Biden to issue sweeping offshore oil and gas drilling ban, could slow Trump's priorities
President Biden is moving to block about 625 million acres of offshore areas from future oil and gas drilling, the White House announced Monday morning.
Why it matters: The sweeping actions β which drew strong criticism from the oil industry β may hinder President-elect Trump's ability to quickly deliver on plans to scale up fossil fuel production.
- The steps rely on a provision from a 72-year-old law and affect wildlife-rich areas in the northern Bering Sea; eastern Pacific Ocean off the West Coast; the eastern Gulf of Mexico; and areas up and down the East Coast.
Driving the news: The steps, in the form of two presidential memos, are designed to permanently protect vast tracts of offshore lands to potentially benefit states dependent on fisheries and tourism.
- Withdrawing hundreds of millions of acres β equivalent in size to the states of Alaska, California and Colorado β from potential leasing may also help limit greenhouse gas emissions that are causing global warming.
Unlike executive orders that Trump could overturn with the stroke of a pen, Biden's actions rely on an open-ended provision in the 1953 Outer Contintental Shelf Lands Act.
- This law governs energy leasing activities for submerged lands under U.S. control that are beyond three miles from shore.
- A provision in the act allows the president to permanently take parts of the Outer Continental Shelf off the table for leasing activities, without providing a means for another president to undo the action.
What they're saying: "Congress and the incoming administration should fully leverage the nation's vast offshore resources as a critical source of affordable energy, government revenue and stability around the world," American Petroleum Institute President Mike Sommers said in a statement.
- "We urge policymakers to use every tool at their disposal to reverse this politically motivated decision and restore a pro-American energy approach to federal leasing."
Between the lines: Kevin Book of research firm ClearView Energy Partners told Axios in an email that congressional Republicans could include a provision reinstating some or all of the offshore areas in any filibuster-proof budget reconciliation bills.
The big picture: Biden is portraying the steps as part of his environmental legacy, which has included major climate legislation and land conservation efforts.
- "As the climate crisis continues to threaten communities across the country and we are transitioning to a clean energy economy, now is the time to protect these coasts for our children and grandchildren," Biden said in a statement.
Yes, but: Many of the regions to be protected are locations that the oil and gas industry had either not shown strong interest in for development. Other protections would apply to places where states put up stiff resistance against drilling.
- This applies particularly to California and Florida, both of which have consistently opposed offshore drilling.
- During Trump's first term, he exempted a region from North Carolina to Florida from drilling for 10 years, given political opposition to such activities in these coastal states.
- The industry has largely backed off from expensive forays into Arctic drilling, including the Bering Sea where there are no active or pending lease sales.
- However, human-caused Arctic climate change is making the region far more accessible for development and shipping routes, and could entice companies to explore for fossil fuel resources in coming years.
Friction point: Oil and gas companies have shown interest in drilling in the eastern Gulf of Mexico, where significant resources are thought to be accessible.
- That makes the designation of this region as off limits to be particularly notable and potentially controversial, even with Florida's opposition to offshore drilling for environmental reasons.
- The use of the law, which grants the president broad power to alter the regions subject to oil and gas leasing, is likely to be tested in court.
- One district court ruling from 2019, which involved a step taken during the Obama administration, held that only Congress could overturn a president's use of the provision within the law.
The bottom line: While Trump can still move forward with plans to boost land-based oil and gas production, he will now face new legal hurdles on offshore drilling.