With just two weeks left in his term, President Biden announced the largest ban on new offshore oil and gas drilling. The executive action will block the sale of new leases for more than 625 million acres of ocean, nearly 20 percent of all the seabed controlled by the United States. The ban would primarily affect the Atlantic and Pacific coasts as well as Eastern portions of the Gulf of Mexico.

Attacks on the Oil and Gas Industry

This ban comes after the Biden administration’s long tenure of rejecting U.S. energy security by hampering offshore production with the weakest offshore program in history. For the first year and a half of Biden’s presidency there were no new oil or natural gas leases. And since 2022, the Biden administration has been threatening to reduce or eliminate offshore leasing entirely, despite Biden’s own Department of Interior finding that doing so would not be good for consumers and would increase U.S. dependence on foreign oil. Secretary Deb Haaland even conceded that she doesn’t take into consideration rising energy prices when imposing deeply restricted offshore programs:

“When we are talking about our five-year plan and our job at the Interior, we don’t take cost into consideration in that respect, because we’re focusing on managing our natural resources.” (emphasis added)

Even after illegally delaying the offshore leasing program for over a year, the administration included the lowest number of auctions in the program’s history. By the end of 2023, E&E News found that offshore permits hit a 19-year low under President Biden.

A proposed rule to further limit offshore production in 2023 under the guise of protecting the Rice’s whale saw bipartisan opposition from 16 senators and judicial blowback.

 “In designating any particular area as a critical habitat, [the National Marine Fisheries Service (NMFS)] is required to use the best available science to consider the economic impact, the impact on national security, and any other relevant impact. Unfortunately, NMFS failed to do so in this case, vastly underestimating the proposed rule’s economic and national security impacts. Moreover, the proposed rule denies the public the opportunity to comment on the studies used in the proposed rule’s analysis.” (emphasis added)

Of course, the administration hasn’t just targeted offshore leases. They have also reduced onshore leasing, increased costs for developing energy resources on federal lands, unveiled a new tax on natural gas, and implemented the widely criticized pause on liquified natural gas (LNG) export approvals, all moves that  jeopardize American jobs and U.S. energy security.

Widespread Criticism

The ban on new offshore oil and gas drilling is widely seen as just the latest action in this long campaign of targeted attacks against the oil and gas industry.

Independent Petroleum Association of America (IPAA) Offshore Committee Chairman Ron Neal, the President of Houston Energy L.P. and CEO of HEQ Deepwater, called the ban “significant and catastrophic” and “a major attack on the oil and gas industry” in a press release.

“This move is a first step towards more extensive restrictions all across our industry in all U.S. basins including the onshore. If the activists come for anything, they are coming for everything.” (emphasis added)

President-elect Donald Trump has already spoken out against the ban. In an interview with Hugh Hewitt, President Trump said “It’s ridiculous; I’ll unban it immediately. I have the right to unban it.” However, overturning the ban could be challenging — likely requiring an act of Congress.

Trump’s call for increased oil and gas production comes at a time when Americans and our allies need reliable, affordable energy. Despite the many benefits of unleashing American production, the Biden administration continues to hamper U.S. energy security.

Erik Milito, president of the National Ocean Industries Association, said:

“With global demand continuing to rise, there’s always uncertainty about where the supply is going to continue to come from. You don’t want to take options off the table where it could bolster our economic and national security.” (emphasis added)

Other industry leaders also called on the incoming administration and the new session of Congress to reverse the decision and put American energy dominance back on track.

American Petroleum Institute President Mike Sommers invoked the results of the November election, highlighting how Americans voted for energy dominance, not against it:

“American voters sent a clear message in support of domestic energy development, and yet the current administration is using its final days in office to cement a record of doing everything possible to restrict it. 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. 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.”

Congressional Republicans were also critical of Biden’s ban. Senator Mike Lee (R-Utah) who now leads the Senate Energy and Natural Resources Committee said that Senate Republicans would “push back” against the ban “using every tool at our disposal.”

Rep. Bruce Westerman (R-Arkansas), chairman of the House Natural Resources Committee similarly said:

“While the federal deficit grows, President Biden’s decision to lock away 625 million acres of future energy potential undermines one of our nation’s greatest revenue streams — energy receipts, second only to income taxes. In the 119th Congress, we will use every tool, including reconciliation, to restore and unleash these revenues.”

Bottom Line: After years of working to slow down offshore oil and gas production, the Biden administration announced the largest ban on new offshore leases which will only harm U.S. energy dominance and energy security. Despite repeated evidence about the importance of offshore production and its low-carbon benefits, the Biden administration continues to ignore energy experts in favor of appeasing environmental activists.