An energy industry expert has stated that, despite the praise and criticism surrounding President Joe Biden’s executive order banning offshore drilling across large portions of the U.S. coastline, the impact of the measure on oil and gas exploration in the near term is expected to be minimal.
Biden’s move expands on a similar ban issued by President-elect Donald Trump five years ago. On Monday, Biden signed two memoranda to permanently prohibit offshore drilling across more than 625 million acres of ocean, as part of his broader commitment to conserving 30% of U.S. lands and waters by 2030, according to a White House statement.
The ban applies to future drilling along the entire East and West coasts, the eastern Gulf of Mexico, and parts of Alaska’s Northern Bering Sea where drilling had still been allowed. However, these areas had already been subject to some restrictions, and drilling interest in these regions had been limited.
David Dismukes, a professor at LSU and energy sector economist, noted that Biden’s decision will likely have little impact in the short term. “Most oil production in the U.S. comes from the Permian Basin, and only a small fraction comes from offshore drilling,” he explained. “It would take decades to develop drilling operations in areas like the eastern Gulf of Mexico, the Atlantic, and parts of Alaska, so this decision is not going to have much of an immediate effect.”
Dismukes pointed out that while the restrictions are not overly detrimental in the short term, they do limit long-term resource availability. He also emphasized that the move highlights the Biden administration’s stance against the oil and gas industry.
Republicans quickly responded to Biden’s announcement, with former President Donald Trump vowing to reverse the ban if he were to be re-elected. However, reversing such an executive order could lead to a lengthy legal battle. Trump’s spokesperson, Karoline Leavitt, criticized Biden’s decision, claiming it was politically motivated and detrimental to the American people. “Rest assured, Joe Biden will fail, and we will drill, baby, drill,” Leavitt said.
Despite Biden’s ban, U.S. oil and gas production has reached record levels during his presidency, according to data from the U.S. Energy Information Administration (EIA). Trump himself had imposed a similar offshore drilling ban in 2020, which restricted drilling in the eastern Gulf of Mexico through 2032.
Biden’s ban is permanent but does not cover federal waters off the coasts of Louisiana and Texas, areas that have seen the most offshore drilling interest. According to the Bureau of Ocean Energy Management, despite numerous lease sales in the eastern Gulf, none of them have resulted in commercial production.
Erik Milito, president of the National Ocean Industries Association, expressed concern that blanket bans could harm U.S. energy policy flexibility, especially in light of unforeseen global events like the Russian invasion of Ukraine. He warned that such policies could inadvertently benefit foreign energy producers, like Russia, at the expense of U.S. interests.
Industry groups with ties to Louisiana, a state heavily reliant on offshore drilling, have strongly opposed the ban. Tommy Faucheux of the Louisiana Mid-Continent Oil and Gas Association argued that Biden’s decision undermines the nation’s energy security and economic stability, as offshore drilling is crucial for providing reliable, affordable energy for American families and businesses.
Previous acts of Congress and executive orders, including the Gulf of Mexico Energy Security Act of 2006 and Trump’s 2020 executive order, have already restricted drilling in various parts of the Gulf of Mexico, as well as along the West Coast, the East Coast, and parts of Alaska.
