Modernizing Permitting: Protecting America’s Offshore Energy Future

The American offshore energy industry is a cornerstone of our nation’s energy, economic, and strategic strength. The U.S. offshore sector supports hundreds of thousands of jobs, drives investment, powers the energy we rely upon every day, and truly builds modern society. But the progress we’ve made needs to be made more durable. Without comprehensive permitting reform, the United States risks policy and investment whiplash, sharp swings in production and investment that hurt workers, communities, and our long-term wellbeing and energy security.

Today, companies want to invest across the full spectrum of offshore energy technologies: oil and gas, offshore wind, carbon capture and storage (CCS), deep-sea mining, and hydrogen. And technologies are being developed for the deployment of nuclear energy in the maritime sector. Each sector represents potentially billions of dollars in private capital, supports high-wage jobs, and anchors an entire network of offshore service providers, shipbuilders, vessel companies, fabricators, port operators, and technology companies.

But the federal permitting system is outdated, bureaucratic, and vulnerable to judicial and political disruptions, undermining the ability of these projects to move forward.

We’ve seen what happens when permitting breaks down. Under the previous administration, long-planned oil and gas projects were hit with punitive actions that stalled production and injected uncertainty into the industry. Years of planning and billions in investment were put at risk, costing jobs and U.S. energy output. Lease sales were canceled, shutting off new opportunities and driving capital overseas. And it’s not just oil and gas. This year, the government halted construction on a permitted offshore wind project after $5 billion had already been spent and the work was 80 percent complete.

This “stop-and-go” policy environment is harmful for every segment of offshore energy, whether it’s traditional oil and gas or emerging technologies like wind and CCS.

The solution is straightforward: Congress must pass bipartisan permitting reform, and the reforms must include judicial and administrative measures that provide stability and predictability. This means establishing clear timelines for project reviews, protecting permits and contracts from being overturned without cause, and limiting litigation that can arbitrarily cancel permitted projects or hold investment in indefinite legal limbo.

Regulatory certainty should not be a political football, it should be the foundation that allows companies to commit capital, hire workers, and plan for decades of energy production.

NOIA has been meeting with offices in both the House and Senate, on both sides of the aisle. Our member company executives have spoken directly with policymakers, making clear that permitting stability is the foundation of U.S. energy production. The response has been encouraging: there is genuine bipartisan interest in advancing reform. Lawmakers recognize what’s at stake - energy security, economic growth, and industrial competitiveness - the momentum is building. Put simply, there’s growing agreement across party lines that if we fail to modernize our permitting system, we risk higher costs for consumers and shortages in the power sector when supply falls behind demand.

Offshore energy is inherently interconnected. A single deepwater oil project doesn’t just produce barrels; it sustains an ecosystem of vessel operators, engineers, fabrication yards, and ports. Offshore wind depends on many of the same maritime capabilities, and CCS will rely on pipelines, monitoring systems, and subsea expertise built by oil and gas operators. Deep sea mining will similarly leverage this industrial base.

Progress in one part of the offshore energy economy supports the entire network. Furthermore, American’s offshore energy sector plays a substantial role within our national energy system, providing the fuel that moves America, fuel and natural gas for states like Florida, and a base for exports of oil and gas to help stabilize our allies in the midst of global conflict. When permitting delays or legal challenges disrupt one segment, the ripple effects impact every other project and our entire energy system.

Judicial reform is especially critical. NEPA and other environmental statutes play an essential role in ensuring informed project decisions, but the unnecessarily prolonged NEPA process and the litigation that inevitably follows, and the potential for vacatur of permits, create uncertainty. Projects can be tied up for years, discouraging investment and slowing production. By clarifying judicial review standards and establishing enforceable permitting timelines, Congress can provide the certainty that offshore energy projects need while maintaining strong environmental safeguards.

In other words, we will continue to the produce energy we need while environmental laws remain in place.

Offshore energy is more than just power—it’s jobs, investment, and economic strength. In the Gulf of America alone, oil and gas support over 400,000 jobs across all 50 states. Offshore wind is adding thousands more, fueling growth in ports, shipyards, and fabrication yards from the Gulf Coast to the Atlantic. These aren’t competing industries, they’re complementary, together building a stronger offshore energy ecosystem. And right now, offshore wind is leading the way in U.S. vessel construction, advancing the Administration’s goal of maritime dominance. Permitting reform protects and accelerates all of it.

Time is of the essence. The United States is competing with nations that are moving aggressively to develop offshore resources. Every year of delay in the U.S. is a lost opportunity for investment, innovation, and leadership.

Congress has a chance to act decisively. A bipartisan permitting reform package that strengthens judicial certainty, sets enforceable timelines, and protects permits and contracts would anchor U.S. leadership in offshore energy for decades. It would prevent energy whiplash, ensure that existing and emerging projects can move forward without political or legal interference, and sustain the industrial base that underpins the entire sector.

Offshore energy is a national asset. It powers our economy, strengthens our energy security, and drives American innovation. But without a modern, durable permitting framework, our progress remains vulnerable. It’s time for lawmakers to provide the certainty that businesses, workers, and communities deserve.