CRS Report on Decommissioning Offshore Oil and Gas Infrastructure, Issues for Congress

GAO found that, of roughly 1,600 platforms and 8,000 wells in the Gulf of Mexico at the time, more than 500 platforms and 2,700 wells were overdue for decommissioning under DOI regulations. Congress and successive presidential administrations have been considering how to address these offshore decommissioning needs and reduce federal financial liability.

Offshore Oil and Gas Decommissioning Challenges

The Government Accountability Office (GAO) found that, in 2024, over half of the platforms and wells in the Gulf of Mexico were overdue for decommissioning. Many offshore operators have not fulfilled their responsibilities to remove facilities from the seafloor or plug all wells and pipelines. This has left federal authorities responsible for decommissioning some infrastructure, which can be costly due to insufficient financial bonds provided by lessees. Congress and previous administrations are looking at ways to improve how these structures are decommissioned, including considering less expensive options like leaving some structures in place.

Decommissioning Offshore Leases

Congress and past presidential administrations have looked at how to help offshore leaseholders meet decommissioning requirements and reduce federal financial liability. Some ideas include changing regulations for financial assurance and supplemental bonding, or reducing costs by leaving some structures in place, like artificial reefs. Decommissioning happens when a lease stops producing oil and gas, after which all wells must be permanently plugged within one year, along with removing the platforms and other equipment at least 15 feet below the mudline unless they are repurposed for other uses.

Offshore Platform Decommissioning Costs

The removal of offshore oil and gas platforms, including pipelines that may be buried or on the seafloor, can cost tens of millions per lease in shallow water and hundreds of millions per lease in deep water. In 2023, studies estimated the average costs to decommission a well in federal waters (Gulf of America) at $660,000 for shallow water and $24 million for deep water. The process also involves transporting the platform to land for recycling or disposal, with BSEE noting an annual average of 127 platform removals over the past decade.

The report, Decommissioning Offshore Oil and Gas Infrastructure: Issues for Congress (R49495), by Laura B. Comay, Caitlin Keating-Bitonti, Anthony R. Marshak, is dated October 29, 2026. Read it on Congress.gov.