The Biden Administration seeks to establish a permanent oil drilling ban in federal waters, employing a 70-year-old legislative tool to enshrine this policy beyond future reversals.
At a Glance
- Biden plans to use the 1953 Outer Continental Shelf Lands Act to achieve the ban.
- The ban affects large sections of the Atlantic and Pacific Oceans.
- This action aims to shield the decision from potential reversals by future administrations.
- The oil and gas industry heavily impacts state budgets, particularly in New Mexico.
- The move aligns with broader strategies for transitioning to a green economy.
Strategic Use of Historical Law
President Biden intends to invoke the Outer Continental Shelf Lands Act of 1953 to permanently ban oil drilling in substantial ocean areas. This action illustrates a strategic deployment of historical legislation to reinforce environmental protection, making reversals by possible future administrations, such as a Trump-led one, more complicated. This deliberate use of legislative tools signals a longstanding commitment to sustainable policies, aiming to withstand shifts in political power.
The ban underscores a victory for environmental advocates lobbying against greenhouse gas emissions and climate change. President Obama previously used similar legal instruments, effectively barring offshore drilling in parts of the Arctic and Atlantic Oceans, which courts ruled irreversible without congressional action. Biden’s approach mimics this strategy, strengthening the administration’s legal foundation to protect federal waters indefinitely.
Notably Biden’s executive order would be rooted in a 1953 law giving presidents broad discretion to withdraw US waters from oil leasing (but not explicitly authorizing revocations). Trump himself used the same power to thwart leasing near Florida weeks before the 2020 election. https://t.co/y9dIaLV66t
— Jennifer A. Dlouhy (@jendlouhyhc) January 3, 2025
Economic and Industrial Impact
While the ban demonstrates the Administration’s environmental priorities, there are significant implications for the oil and gas industry, which has historically capitalized on federal leases. Federal leasing generated substantial royalties, crucial for state economies, like New Mexico’s, heavily dependent on these revenues, raising concerns about potential economic repercussions. Such a ban could be impactful for companies lacking stockpiled leases, as the need for new wells to replace declining production remains critical.
“President Biden is expected to permanently ban new oil and gas drilling in large sections of the Atlantic and Pacific oceans, as well as other federal waters, in a way that could be difficult for the Trump administration to unwind, according to two people familiar with the plans.”
Federal waters contributing significant royalties to state budgets are essential to consider. The department’s pause on new leases extends a prior 60-day ban, contrasting with existing leases that remain unaffected. Biden’s administration underscores this policy through a comprehensive approach underpinned by a National Climate Task Force and a Civilian Climate Corps Initiative to prioritize sustainable transitions.
President Joe Biden is preparing to issue a decree permanently banning new offshore oil and gas development in some US coastal waters https://t.co/kC2mofX2wp
— Bloomberg (@business) January 2, 2025
Towards a Sustainable Future
The Administration’s ban on new oil and gas drilling aligns with a broader strategy to address climate change and transition towards a green economy. The established National Climate Task Force and the directive to review fossil fuel leasing programs reflect this objective. Expanding offshore wind projects by 2030, plays into promoting job growth within renewable energy sectors, aiming for a sustainable future.
“We’re not going to ban fracking. We’ll protect jobs and grow jobs including through stronger standards by controls from methane leaks and union workers willing to install the changes.” – Biden
With future changes anticipated in the political landscape, the Biden Administration is consolidating efforts for durable ecological policies. As efforts to expand to renewable energy markets persist, the strategic ban sets a precedent, hoping to insulate these decisions from future political shifts.
Sources
1. Biden Expected to Permanently Ban Oil Drilling in Some Federal Waters
2. The Ins and Outs of Biden’s Federal Oil Leasing Ban
