Biden Set to Prohibit New Offshore Drilling Along Majority of US Coastline
The shift could complicate Republican attempts to accelerate lease sales for oil and gas exploration in federal waters.
On Monday, Biden is expected to announce the withdrawal of 625 million acres from future drilling activities. This area includes the entire Atlantic Coast, the eastern Gulf of Mexico, the Pacific coast from Washington to California, and portions of Alaska's Northern Bering Sea, according to a source familiar with the matter who was not authorized to speak publicly.
This decision is set to ignite a conflict over offshore energy as President-elect Donald Trump plans to ramp up domestic oil and gas production to fulfill his promise of halving U.S. energy costs within the first 18 months of his presidency.
Biden's ban on leasing will utilize the powers granted under the Outer Continental Shelf Lands Act, which survived its major legal test when a federal court in 2019 blocked the Trump administration's attempt to reverse an Obama-era withdrawal of drilling areas off the coast of Alaska. This ruling complicates Trump's ability to reverse Biden’s forthcoming action, leaving Congress as the only avenue for repeal.
The White House and the Interior Department did not respond to requests for comment.
While most areas covered by the presidential memorandums have shown limited interest from the oil and gas industry, the eastern Gulf of Mexico is believed to contain significant untapped oil reserves. Exploration in that region has faced opposition from officials in Florida across party lines, including Trump, who prohibited leasing there through 2032 in a 2020 memorandum.
Republicans are working on broad spending legislation likely to include stipulations demanding the Interior Department accelerate oil and gas lease sales—particularly in the Gulf of Mexico, which accounts for 14 percent of U.S. oil production. They plan to maneuver these measures through budget reconciliation, enabling the bill's passage with a simple majority in both chambers and circumventing the need for Democratic support.
However, experts predict Florida Republicans might utilize their party's slim majority to reinforce the prohibition on leasing in the eastern Gulf of Mexico, potentially securing a final win for Biden and his environmental initiatives.
Jenny Rowland-Shea, director of public lands at the Center for American Progress, noted, “These are areas where drilling is not popular, and these people want to see their coastal economies protected, their wildlife protected.” She expressed skepticism regarding Republicans' ability to open drilling in previously non-drilled regions without encountering significant opposition.
Trump's prior actions aimed at preventing leasing off the coast of Florida and along South Carolina and Georgia recognized existing opposition in those coastal states. Energy industry executives claimed that Trump’s restrictions were more targeted, while Biden’s would be more permanent. They argued that increasing global oil and gas demand means that blocking U.S. production simply shifts it to countries with less stringent environmental regulations.
Dustin Meyer, senior vice president at the American Petroleum Institute, stated, “Voters made their views clear about the importance of American energy yet the Biden administration’s misguided approach continues to undermine our nation’s energy advantage.”
Republicans anticipate advocating for new oil and gas lease sales as a means to finance their budget reconciliation package, which aims to extend expiring tax cuts and bolster immigration enforcement, according to a Republican congressional aide familiar with ongoing negotiations. However, sales are expected to target areas with minimal opposition rather than regions like the Atlantic Coast.
The divide among House Republicans over Florida’s opposition to opening the eastern Gulf of Mexico complicated their efforts to push through their key energy legislation, H.R. 1, last Congress. Florida representatives sought assurances against drilling to support expanded leasing elsewhere in the Gulf, revealed a former Republican aide who requested anonymity to discuss internal deliberations.
“The eastern Gulf was a real challenge during H.R. 1, and with a smaller majority they’re going to need everything they can in order to get members to the table,” the aide noted, suggesting Florida Republicans' continuing resistance might re-emerge during reconciliation discussions.
Environmental advocates hope Florida and other coastal Republicans will break ranks if the caucus attempts to mandate lease sales and reverse Biden's actions. Nonetheless, this does not prevent Republicans from pursuing more lease sales in areas unaffected by Biden's order, such as the central and western Gulf of Mexico.
Joseph Gordon, climate and energy campaign director at Oceana, commented, “Although there will certainly be an effort and there will be expansion of drilling likely under their leadership, they also didn't drill in a lot of these areas.” He expressed optimism about bipartisan opportunities to safeguard coastal regions.
The potential for increased lease sales through legislation would follow a trend established by the Inflation Reduction Act, which mandated regular lease sales in the central and western Gulf of Mexico. Although Republicans accuse Biden of stalling this process, the oil and gas industry may contest a total ban in the Atlantic and Pacific Oceans in court, even if they presently lack interest in drilling those areas.
An energy industry lobbyist remarked that while the nation’s most lucrative production sites are in the Gulf of Mexico, some producers are eyeing portions of the eastern Gulf where they could leverage existing infrastructure from the central Gulf.
Navid Kalantari contributed to this report for TROIB News