WASHINGTON – The U.S. Senate has approved a resolution led by Sen. John Kennedy (R-La.) to repeal a Biden administration rule that places additional regulatory burdens on offshore oil and gas production. The resolution, introduced under the Congressional Review Act (CRA), received bipartisan support and now moves to the House of Representatives for consideration.
The Bureau of Ocean Energy Management (BOEM) issued the rule in September 2024, requiring all new oil and gas leaseholders on the outer continental shelf to submit an archaeological report before drilling or laying pipelines. The regulation mandates costly surveys for marine archaeological resources, such as shipwrecks and cultural artifacts, regardless of prior surveys.
Kennedy Criticizes the Regulation
On the Senate floor, Sen. Kennedy strongly opposed the rule, calling it an unnecessary and costly burden on small and independent oil producers.
“We’ve surveyed the entire Gulf of America in the 87 years since we started drilling there. We have surveyed 311,652 square nautical miles—the surface area of Texas and California combined. That’s how we found 4,000 shipwrecks, and it’s cost hundreds of millions of dollars. So, we know what’s there,” Kennedy said.
“But in September 2024, the Department of the Interior, in an effort to further hurt fossil fuels, passed a rule saying that every new well must be surveyed again. Why? What’s the benefit?”
Kennedy argued that the rule unnecessarily increases compliance costs for energy producers, with small operators bearing the highest financial burden. The Biden administration itself acknowledged this impact, stating that 100% of the increased compliance costs in the Gulf would be borne by small entities. These independent operators account for one-third of all oil production in the region.
“Common sense is illegal in Washington,” Kennedy remarked. “This is not a normal place, but I hope folks who still have common sense will vote to get rid of this foolish rule.”
Next Steps in the Legislative Process
Kennedy introduced the resolution to repeal the BOEM rule on February 4, 2025. This regulation is one of more than 225 new rules imposed by the Biden administration on the oil and natural gas industry.
With Senate approval, the resolution will now head to the House of Representatives for further debate and a vote. If passed, it would nullify the BOEM rule and reinstate the previous policy, which only required archaeological surveys when there was reason to believe a site contained significant artifacts.
Industry leaders and small oil producers have supported Kennedy’s resolution, citing the need to reduce unnecessary regulatory hurdles and maintain energy production efficiency in the Gulf of Mexico.