On January 6, the Financial Associated Press reported (editor: Shi Zhengcheng) that the Biden administration in the USA issued a statement on Monday announcing an indefinite ban on new offshore oil drilling development in the country's Pacific and Atlantic coastal areas.

The Trump team immediately criticized this, and the Oil & Gas industry also expressed concern about this difficult-to-reverse policy, calling for Trump to intervene.

There is no need to drill for oil there.

The White House statement indicated that under the authorization of the Outer Continental Shelf Lands Act, President Biden is issuing two presidential memoranda to indefinitely block the auction of new Oil & Gas exploration leases along the eastern Atlantic coast, the eastern Gulf of Mexico (near the Florida coast), and the western Pacific coast. At the same time, portions of the North Bering Sea climate resilient area in far northwest Alaska have also been included, making the entire region designated as a no-auction lease area.

This rule does not affect leases that have already been auctioned. Oil companies currently hold about ten development leases in the eastern Gulf of Mexico and about thirty leases in the federal waters off southern California.

Overall, Biden has removed 0.625 billion acres of US waters from the Oil & Gas development market in one go. The Outer Continental Shelf Lands Act is a law from 1953 that manages undersea land energy leasing issues in US territorial waters. Unlike presidential executive orders that could be easily revoked by a future Trump, the waters removed through this act do not provide subsequent presidents with a means to overturn.

Biden stated in a declaration: "Drilling in these waters could cause irreversible damage to the places we cherish, and meeting US energy needs does not require taking such risks. It's not worth it."

The US President also emphasized that the fossil fuel potential in these areas is minimal, insufficient to justify new leases and drilling activities, and the environmental, SZSE Public Health 50 Index and economic risks involved are not reasonable.

It is reported that gas-rich Cook Inlet in Alaska, as well as the central and western areas of the Gulf of Mexico, are not affected by the latest policy, as these areas provide 14% of the USA's oil and gas supply.

Trump's team and oil companies have publicly criticized the action.

Although Trump and Republican politicians from coastal states have also supported banning offshore drilling activities, the incoming White House press secretary, Caroline Levitt, has nonetheless openly criticized the Biden administration.

She stated on the X platform: "This is a shameful decision aimed at retaliating against the American people for authorizing President Trump to increase drilling and lower oil prices. Rest assured, Joe Biden will fail, we will 'drill, baby, drill.'"

"Drill, baby, drill" is a well-known campaign slogan of Trump, aiming to significantly increase the USA's Crude Oil Product capacity. However, against the backdrop of weak crude oil prices, it may be difficult for oil companies to meet the expectations of the next president of the USA regarding production increases.

The Oil & Gas Industry also expressed opposition to this measure, arguing that although there is little interest from the industry in developing these areas, such a large-scale restriction may weaken the USA's Energy potential.

Eric Milito, president of the USA's Ocean Industry Association, stated that a comprehensive ban sets political barriers to "the USA's own resources." Milito emphasized that while there may be no current willingness to develop certain areas, it is crucial for the federal government to maintain flexibility in energy policy, especially in response to unexpected changes such as the Russia-Ukraine conflict.

Mike Sommers, CEO of the USA's Oil Association, issued a statement claiming that USA voters clearly conveyed support for domestic Energy development, but the current government is doing everything possible to restrict development at the final moment of its term. The USA's Oil Association urges policymakers to use all available tools to reverse this decision driven by political motives.

Trump had attempted to overturn a similar decision made by former President Obama in 2017, but after being dismissed by a local court, nothing further occurred.

Editor/ping