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Erik Milito is the president of the National Ocean Industries Association. He wrote this for InsideSources.com.
President-elect Donald Trump’s drive to make government more efficient with the help of innovators Elon Musk and Vivek Ramaswamy is exciting. There’s one opportunity they should take advantage of, and it’s closer than they might think: America’s offshore energy.
With the Gulf of Mexico as an energy powerhouse, America can boost jobs, government revenue and environmental impact — all without choosing sides between fossil fuels and renewables.
The gulf is more than a prolific hub of “liquid gold”; it’s a lifeline for economic and environmental prosperity.
The gulf’s oil and gas industry supports 400,000 jobs, contributes $34 billion annually to the economy and funds vital conservation projects. These resources can offer lower-carbon energy options, producing more energy with a smaller footprint than other parts of the world.
Offshore oil and gas in the gulf contributed more than $6 billion to federal revenues in 2023. Yet, in years of more favorable energy policies, annual revenues topped $17 billion. This is critical revenue for an economy that needs sustainable growth and deficit reduction. With annual lease sales, those numbers could soar.
Historically, regular lease sales have attracted investment, boosted production and helped assert America’s energy sovereignty. Yet, the current plan offers only a historic low of three lease sales in the next five years — a pace that doesn’t match the potential in front of us or our energy reality.
It’s not just about oil and gas. Offshore wind is quickly emerging as a significant player, with federal lease sales bringing in $6 billion. Regular lease offerings in wind energy would allow companies to choose the best time to invest, providing flexibility in responding to the market’s ups and downs and resulting in a better deal for energy consumers.
When oil, gas and wind work together, we get a ripple effect of benefits nationwide. Companies throughout the supply chain — vessel service companies, steel fabricators and marine construction firms — have been securing contracts and deploying workers for offshore wind projects.
From Texas to Louisiana and Florida to North Carolina and even Wisconsin, the economic rewards of offshore wind go beyond the states immediately onshore from wind projects. A more diversified energy strategy boosts economies nationwide, showing how energy sectors can grow together, without competition.
This collaborative approach doesn’t just strengthen our energy independence; it positions the United States to lead in emerging offshore technologies like carbon capture and storage and critical mineral extraction. Bipartisan legislation is already primed to establish offshore oil and gas lease sale mandates, laying the groundwork for a predictable leasing schedule. By making this the norm under the new White House and Congress, we can secure a steady revenue stream, boost our energy security and solidify America’s leadership in the global energy arena.
In their quest for a smarter, more cost-effective government, Trump, Musk and Ramaswamy should view offshore energy as a golden opportunity to help meet their goals. The Gulf of Mexico, in particular, has been a bastion of efficient energy operations that has been responsible for more than $100 billion in private revenues to government coffers, revenue that can be used to assist in the efforts of the Department of Government Efficiency to reign in deficit spending.
By tapping America’s offshore resources, DOGE and the new administration can deliver a future where economic growth, environmental responsibility and energy innovation come together — securing America’s place as a global energy leader and transforming the energy landscape for good.
Let’s get to work.
