Trump plans new offshore oil drilling near California and Alaska | investingLive

Trump to revive offshore drilling in California, Alaska and Gulf in major policy reversal

Info via a Wall Street Journal (gated) report.

The Trump administration is preparing to unveil a sweeping proposal to allow oil drilling off the California coast, as well as in federal waters near Alaska and the Eastern Gulf of Mexico, according to people familiar with the matter. The move would reverse a ban imposed under the Biden administration and reignite a fierce political battle over U.S. energy policy.

The announcement, expected later this week, aligns with President Trump’s “drill, baby, drill” campaign pledge to ramp up domestic energy production and lower fuel costs. It follows a Louisiana federal court ruling that deemed Biden’s offshore drilling moratorium illegal, clearing the path for new lease plans.

Trump argues that expanding oil and gas exploration could cut energy costs by up to 50%, though analysts note that most producers remain reluctant to invest heavily in expensive offshore projects. Many companies are prioritising shareholder returns over output growth, especially amid uncertain long-term demand and environmental scrutiny.

In a sign of the policy shift, Interior Secretary Doug Burgum earlier this year ordered officials to begin drafting a schedule for new offshore lease sales, citing “responsible energy development” aimed at job creation, economic growth, and energy independence.

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The proposal could bolster U.S. energy sector sentiment and offshore service stocks but may face lengthy legal and environmental challenges, limiting near-term production gains.