🛢️Offshore Distribution Cap Changes Impacting Oil & Gas Revenue
Offshore Distribution Cap Changes
Summary
ONRR disburses certain monies generated from offshore oil and gas production on the Outer Continental Shelf ("OCS") in accordance with applicable laws. Through the enactment of the One Big Beautiful Bill Act (OBBB), Congress amended the offshore distribution caps for these disbursements. ONRR is therefore amending its regulations to be consistent with these statutory changes.
Agencies
- Interior Department
- Natural Resources Revenue Office
Business Impact
$$$ - High
The regulation updates the offshore distribution cap for revenues from oil and gas production on the Outer Continental Shelf, raising it from $500 million to $650 million for fiscal years 2025-2034. This change directly impacts businesses involved in these sectors, as they may expect changes in royalty revenues and funding distributions to states and local areas.