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Federal Committee Grants Exemption for Gulf Oil and Gas Drilling from Endangered Species Regulations

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On Tuesday, the Trump administration decided to exclude oil and gas operations in the Gulf of Mexico from the constraints of the Endangered Species Act. This decision, backed by Defense Secretary Pete Hegseth, comes amid concerns that legal actions by environmental activists could disrupt the nation’s energy resources during ongoing conflicts with Iran.

Opponents argue that this decision by the Endangered Species Committee, often referred to as the “God Squad” for its power over the fate of species, risks the survival of a unique whale species and could harm surrounding marine ecosystems. The committee, led by Interior Secretary Doug Burgum and comprising several Trump administration officials, convened for the first time in over 30 years as the nation grappled with oil market instability and rising energy costs due to tensions with Iran.

Despite the United States being the largest oil producer globally, it hasn’t escaped the impact of increasing fuel prices. For the first time since 2022, the average cost of gasoline soared past $4 per gallon on Tuesday, reflecting the strain of global oil shocks.

Hegseth argued before the committee that halting oil production in the Gulf not only affects the U.S. but also aids its adversaries. “We must not allow our regulations to undermine our position while boosting those who threaten us. When Gulf development stalls, it hampers our ability to produce the energy necessary for national security and economic stability,” he stated.

Environmental advocates attempted to prevent the committee’s meeting and have vowed to contest the exemption legally. They warn that this move could accelerate the extinction of the Rice’s whale, a species found solely in the Gulf of Mexico, with government biologists estimating that only about 50 individuals remain.

“If Trump is successful here, he could be the first person in history to knowingly extirpate a species from the face of the earth. That’s how precarious the condition of the Rice’s whale is,” said Patrick Parenteau, emeritus professor of law at Vermont Law School.

Streamlined approvals for drilling

Republican President Donald Trump has made increased fossil fuel production a central focus of his second term. He wants to open new areas of the Gulf off the Florida coast to drilling, and has proposed sweeping rollbacks of environmental regulations disliked by industry.

Hegseth had notified Burgum on March 13 that an Endangered Species Act exemption for oil and gas drilling in the Gulf was “necessary for reasons of national security.”

Hegseth told committee members Tuesday that Iran’s efforts to block shipping through the world’s busiest oil route, the Strait of Hormuz, underscored the national security imperative of a robust domestic oil production. He said the energy industry is under threat from pending litigation from environmental groups challenging government approvals for drilling.

Industry observers said the exemption could have significant implications for energy companies by streamlining approvals of new projects and impeding opponents’ ability to derail drilling plans.

“Serial litigation from activist groups targeting a lawful, well-regulated industry should not be allowed to indefinitely obstruct projects of clear national importance,” said Erik Milito with the National Ocean Industries Association, which represents offshore developers.

The Gulf of Mexico is one of the nation’s top oil regions, producing 2 million barrels a day. It accounts for almost 15% of crude pumped annually in the U.S., plus a small share of domestic natural gas production.

The Gulf also has been the scene of environmental disasters such as BP’s Deepwater Horizon blowout in 2010 that killed 11 workers and spilled 134 million gallons (500 million liters) of oil. A spill in the Gulf earlier this month spread 373 miles (600 kilometers), contaminating at least six species and polluting seven protected natural reserves.

The Trump administration in mid-March approved BP’s new $5 billion ultra-deepwater drilling project in the Gulf.

Whales, turtles and sturgeon at risk

A 2025 National Marine Fisheries Service analysis determined the Gulf oil and gas program was likely to harm several species of whales, sea turtles and Gulf sturgeon that face potential harm from ship strikes, oil spills and other impacts.

The Gulf exemption is the first time national security has been cited to justify action by the Endangered Species Committee. Conservation groups immediately condemned the action and asserted it was done illegally.

“The Endangered Species Act has not slowed an iota of oil from being extracted from the Gulf,” said Defenders of Wildlife President Andrew Bowman. “I cannot stress enough how unprecedented and unlawful this action is.”

Since 1973, the Endangered Species Act has made it illegal to harm or kill species on a protected list. The committee was formed in 1978 as a way to exempt projects if no alternative would provide the same economic benefits in a region or if it was in the nation’s best interest.

Before this week, the panel had convened just three times and issued only two exemptions. The first was in 1979 to allow construction on a dam on the Platte River in Wyoming, home to the whooping crane. It last met in 1992, allowing logging in northern spotted owl habitats in Oregon. That exemption request was later withdrawn.

Its latest meeting follows a federal judge’s ruling on Monday that struck down attempts during Trump’s first term to weaken rules for endangered species.

The panel’s members include the secretaries of agriculture, interior and the Army, the chairperson of the Council of Economic Advisers, and the administrators of both the Environmental Protection Agency and the National Oceanic and Atmospheric Administration. They all voted in favor of Hegseth’s request for an exemption.

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