Oil & Gas

President Biden announced on Monday a permanent ban on new oil and gas drilling across more than 625 million acres of U.S. coastal waters. He stated that the decision was motivated by the environmental, public health, and economic risks posed by drilling to coastal communities. The ban, a significant move to bolster his environmental legacy, aims to block drilling on approximately 20% of the nearly 3.2 billion acres of seabed controlled by the United States. Using an obscure provision of the 1953 Outer Continental Shelf Lands Act, Biden’s executive order prevents new drilling along the Eastern Seaboard, the Pacific Coast, the eastern Gulf of Mexico, and the Northern Bering Sea in Alaska.

The ban is partly symbolic, as some of the restricted areas have seen little to no recent drilling activity. For instance, California’s coastline has not experienced significant oil and gas exploration since a devastating oil spill near Santa Barbara in 1969. Arctic federal waters currently host just one facility in the Beaufort Sea. Additionally, the eastern Gulf of Mexico has been under a moratorium since 2006, and former President Trump imposed a temporary ban on Atlantic coast drilling during his 2020 reelection campaign. Nonetheless, Biden’s decision reflects his belief that the environmental and economic risks of new leasing and drilling outweigh the minimal fossil fuel potential in these areas.

While the executive order excludes the central and western Gulf of Mexico, which remains a significant hub for U.S. oil and gas production, Biden’s administration has limited offshore lease sales to three over the next five years—the fewest in history. Coastal communities and environmental advocates hailed the ban as a crucial step toward reducing fossil fuel dependence and protecting ecosystems and economies reliant on clean oceans. Representative Frank Pallone of New Jersey called the decision a “common sense win” that safeguards industries like fishing and tourism while protecting endangered species like the North Atlantic right whale.

The ban has drawn sharp criticism from the oil and gas industry, with some executives warning it could harm energy security and economic stability. Environmental groups argue that halting new oil and gas development is essential to limiting global warming to within safe thresholds. While Republicans and industry leaders may attempt to challenge the ban through legislative or legal means, experts note that Biden’s use of the Outer Continental Shelf Lands Act may provide a strong legal foundation. The decision highlights the ongoing tension between environmental protection and energy policy as the nation grapples with the climate crisis and its energy future.