Biden Expands Offshore Drilling Ban: Minimal Industry Impact Expected
The measure is part of Biden’s pledge to conserve 30% of U.S. lands and waters by 2030. However, industry analysts note that these areas have historically seen little interest from energy companies.
President Joe Biden has signed an executive order expanding a previous offshore drilling ban to over 625 million acres of U.S. waters, extending restrictions to the East and West coasts, the eastern Gulf of Mexico, and Alaska's northern Bering Sea. The move builds on a 2020 ban issued by then-President Donald Trump but is expected to have minimal immediate impact on the oil and gas industry.
The measure is part of Biden’s pledge to conserve 30% of U.S. lands and waters by 2030. However, industry analysts note that these areas have historically seen little interest from energy companies. Most U.S. oil production occurs onshore in the Permian Basin or offshore in the western and central Gulf of Mexico, leaving the newly restricted areas largely untapped.
“It would take decades to develop these regions for drilling,” said David Dismukes, an energy economist at Louisiana State University. He noted that while restricting areas limits long-term resource availability, the immediate implications for the energy sector are minimal.
Industry and Political Reactions
Republicans, including Trump, criticized the order, framing it as harmful to energy independence. Trump spokeswoman Karoline Leavitt called the decision "political revenge," pledging to overturn the ban if Trump regains the presidency. Reversing the order could spark protracted legal challenges.
Despite opposition, the Biden administration has overseen higher oil and gas production levels than the Trump years, according to the U.S. Energy Information Administration (EIA). Still, industry groups argue that blanket bans hinder U.S. energy security and economic competitiveness.
“Decisions like these transfer production opportunities to foreign adversaries, strengthening their economies at our expense,” said Erik Milito, president of the National Ocean Industries Association.
A Limited Economic Reach
Historically, offshore lease sales in the eastern Gulf have failed to result in commercial production, the Bureau of Ocean Energy Management reports. Biden’s ban excludes federal waters near Louisiana and Texas, where most offshore activity is concentrated.
Tommy Faucheux of the Louisiana Mid-Continent Oil and Gas Association condemned the move, stating it undermines the nation's energy independence and economic vitality. However, Biden’s order may indirectly benefit Louisiana’s drilling sector by preserving demand in its active regions.
As Biden’s restrictions have no expiration date, they contrast Trump’s earlier order, which limited drilling in the eastern Gulf through 2032. The debate underscores the complex balance between environmental conservation and energy development, with both sides anticipating long-term effects that could reshape the nation’s energy landscape.
