President Biden plans to permanently ban new oil and gas drilling in federal waters, utilizing a 70-year-old law to fortify his environmental agenda against future challenges.
At a Glance
- Biden aims to use the 1953 Outer Continental Shelf Lands Act to ban drilling in large sections of Atlantic and Pacific oceans
- The ban is designed to be difficult for future administrations to reverse without congressional action
- This move follows a series of executive actions pausing new oil and gas leases on federal lands and waters
- The decision is seen as a victory for environmental advocates but may face opposition from the oil and gas industry
Biden’s Strategic Legal Maneuver
President Biden is set to make a bold move in his climate change agenda by permanently banning new oil and gas drilling in significant portions of federal waters. The administration plans to invoke a provision from the 1953 Outer Continental Shelf Lands Act, which grants the president broad authority to withdraw federal waters from future oil and gas leasing. This strategic use of a decades-old law aims to create a lasting impact on environmental policy that could withstand potential challenges from future administrations.
The decision builds upon a series of executive actions taken by Biden early in his presidency. These actions included pausing new oil and gas leases on federal lands and waters, establishing a National Climate Task Force, and setting ambitious goals for offshore wind energy production. The administration’s approach reflects a commitment to addressing climate change through regulation of federal land use, which contributes significantly to U.S. greenhouse gas emissions.
Legal Precedent and Environmental Impact
The use of the Outer Continental Shelf Lands Act to implement this ban follows a precedent set by former President Obama, who used the same law to ban offshore drilling in parts of the Arctic and Atlantic Oceans. Importantly, the Act does not provide a mechanism for future presidents to revoke such a ban without congressional action. This legal framework was tested when President Trump attempted to undo Obama’s ban, but a court ruled that it could not be reversed without Congress’s involvement.
“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 said.
Environmental advocates view this decision as a significant victory in the fight against climate change. By preventing future oil and gas exploration in these areas, the administration aims to reduce the country’s long-term reliance on fossil fuels and promote the transition to renewable energy sources. This aligns with Biden’s broader climate goals, including the expansion of offshore wind projects and the creation of jobs in the renewable energy sector.
Economic Implications and Industry Response
The permanent ban on new drilling in federal waters is likely to have substantial economic implications. Federal leasing generated $4.2 billion in royalties in fiscal year 2019, with significant contributions to state budgets, particularly in states like New Mexico. The oil and gas industry, which has long benefited from access to federal lands and waters, is expected to oppose this decision vigorously.
“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 said.
However, the administration emphasizes the potential for job creation in the renewable energy sector as part of their desired, but so far mythical, transition to a green economy.
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
Reforming the Federal Leasing System
Biden’s decision comes amid growing criticism of the federal oil and gas leasing system. Reports have highlighted issues such as companies engaging in bad-actor behaviors, including abandoning wells and dodging payments. The Department of the Interior has stated that “the program falls short of serving the public interest in a number of important respects,” underscoring the need for reform.
Proposed changes to the system include increasing bond requirements, raising royalty rates, and implementing a prioritization system for leasing. These reforms aim to hold the industry more accountable and ensure that public lands are managed in the best interest of all Americans, not just oil and gas companies. As the Biden administration moves forward with its climate agenda, the tension between environmental protection and energy production will likely remain a central issue in American politics and policy-making.
