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The U.S. Department of Energy announced on Tuesday, November 10, that it has closed a $480 million loan for Arena Energy's Project Elkhorn to increase oil and natural gas production across the Gulf of America shelf. The project will modernize 22 offshore platforms off the coast of Louisiana, in the Southern Eugene Island area, and it is the Energy Department's first closed loan supporting domestic oil and natural gas production.
At peak production, the upgraded platforms are expected to add up to 38,600 barrels of oil per day and up to 77 million cubic feet of natural gas per day to U.S. energy production. Over the life of the project, Arena expects to add about 125 million barrels of oil and 250 billion cubic feet of natural gas, generating an estimated $1.6 billion in additional federal royalties. The company currently produces about 30,000 barrels of oil a day offshore in the Gulf.
The financing will be used to retool, refurbish, repower and expand capacity at the platforms, return idled platforms to service, and build new natural gas pipeline infrastructure to connect future wells. The loan comes from the department's Office of Energy Dominance Financing, and the department said the announcement was made possible by President Trump's Working Families Tax Cut. The project is expected to create 2,400 construction-related jobs and 400 operations jobs.
"The United States is the world's largest producer and exporter of oil and natural gas, and thanks to President Trump, American energy production will continue to grow," said U.S. Secretary of Energy Chris Wright. "Project Elkhorn will increase oil production by up to 38,600 barrels per day and create thousands of jobs. By providing financing for projects like Project Elkhorn, the Energy Department is expanding domestic production and strengthening our energy security to power American prosperity for decades to come."
"Thanks to President Trump and Secretary Wright's leadership, EDF is putting existing energy infrastructure back to work for the American people," said EDF Director Gregory A. Beard. "Project Elkhorn will expand domestic oil and natural gas production, create good-paying American jobs, and strengthen our energy security while generating substantial returns for American taxpayers."
The deal has drawn concern from environmental activists, WGNO reported, as the loan marks a shift in federal lending toward established fossil fuel operations.
Wednesday, November 11, 2026
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