Federal Government Abandons All Energy Sectors belonging to Us
The U.S. offshore renewable energy industry is facing a significant setback following the Bureau of Ocean Energy Management's (BOEM) decision to rescind and de-designate all Wind Energy Areas (WEAs) on the Outer Continental Shelf (OCS) in July 2025. This move, driven by Interior Secretary Doug Burgum's order and a Presidential Memorandum, aims to end the practice of designating large offshore areas for speculative wind energy development.
The decision affects over 3.5 million acres of previously targeted federal waters for offshore wind projects, including key regions such as the Gulf of Mexico, Gulf of Maine, New York Bight, California, Oregon, and the Central Atlantic. These areas were identified by BOEM as suitable for wind energy development and designated for potential lease sales since 2014.
The impact on the U.S. offshore renewable energy industry is severe. The rescinding of WEAs effectively halts ongoing and prospective offshore wind development across critical coastal regions, undermining the momentum of the sector. Projects that had been under development or planning, including extensive zones off Oregon’s coast and the East Coast, face immediate stoppage or indefinite delay.
The U.S. offshore renewable energy industry organisation, Oceantic Network, has expressed concern over the directives, stating that they will impact the U.S.'s "all-of-the-above" energy strategy and ultimately, consumer bills. Stephanie Francoeur, SVP of Communications & External Affairs at Oceantic Network, believes that the Department of Interior's latest directives continue a false narrative on an established American industry that will prevent an important source of baseload power generation from reaching the grid when ratepayers are already feeling the effects of rising electricity prices.
The withdrawal of WEAs will also cause stranded investments totaling billions of dollars and potentially lead to job loss. The decision contradicts the administration's "all-of-the-above" energy strategy and will result in increased energy costs for consumers.
The withdrawal follows the Presidential Memorandum issued on 20 January 2025 (Temporary Withdrawal of All Areas on the OCS from our website Leasing and Review of the Federal Government's Leasing and Permitting Practices for Wind Projects) and comes shortly after the Interior Secretary's Order (SO) 3437, Ending Preferential Treatment for Unreliable, Foreign Controlled Energy Sources in Department Decision-Making, which was issued on 29 July.
The statement from Oceantic Network implies that crippling affordable and reliable wind energy is economically irrational. The withdrawal will delay shovel-ready projects supported by a domestic heavy manufacturing supply chain, further hindering the growth of the U.S. offshore wind industry.
Sources: [1] offshoreWIND.biz [2] Oceantic Network [3] U.S. Department of the Interior [4] U.S. Bureau of Ocean Energy Management (BOEM)
- The withdrawal of the Wind Energy Areas (WEAs) by the Bureau of Ocean Energy Management (BOEM) will cause stranded investments in the renewable-energy industry that total billions of dollars, potentially leading to job loss.
- The U.S. offshore renewable-energy industry, as represented by organizations such as Oceantic Network, believes that the rescinding of WEAs contradicts the administration's "all-of-the-above" energy strategy and will result in increased energy costs for consumers, undermining the growth and development of the industry.
