Biden’s decision to enforce a permanent ban on oil drilling in federal waters, invoking a 70-year-old law, marks a deliberate move to fortify environmental policies that stand resilient against future political shifts.
At a Glance
- President Biden set to permanently ban oil drilling in federal waters using a 1953 law.
- The move leverages historical law to ensure policy resilience against future challenges.
- A National Climate Task Force will prioritize scientific endeavors in policy-making.
- The ban aligns with Biden’s climate agenda, impacting oil and gas industry operations.
Strategic Environmental Protection
President Biden recently announced a permanent ban on new oil and gas drilling in large areas of the Atlantic and Pacific Oceans. This policy employs a provision from the 1953 Outer Continental Shelf Lands Act, offering a robust legal basis for the withdrawal of federal waters from future leasing. By doing so, Biden is ensuring this ban withstands potential challenges or reversals from subsequent administrations.
The federal leasing system has frequently been criticized for being outdated and overly beneficial to the oil and gas industry. Through these actions, the Biden administration demonstrates a commitment to recalibrating priorities toward environmental conservation, despite the longstanding criticisms. Interestingly, previous actions, such as President Obama’s Arctic drilling ban, set a precedent, being upheld by courts against attempts by President Trump to overturn them without congressional approval.
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
Broader Implications for the Oil Industry
Biden’s decision to enforce this ban has significant implications for the oil and gas industry, which has been accused of exploiting leasing and drilling systems on public lands. The Department of the Interior is now tasked with reviewing fossil fuel leasing programs while aiming to expand offshore wind projects. This shift highlights a broader transition to a green economy where job creation in renewable energy sectors is prioritised.
“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.” – two people familiar with the plans
Beyond environmental advocacy, Biden’s actions reflect a broader acknowledgment of the outdated nature of current leasing systems, which have facilitated misdemeanors and ineffective accountability. Policy recommendations now include updating bonding requirements and royalty rates, ensuring a secure financial structure for future operations.
Pres. 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. The move relies on a law that could make it difficult for the Trump administration to reverse it.https://t.co/okSfgVnDlN
— Victor Narro (@NarroVictor) January 3, 2025
Economic Considerations and Political Challenges
The financial ramifications are not negligible. Federal leasing previously generated $4.2 billion in royalties in a single fiscal year, supporting state budgets, notably in New Mexico, reliant on oil revenue. Concerns arise for how these states will adapt to the economic shifts. The transition to a renewable economy is crucial but must tread carefully to mitigate impacts on regions reliant on oil and gas revenue.
“It’s also crystal clear that the zero carbon, zero pollution economy is coming. Even oil and gas majors are planning for that future. To weather that change, New Mexico needs a transition plan with a predictable glide path for producers and robust investments in the communities where our energy veterans have produced our country’s transportation fuels.” – Senator Martin Heinreich
This strategic use of historical legislation provides a window into Biden’s focus on crafting policy that is as much about future resilience as immediate impact. By potentially reshaping economic landscapes and signaling a pivot toward sustainability, the current administration intends to leave a lasting mark on America’s environmental and policy legacy.
Sources
1. The Ins And Outs Of Biden’s Federal Oil Leasing Ban
2. Biden Expected to Permanently Ban Oil Drilling in Some Federal Waters
