WASHINGTON, D.C. – Sen. John Kennedy (R-La.) has introduced a Congressional Review Act (CRA) resolution aimed at repealing a Biden administration rule that imposes new regulatory hurdles on offshore oil and gas production. The rule, issued by the Bureau of Ocean Energy Management (BOEM), requires all new leaseholders on the outer continental shelf to submit costly archaeological reports before production can begin.
Kennedy, who serves as Chair of the Senate Appropriations Subcommittee on Energy and Water Development, argues that the regulation places an unnecessary financial and bureaucratic burden on energy producers, driving up costs for American consumers and weakening national energy security.
“By handcuffing Louisiana and America’s energy production, President Biden hurt our national security and sent prices soaring. Congress must act quickly to reverse his lame-duck move to burden oil and gas producers with even more regulations,” Kennedy said.
New Rule Expands Reporting Requirements
Previously, BOEM required archaeological surveys only if a project posed a potential risk to cultural or historical sites. However, the new regulation mandates that all new leaseholders must conduct surveys, regardless of risk, leading to significant compliance costs.
The rule, which took effect on Oct. 3, 2024, also requires existing leaseholders to comply within 11 months, raising concerns about project delays and financial strain on energy companies.
Sen. Cindy Hyde-Smith (R-Miss.), who co-sponsored Kennedy’s resolution, also criticized the administration’s actions.
“The Biden administration was in hyperdrive to finalize regulatory strangleholds on U.S. oil and gas production. With the new Congress, I truly hope we can effectively use the Congressional Review Act to overturn this rule and return some commonsense to our nation’s energy policies,” Hyde-Smith stated.
Impact on Energy Production and Economy
The offshore energy sector is a key driver of Louisiana’s economy, supporting thousands of jobs and contributing to U.S. energy independence. Industry leaders warn that excessive regulations could discourage investment, leading to higher energy prices for consumers and greater reliance on foreign oil.
Kennedy’s resolution aims to roll back these regulatory requirements and ensure that offshore oil and gas production remains competitive. The measure will now move through Congress for consideration, where it is expected to face debate over the balance between environmental oversight and economic growth.
What’s Next?
If the CRA resolution passes, it would invalidate BOEM’s new rule and prevent similar regulations from being reissued without congressional approval. The effort aligns with broader Republican energy policy goals to increase domestic production, reduce regulatory barriers, and lower energy costs for American consumers.
Kennedy’s push to overturn the BOEM rule underscores ongoing tensions between federal energy policies and industry priorities, setting the stage for a heated legislative battle over the future of offshore oil and gas development.