Ban on Oil and Gas Development in Some Coastal Waters
Based on the 1953 Outer Continental Shelf Lands Act
President Can Designate but Cannot Revoke
Targeting Trump's Fossil Fuel Drilling Expansion Policy
U.S. President Joe Biden is reportedly set to issue an executive order before leaving office that bans oil and gas development in certain U.S. coastal waters. Once a specific area is designated as off-limits for development, fossil fuel drilling is permanently prohibited under the relevant law. Analysts suggest that this move by President Biden, a supporter of green energy, is a blow to the incoming President-elect Donald Trump's policy of expanding oil and gas drilling.
Bloomberg News reported on the 2nd (local time), citing anonymous sources, that “President Biden plans to announce an executive order within days that prohibits the sale of new drilling leases in parts of the outer continental shelf belonging to U.S. territory.” Some Democratic lawmakers and environmental groups supporting green policies have long urged President Biden to implement measures restricting new fossil fuel drilling.
The executive order President Biden is preparing is based on the Outer Continental Shelf Lands Act enacted in 1953. This law grants the president the authority to prohibit oil and gas drilling in specific areas. This could put a brake on President-elect Trump's campaign promise to double fossil fuel production during last year’s election.
Bloomberg predicted, “If the executive order is issued, it will certainly complicate President-elect Trump's ambitions to accelerate domestic energy production.” This is because the law does not provide for the president to revoke designated off-limits areas. Once the president designates a specific area for protection, it is considered a permanent measure.
During his first term in 2019, President-elect Trump attempted to overturn the Obama administration’s executive orders that designated parts of the Arctic and Atlantic Ocean as off-limits for oil and gas development, but courts rejected this based on the law.
President Biden has limited opportunities for offshore oil and gas development by the fossil fuel industry during his term. A notable example is the program introduced in July 2022 that allowed only three offshore oil and gas lease auctions over the next five years. This is the lowest number ever. The Republican Party is considering measures to increase these oil lease sales to offset the costs of extending tax relief laws expiring this year.
The fossil fuel industry immediately opposed the news of President Biden’s upcoming executive order. Daniel Turner, founder of Power the Future, a group supporting the fossil fuel industry, strongly criticized, saying, “This is an attack on American energy,” and “President-elect Trump must overturn this order on his first day in office. President Biden’s green agenda should be sent to the dustbin of history.”
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