Offshore Decommissioning in the Gulf of America (Gulf of Mexico): Idle Iron, Overdue Wells and Who Does the Work (2026)
Since the 1940s, operators have installed more than 55,000 wells and 7,000 platforms on the federal Outer Continental Shelf. Every one of them must eventually be plugged and removed. This guide explains the rules, the size of the backlog, the 2026 policy changes and the subsea work behind each step.
When a Gulf lease ends, operators generally have one year to plug wells and remove platforms; idle structures on active leases must also be dealt with under BSEE’s idle-iron rules[1][2]. GAO found that, as of June 2023, more than 2,700 wells and 500 platforms – over 75% of end-of-lease and idle infrastructure – were overdue, against an estimated $40–70 billion in total decommissioning cost and about $3.5 billion in supplemental bonds[1]. That backlog is a steady source of plugging, cutting and removal work for Gulf Coast divers, ROV crews and lift vessels.
01. The rules: when decommissioning is required
Decommissioning on the federal OCS is governed by BSEE’s regulations at 30 CFR Part 250, Subpart Q[3]. Two triggers matter:
- •End of lease. Wells must be permanently plugged and platforms and other facilities removed, generally within one year after the lease or right-of-way ends[1][3].
- •Idle iron on active leases. BSEE’s 2010 “idle iron” notice (NTL 2010-G05) required operators to deal with wells and platforms no longer useful for operations: idle wells within 3 years and idle platforms removed within 5 years of becoming no longer useful[2]. When it was issued, it covered about 3,500 non-producing wells and 650 platforms[2].
02. How big is the backlog?
GAO’s 2024 report (GAO-24-106229) is the most recent independent audit of the backlog[1]:
| Measure | Figure | As of |
|---|---|---|
| Wells installed on the OCS[1] | 55,000+ | Since 1940s |
| Platforms installed[1] | 7,000+ | Since 1940s |
| Overdue wells[1] | 2,700+ | June 2023 |
| Overdue platforms[1] | 500+ | June 2023 |
| Share of end-of-lease / idle infrastructure overdue[1] | Over 75% | June 2023 |
| Leases ended 2010–2022 that missed the 1-year deadline[1] | 40%+ of wells, 50%+ of platforms | 2010–2022 |
| Estimated total decommissioning cost[1] | $40–70 billion | 2023 |
GAO figures as published. GAO also found BSEE rarely used civil penalties; its four recommendations to Interior were still open as of March 2026.
For scale: when the idle-iron notice was issued in September 2010, BSEE counted 3,233 idle wells and 617 idle platforms; by February 2013 that had fallen to 2,016 wells and 400 platforms, even as new ones went idle[4]. The backlog shrinks when enforcement is active and grows back as fields age.
03. What changed in 2026
- •Financial-assurance rollback proposed. BOEM proposed revising its 2024 supplemental financial-assurance rule, lowering the standards used to decide whether a company must post extra bonds. Comments closed May 8, 2026[5]. Industry groups welcomed it; critics point to the GAO backlog. A final rule had not been reported at the time of writing.
- •Congress. A bicameral Plug Offshore Wells Act of 2026 was introduced in March 2026 to require reporting and faster decommissioning, following GAO’s recommendations[6]. Its status beyond introduction is not confirmed here.
- •New name, same rules. BSEE’s September 2025 rule replaced “Gulf of Mexico” with “Gulf of America” across its regulations with no substantive change[7].
- •More leasing. New lease sales (see our lease sale tracker) add future infrastructure – and future decommissioning obligations.
04. The work: what decommissioning looks like underwater
Decommissioning is a sequence of distinct jobs, each with its own crews and equipment:
| Step | What happens | Subsea crews involved |
|---|---|---|
| Well plugging & abandonment (P&A) | Cement plugs set in the wellbore; on subsea wells, done from a rig or intervention vessel | ROV crews; divers on shallow platform wells |
| Conductor and casing cutting | Casing strings cut below the mudline, by abrasive water jet, diamond wire or explosives | Air and mixed-gas divers, ROV tooling |
| Topsides removal | Deck and equipment lifted off in one piece or in sections | Heavy-lift and derrick barges |
| Jacket removal | Legs severed below the mudline, jacket lifted or towed | Divers, ROV, explosives contractors |
| Pipeline decommissioning | Lines flushed, cleaned, plugged and often left in place where approved | Divers on the shelf; ROV in deepwater |
| Site clearance | Seabed survey to confirm debris is gone | Survey vessels, ROV |
General description for orientation; actual methods are set in each BSEE-approved decommissioning application.
Much of this work is on the continental shelf (30–200 m), where air and mixed-gas divers still do cutting and rigging. That is why decommissioning sits alongside pipelay in our 3D map’s shelf sector, and why Louisiana dive companies list P&A and removal among their core services. For pay context see commercial diver salary in Louisiana and Texas.
05. Outlook for crews and contractors
- •Demand is structural. Thousands of wells and hundreds of platforms are already past deadline. Whatever happens to bonding rules, the steel is still in the water.
- •Timing is policy-sensitive. Softer bonding or enforcement can push work to later years; tighter rules or hurricane damage can pull it forward. Toppled structures are far more expensive to clean up than planned removals.
- •Shelf first, deepwater later. The shallow shelf holds most of the old idle iron. Deepwater subsea wells will be the next wave, and they rely mainly on ROVs and intervention vessels rather than divers.
06. Frequently Asked Questions
How long do operators have to decommission in the Gulf of America? ↓
Generally one year after a lease ends. Under BSEE's idle-iron rules, idle wells on active leases must be addressed within three years and idle platforms removed within five years of no longer being useful.
How many offshore wells and platforms are overdue for decommissioning? ↓
GAO reported that as of June 2023 more than 2,700 wells and 500 platforms in Gulf federal waters were overdue - over 75% of end-of-lease and idle infrastructure.
How much will Gulf decommissioning cost? ↓
GAO cited estimates of $40 to $70 billion in total decommissioning costs, against about $3.5 billion in supplemental bonds held by BOEM as of June 2023.
What is idle iron? ↓
Idle iron is offshore infrastructure - wells, platforms and pipelines - that is no longer producing or useful for operations but has not been plugged or removed.
Do commercial divers work on decommissioning? ↓
Yes, especially on the continental shelf, where air and mixed-gas divers cut conductors and jacket legs, rig lifts and decommission pipelines. Deepwater subsea wells rely mostly on ROVs and intervention vessels.
Sources
- [1]U.S. GAO — GAO-24-106229, Offshore Oil and Gas: Interior Needs to Improve Decommissioning Enforcement (Jan 2024)
- [2]BSEE — NTL 2010-G05, Decommissioning Guidance for Wells and Platforms (idle iron)
- [3]eCFR — 30 CFR Part 250 Subpart Q, Decommissioning Activities
- [4]Offshore Engineer — BSEE: Offshore decommissioning accelerates in Gulf of Mexico (2013 data)
- [5]Mondaq — BOEM proposes to loosen supplemental financial assurance requirements (2026)
- [6]Sen. Peter Welch — Bicameral bill to decommission offshore wells, platforms and pipelines (Mar 2026)
- [7]Federal Register — Restoration of names: Gulf of America (BSEE, Sept 15, 2025)
All sources accessed November 1, 2026. Figures are as published by each source; agency pages may be revised after publication.
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Independent information, not investment, legal or engineering advice. Gulf Coast Subsea is an independent directory. It is not affiliated with or endorsed by any company or agency mentioned on this page. Figures are compiled from public sources and labeled by source and date. Confirm current terms directly with BOEM, BSEE and the companies involved.