MONTHLY ENERGY WATCH – February 2026
We’re pleased to introduce a new IADC advocacy update: Monthly Energy Watch.
Each month, IADC’s Vice President of Policy, Joe Lillis, will share key topics he’s monitoring on Capitol Hill to help keep you informed.
Joe serves as YOUR representative in Washington, DC. Contact him directly anytime with questions or for more information at Joe.Lillis@IADC.org or (202) 256-2656.
Here is what Joe is hearing on the Hill for February 2026!
New oil drilling off the California coast
The Trump administration recently took its first step toward offering new lease sales for oil and gas drilling in the federal waters off the California coast, but there is stiff opposition from California Governor Gavin Newsom’s administration and state legislative leaders.
The Bureau of Ocean Energy Management (BOEM) announced that it is issuing two calls for information and nominations to solicit industry feedback on the specific areas of interest for potential offshore oil and gas leasing off the Southern and Central California coasts. The agency tentatively plans to hold lease sales in both regions in 2027.
“We’re taking the first step toward a stronger, more secure American energy future,” current BOEM Acting Director and former IADC employee Matt Giacona said in a statement.
The request for nominations comes as BOEM is developing its offshore leasing plan, a framework used to schedule offshore lease sales in federal waters for a five-year period. It issued a draft proposal in November that included six sales off the California coast between 2027 and 2030, along with auctions in a number of other controversial areas. That leasing plan will still go through several more iterations and is not expected to be finalized until later this year.
NOAA speeds up process to grant deep-sea mining permits
The National Oceanic and Atmospheric Administration recently announced a final rule that would speed up the process companies must go through to receive exploration licenses and commercial recovery permit applications. This change comes in an effort to boost deep-sea mining in US waters as a way to counter Chinese dominance of critical minerals supply chains.
The NOAA rule would let applicants seek both the license and permits at the same time. NOAA Administrator Neil Jacobs said in a statement that the move would enable “U.S. companies to access these resources more quickly, strengthening our nation’s economic resilience and advancing the discovery and use of critical seafloor minerals.”
After early efforts, deep-sea mining was, for decades, considered an undertaking too difficult to be profitable, but the surge in critical mineral demand and developments in technology have spurred a reconsideration. The Trump Administration has stated that deep-sea mining could play a significant role in ensuring the US is not dependent on foreign counterparts, particularly China.
US Natural gas exports
In November 2025, the United States exported almost 40 percent more liquefied natural gas (LNG) than a year before, according to the Energy Department’s Hydrocarbons and Geothermal Energy Office.
In a recent report, the office stated the US exported 525.1 billion cubic feet of liquefied natural gas, accounting for 65 percent of total US natural gas exports. The top five countries of destination—Turkey, Egypt, the United Kingdom, the Netherlands, and France—accounted for 52 percent of total US LNG exports.
In addition, net natural gas exports to Mexico, by pipeline and truck, rose 5.3 percent from November 2024, and net natural gas exports to Canada fell 8.7 percent in the same period.
The US is the world’s largest exporter of LNG, according to the Energy Information Administration, and Energy Secretary Chris Wright has set a goal of doubling the nation’s LNG exports by the end of President Donald Trump’s term. The Department of Energy report showed that Europe remains a top regional market for US LNG.
BLM advances plan to ease regulations on oil and gas leases
The Bureau of Land Management (BLM) is proposing to make it easier for oil and gas developers to mix together fossil fuels extracted from different leases or reservoirs and cut down on the equipment they need to use.
Current guidelines at BLM allow commingling only when ownership of underground mineral rights is the same. The proposed changes would allow operators to combine oil and gas extracted from federal, state, or private land and measure it at one location.
The oil and gas industry has pushed for regulatory changes as measurement technologies have become more advanced and companies have figured out how to successfully drill in many directions. BLM will accept comments on the proposal until 31 March 2026.
Canada and India agree to renewed energy push
Canada and India have pledged to deepen trade in oil and gas as the two countries are set to renew relations, according to a joint statement between Natural Resources Canada and the Ministry of Petroleum and Natural Gas of India.
The new commitment will see Canada expand shipments of crude oil, liquefied natural gas, and liquefied petroleum gas to India, while India agrees to send more refined petroleum products to Canada. The renewed push on energy cooperation between the two countries is set to be one of Prime Minister Mark Carney’s most significant efforts to diversify Canada’s export markets at a time of rising trade uncertainty with the United States.
India is the world’s third-largest oil consumer, fourth-largest Liquefied Natural Gas (LNG) importer and third-largest Liquefied Petroleum Gas (LPG) consumer, with the fourth-largest refining capacity globally. The country is expected to account for more than one-third of global energy demand growth over the next two decades—more than any other nation.
