Federal regulators have updated oil and gas commingling rules to align with the One Big Beautiful Bill Act. The Department of the Interior aims to strengthen domestic energy production by cutting red tape and streamlining operations, while maintaining safety and efficiency standards. Energy advocates praised the move as a victory for American workers and families.
On August 20, 2025, the Department of the Interior issued a press release announcing major changes to oil and gas commingling regulations. These updates were led by the Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Land Management (BLM). BSEE finalized offshore rules that clarify expectations for commingling while preserving well integrity and safety. BLM issued interim onshore guidance to broaden commingling authority across public and tribal lands until permanent regulations are enacted.
The reforms were mandated under the One Big Beautiful Bill Act (H.R. 1), signed into law on July 4, 2025. The bill directs the Department of the Interior to authorize commingling based on engineering and measurement capabilities, rather than mineral interest ownership. This shift allows for more efficient use of shared infrastructure and improves the economic viability of energy projects.
Secretary of the Interior Doug Burgum stated that the changes reduce unnecessary bureaucracy while maximizing the long-term value of American energy resources. The department emphasized that the updated rules align with President Trump’s executive order “Unleashing American Energy” and the administration’s broader priorities of energy dominance, economic growth, and resource resilience.
Larry Behrens, communications director for Power the Future, praised the decision. He said the reforms would lower production costs and support domestic energy producers after years of regulatory setbacks. Behrens added that commingling helps maximize oil recovery while maintaining accountability through modern monitoring systems. He also called for additional actions, such as expanding coal plant capacity, to further strengthen the power grid and enhance energy reliability.
Power the Future, a nonprofit organization, advocates for the interests of American energy workers. According to Behrens, the updates represent a necessary step toward reversing taxpayer-funded energy failures of recent years and restoring common sense to U.S. energy policy.
The Department of the Interior also highlighted recent steps to reinforce energy independence, including streamlined oil and gas leasing, expanded revenue-sharing for coastal projects, and a revised leasing schedule for increased energy production.
The American Council on Renewable Energy, which supports wind and solar power, has not yet commented on the new rules.
