Biden’s Offshore Drilling Ban and Can Trump Overturn It?

In the final days of his administration, President Joe Biden has issued a ban on new offshore oil and gas drilling across most U.S. federal coastal waters. This action encompasses over 625 million acres, including the East and West coasts, the eastern Gulf of Mexico, and parts of Alaska's Northern Bering Sea. The primary objective is to protect these regions from potential environmental harm associated with drilling activities.

1) Impact on Oil and Natural Gas Production in 2025 and Beyond

The immediate effect on oil and natural gas production is expected to be minimal. The areas targeted by the ban are not currently significant contributors to U.S. oil and gas output. Notably, the central and western Gulf of Mexico, which account for nearly 15% of the nation's oil production, remain unaffected by this ban.

However, the long-term implications could be more substantial. By restricting future exploration and development in these offshore areas, the ban may limit potential increases in domestic oil and gas production. This could influence the U.S. energy market, especially if global demand rises or if there are disruptions in other supply channels. Additionally, the ban aligns with broader environmental and climate objectives, potentially accelerating the transition toward renewable energy sources.

2) Affected Areas and Major Operators

The ban covers extensive coastal regions, including:

• The entire U.S. East Coast

• The Pacific coasts of Washington, Oregon, and California

• The eastern Gulf of Mexico

• Parts of Alaska's Northern Bering Sea

Currently, these areas have limited or no active offshore drilling operations. Major oil and gas companies have primarily focused their offshore activities in the central and western Gulf of Mexico, which are not impacted by this ban. Therefore, existing operations of major industry players are unlikely to be directly affected.

3) Can Trump Reverse It? Reversing the ban could prove challenging:

• Executive Authority: 
  Biden used the Outer Continental Shelf Lands Act (OCSLA) to enact the ban. Trump could issue an executive order to reverse it, but legal hurdles may arise (expect environmental groups to file lawsuits, potentially delaying or blocking the reversal).

• Legal Challenges: Courts previously ruled that OCSLA withdrawals are permanent unless overturned by Congress, potentially delaying or blocking Trump’s efforts.

• Congressional Action: Congress could pass legislation to override Biden’s order, but this would require Republican control and sufficient votes to bypass filibusters.

• Administrative Delays: Even if reversed, reopening leasing involves environmental reviews and public comment periods, potentially delaying new drilling for years.

Trump can attempt to overturn Biden’s offshore drilling ban, but legal, environmental, and procedural obstacles could complicate the process. A lasting reversal may depend on congressional action.