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Offshore? Not So Fast: Biden’s New Drilling Block

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Offshore drilling rig during daytime.

 
On January 6, President Biden announced an executive action affecting offshore drilling prior to the end of his term.1Jennifer A. Dlouhy, Biden to Ban More Offshore Oil Drilling Before Trump Arrives, Bloomberg News (Jan. 2, 2025), https://www.bloomberg.com/news/articles/2025-01-02/biden-to-block-more-offshore-oil-drilling-before-trump-arrives?utm_source=website&utm_medium=share&utm_campaign=copy. Biden has issued a decree that will “permanently ban” new offshore oil and gas development in large portions of United States coastal waters.2Id. In a White House Press Briefing on Friday, January 3, White House Press Secretary Karine Jean-Pierre stated that a ban would be consistent with the Administration’s goal of protecting the environment.3Press Briefing by Press Secretary Karine Jean-Pierre, The White House (Jan. 3, 2025), https://www.whitehouse.gov/briefing-room/press-briefings/2025/01/03/press-briefing-by-press-secretary-karine-jean-pierre-77/.

The Outer Continental Shelf Lands Act

The Outer Continental Shelf Lands Act (“OCSLA”) is a U.S. Federal Law that gives the Federal government jurisdiction, control, and power of disposition over the subsoil and seabed of the Outer Continental Shelf of the United States.443 U.S.C.A. § 1332 (1) (West). Under OCSLA, the Secretary of the Interior has the responsibility for administering exploration and development in the Outer Continental Shelf of both energy and non-energy materials.543 U.S.C.A. § 1334 (a) (West). This is done through regular lease sales, wherein the Secretary is to grant the highest responsible bidder any oil and gas lease on the submerged lands of the outer Continental Shelf.643 U.S.C.A. § 1337 (a) (1) (West). Prior to bidding, the Secretary will propose a lease schedule indicating the size, timing, and location of the lease activity, based on the energy needs over a five-year period, contingent on yearly reapproval.743 U.S.C.A. § 1344 (a) (1) (West). Under OCSLA, the President has the power to withdraw any unleased land from the outer Continental Shelf.843 U.S.C.A. § 1341 (a) (West).

The Protected Areas

The White House has stated that 625 million acres of ocean will be protected through OCSLA, including areas off the East and West Coast, the eastern Gulf of Mexico, and portions of the northern Bering Sea in Alaska.9 Reuters, Biden to ban offshore oil, gas drilling in vast areas ahead of Trump term, Reuters (Jan. 6, 2025, 8:26 a.m.), https://www.reuters.com/business/energy/biden-ban-offshore-oil-gas-drilling-vast-areas-ahead-trump-term-2025-01-06/. Most important to oil and gas producers, the Gulf of Mexico generates about 97% of all U.S. Outer Continental Shelf oil and gas production,10BOEM’s Gulf of Mexico OCS Region, Bureau of Ocean Energy Management (n.d.), https://www.boem.gov/regions/gulf-mexico-ocs-region/. as well as 14% of total U.S. crude oil production and 5% of total U.S. natural gas dry production.11Gulf of Mexico Fact Sheet, U.S. Energy Information Administration (Sept. 4, 2024), https://www.eia.gov/special/gulf_of_mexico/.

The Gulf of Mexico Outer Continental Shelf Region is broken up into three planning areas:

  1. the Western Planning Area (off the coast of Texas),  
  2. the Central Planning Area (off the coast of Louisiana, Mississippi, and Alabama), and
  3. the Eastern Planning Area (off the coast of Florida).12BOEM Gulf of Mexico OCS Region Blocks and Active Leases by Planning Area January 2, 2025, Bureau of Ocean Energy Management (Jan. 2, 2025), https://www.boem.gov/sites/default/files/documents/oil-gas-energy/leasing/regional-leasing/gulf-mexico-region/GOMR-Active-Lease-Map.pdf.

The Eastern Planning Area, which is one of the targeted locations, only has thirteen leases, totaling 74,880 acres leased.13Id. With a total of 64,357,859 acres in the Eastern Planning Area, a large amount of the Gulf of Mexico Outer Continental Shelf Region was removed by President Biden through OCSLA.14Id.

Previous Curtails of the Offshore Leasing Program by President Biden

President Biden has already imposed restrictions on offshore drilling opportunities. In December of 2023, the Department of Interior published the 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Program.15BOEM Announces Next Steps for Gulf of Mexico Oil and Gas Leasing Program, Bureau of Ocean Energy Management (Dec. 6, 2024), https://www.boem.gov/newsroom/press-releases/boem-announces-next-steps-gulf-mexico-oil-and-gas-leasing-program. This Leasing Program only includes three sales for offshore oil and gas drilling, all in the Gulf of Mexico.16Nichola Groom & Jarrett Renshaw, Biden angers all sides with scaled back offshore oil drilling plan, Reuters (Sept. 29, 2023, 2:57 PM), https://www.reuters.com/markets/commodities/us-plans-sharp-reduction-offshore-oil-gas-auctions-2023-09-29/. This is the lowest number in any five-year plan since the government began publishing these reports in 1980.17Id. President-elect Trump is expected to rewrite the leasing plan; however, the process could take over a year.18Dlouhy, supra note i.

Potential Actions to be Taken by President-Elect Trump

President-elect Trump’s Press Secretary Karoline Leavitt has already responded to President Biden’s move, stating that Biden’s efforts would fail after Trump takes office.19Zach Jewell, ‘Disgraceful Decision’: Trump Press Secretary Blasts Biden’s Move To Block More Offshore Drilling, The Daily Wire (Jan. 3, 2025), https://www.dailywire.com/news/disgraceful-decision-trump-press-secretary-blasts-bidens-move-to-block-more-offshore-drilling. However, this is not the first time Trump has tried reversing protections under OSCLA. During his first term in office, then-President Trump issued an Executive Order trying to reverse former President Obama’s withdrawal of 128 million acres of federally owned land in the Arctic and Atlantic Oceans.20Tim Briscoe, To Do, and Not to Undo: The Issue of Presidential Authority Under the Outer Continental Shelf Lands Act, Environmental Law Institute (Nov. 29, 2017), https://www.eli.org/vibrant-environment-blog/do-and-not-undo-issue-presidential-authority-under-outer-continental-shelf. Within days, environmentalists challenged the Executive Order in the federal district court for the District of Alaska.21Id. On March 29, 2019, the district court vacated Section 5 of the Executive Order and required that the Trump Administration act in conformity with former President Obama’s withdrawal.22League of Conservation Voters v. Trump, 363 F. Supp. 3d 1013 (D. Alaska 2019). This decision was appealed to the Ninth Circuit Court of Appeals and by the time the case was argued and submitted on June 5, 2020, President Biden had already revoked President Trump’s Executive Order, therefore rendering the issue moot.23League of Conservation Voters v. Biden, 843 F. App’x 937 (9th Cir. 2021).

Though there have been modifications made to prior decisions as to which areas could be subject to oil and gas leasing under OCSLA, no court has ever validated a complete reversal of a withdrawal.24Fact sheet: President Biden protects Atlantic and Pacific coasts from offshore oil and gas drilling, The White House (Jan. 6, 2025). https://www.whitehouse.gov/briefing-room/statements-releases/2025/01/06/fact-sheet-president-biden-protects-atlantic-and-pacific-coasts-from-offshore-oil-and-gas-drilling/. Prior to President Trump, no president had ever attempted a complete reversal, so the success of future attempts is still possible.25Id.

Official Announcement Made January 6

The decision was officially announced Monday, January 6.26Reuters, supra note i. Climate advocates are praising the decision, while oil industry advocates have warned against the new restrictions.27Dlouhy, supra note ix. President-elect Trump immediately condemned the action, calling it “ridiculous” and claiming that he will “unban it immediately.”28David Goldman, et al., Biden Permanently Bans Offshore Drilling in 625 Million Acres of Ocean, Making a Trump Reversal Difficult, CNN Business (Jan. 6, 2025), https://www.cnn.com/2025/01/06/business/biden-offshore-drilling-ban-trump/index.html. Regardless of whether Trump can or cannot undo the ban, it ultimately may not make much of a difference in US oil production. If anything, the ban is likely to push more production to onshore shale plays, which set new records under the Biden administration.

 

Baylee focuses on surface use issues, oil and gas lease analysis, and curing title defects. During law school, Baylee clerked at Oliva Gibbs, where she gained experience working on upstream energy title and transactional matters, providing a solid foundation for her transition to associate attorney at the firm.

Baylee is actively involved in her community and participates in various programs and events with the Houston Bar Association, the Houston Young Lawyers Association, and the Houston Alpha Delta Pi Alumnae Association. In her free time, Baylee enjoys exploring new walking trails with her dog Milo and trying out new Houston restaurants.

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