US Invites Industry Input on Potential Offshore Oil Leases in California
January 27, 2026
The Trump administration on Monday invited the oil and gas industry to nominate areas for a potential sale of offshore oil and gas leases in Southern and Central California to be held as soon as next year.
Why It's Important
The move is part of a push by U.S. President Donald Trump's Interior Department to expand offshore drilling. It faces strong opposition in California, a state known for ambitious climate change policies, strong environmental regulations and an iconic coastline.
Key Quote
"We're taking the first step toward a stronger, more secure American energy future," Matt Giacona, acting director of Interior's Bureau of Ocean Energy Management, said in a statement.
Context
This step aligns with Trump's energy-dominance agenda, which aims to bolster U.S. fossil fuel production. The United States has not auctioned off Pacific drilling rights since 1984, and California's coastline has been largely protected from new energy development following a 1969 oil spill in Santa Barbara that inspired key environmental protections.
California Governor Gavin Newsom and environmental groups have condemned the plan, which could replace a more moderate leasing schedule from the Biden administration. They argue that it threatens California's coastal economy and ecosystems.
By The Numbers
Federal waters accounted for 14% of U.S. oil production in 2024, but Pacific leases contributed just 0.1% of that output, according to government data.
The Reply
"Trump just took another disturbing step toward opening California's coast to dangerous new offshore drilling," said Kristen Monsell, oceans legal director at the environmental group Center for Biological Diversity. She warned of risks to communities, wildlife, and California's renowned coastline, calling it "a reckless attempt to sell out our coastline to oil companies."
What's Next
The oil and gas industry and the public have 30 days to provide comments to BOEM. The first lease sales in Southern and Central California are tentatively scheduled for 2027.
(Reuters - Reporting by Nichola Groom in Los Angeles; Editing by Bill Berkrot)
