US Plans to Revise Biden's Offshore Oil Bonding Rule

The Interior Department announced plans to revise a Biden-era rule that required offshore oil and gas operators to provide nearly $7 billion in additional financial assurances for decommissioning old infrastructure. The original 2024 rule was intended to protect taxpayers by ensuring companies lacking strong financial credentials or sufficient reserves could cover cleanup costs if they went bankrupt, following concerns raised by the Government Accountability Office. The Trump administration's revision would revert to a previous regulatory framework, reducing financial burdens on oil and gas companies and allowing them to redirect capital toward exploration and production. Proponents argue this approach will lower costs for the industry and boost domestic energy production, while critics, including environmental groups, warn it could shift cleanup costs to taxpayers and weaken accountability for decommissioning. The Department expects to finalize the new rule in 2025 and will seek public comment. Legal challenges from oil-producing states previously contested the Biden rule, though a federal judge declined to block it.