U.S. President Joe Biden is poised to solidify his environmental legacy by issuing a landmark executive order to permanently ban new offshore oil and gas development in specific U.S. coastal waters. This move, which is expected within days, represents a significant step in Biden’s broader strategy to combat climate change and safeguard fragile marine ecosystems.
The anticipated executive order will reportedly prohibit the sale of new drilling rights in portions of the Outer Continental Shelf, a federally controlled area that spans millions of acres along the U.S. coastline. While the exact regions to be protected remain unclear, discussions suggest the Pacific Ocean near California and the eastern Gulf of Mexico off Florida may be focal points.
Crucially, the order would not impact existing leases, meaning ongoing drilling operations and previously approved developments will continue unabated. However, by permanently barring new leases in these areas, Biden seeks to lock in protections that are difficult to reverse, even by a successor with opposing views.
Outer Continental Shelf Lands Act
The authority for Biden’s move stems from the 1953 Outer Continental Shelf Lands Act (OCSLA), which grants the president wide discretion to withdraw areas of the Outer Continental Shelf from leasing. Historically, presidents from Dwight Eisenhower to Barack Obama have invoked OCSLA to safeguard ecologically sensitive marine zones.
While OCSLA does not explicitly empower a president to rescind a predecessor’s withdrawal, courts have generally upheld such protections. In 2019, for instance, a federal court blocked then-President Donald Trump’s attempt to revoke Obama-era protections in Arctic and Atlantic waters, reinforcing the durability of these designations.
Proponents of Biden’s policy argue it is essential for mitigating the risks of offshore oil spills, which can devastate marine ecosystems and the economies of coastal communities reliant on fishing and tourism. Joseph Gordon, campaign director at Oceana, underscored the importance of preserving coastal resilience. “Our coastlines support millions of Americans and generate billions in economic activity dependent on healthy ecosystems,” he said.
Biden’s move aligns with his broader environmental agenda, which includes aggressive reductions in greenhouse gas emissions and a transition to renewable energy sources. His administration has already limited offshore lease sales, approving just three auctions over the next five years—a historic low.
Reactions
The oil and gas sector has expressed fierce opposition, warning that the restrictions could jeopardize national energy security. Daniel Turner, founder of Power The Future, characterized the ban as a politically motivated attack on American energy.
“President Trump should overturn this order on the first day,” Turner called, “and quickly usher Biden’s green agenda into the dustbin of history.”
Industry advocates also argue that U.S.-produced oil and gas are extracted under stricter environmental standards than in many other countries, making domestic production a relatively cleaner option in a world still heavily reliant on fossil fuels.
The decision has sparked intense political debate. If challenged, the order could face legal battles that test the limits of presidential authority under OCSLA. However, past court rulings suggest that Biden’s approach is likely to withstand judicial scrutiny.
Offshore drilling remains a contentious issue among Americans. A 2023 Pew Research Center survey revealed that fewer than half of respondents supported expanding offshore oil and gas activities, with opposition particularly strong in coastal states. Bipartisan concerns about the risks to tourism and fisheries underscore the divide between economic and environmental priorities.
Biden’s action comes as part of a broader push to protect public lands and waters. His administration has proposed new national monuments in California and halted industrial mining leases in Nevada’s Ruby Mountains. To date, Biden has preserved more lands and waters than any other U.S. president, reinforcing his commitment to conservation amid escalating climate threats.
While the president’s green agenda has drawn praise from environmental groups, it faces criticism from some sectors for not going far enough to meet global climate targets. Calls for additional measures, such as phasing out existing offshore leases and expanding protections, continue to mount.
Information for this briefing was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
