Campaign promises get broken all the time. Don't tell me you're upset that Joe Biden screwed over the Environmentalist either. By the time his term was complete, Oil, LNG, Exports ofall kinds of refined products, as well as Renewables were all at record highs, and the USA was more energy independent than ever before.
Biden created a shortage by driving up the cost of energy by suppressing supply below demand.
During his presidency, Joe Biden has implemented oil restrictions primarily through executive actions to block new offshore drilling leases in large areas of U.S. waters. However, his administration has also approved some major drilling projects and presided over record oil production.
Offshore drilling restrictions
In January 2025, just before leaving office, Biden issued memoranda to permanently withdraw over 625 million acres of federal waters from new oil and gas leasing.
The restrictions apply to major parts of the U.S. coastline:
- Entire U.S. East Coast: This covers approximately 334 million acres, protecting it from future leasing.
- Pacific Coast: Roughly 250 million acres off the coasts of California, Oregon, and Washington are now off-limits.
- Eastern Gulf of Mexico: This area, with potentially significant oil reserves, is now permanently protected from new drilling.
- Alaska's Northern Bering Sea: A portion of this region is also included in the withdrawal.
Impact and potential challenges
While significant, the practical impact of these bans on short-term U.S. oil production is limited:
- The newly withdrawn areas have seen very little, if any, historical oil and gas activity.
- The restrictions do not affect existing leases, which cover millions of acres, especially in the productive Central and Western Gulf of Mexico.
- Most U.S. oil production occurs on private or state lands, which are not impacted by federal leasing policy.
Inconsistencies and political debate
Despite his climate focus, the Biden administration has faced criticism for some mixed policies on oil and gas:
- Approved major projects: The administration approved the controversial Willow oil project in Alaska in 2023.
- Presided over high production: U.S. oil production from federal lands and waters reached a record high under Biden, though some argue this was driven by market factors and existing leases.
- Political conflict: President-elect Trump and the oil industry have criticized the restrictions, with Trump vowing to "unban it immediately". However, legal precedent suggests that revoking such a ban is not a simple executive action and would likely face legal challenges.
Long-term policy shifts
Beyond drilling, the Biden administration's broader energy strategy has included:
- Renewable energy investment: Significant investment in renewables, including ambitious goals for offshore wind.
- Methane regulations: The administration has worked to curb methane emissions, though these have faced potential rollbacks.
- Fuel standards: The administration has pursued new tailpipe emissions standards to push the auto industry toward electric vehicles.
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The Official U.S. Senate website of Senator Dan Sullivan of Alaska
www.sullivan.senate.gov
This client alert provides a brief overview of President Biden’s recent decision to expand the ban on offshore oil and gas leasing, outlining its background, scope, and potential impact on the energy industry The First 100 Days
www.whitecase.com