
With just days remaining in office, President Joe Biden has cast uncertainty over President-Elect Donald Trump’s campaign promises of U.S. energy dominance. On Jan. 6, 2025, President Biden announced an executive action to permanently ban future offshore oil and gas development across 625 million acres of U.S. coastline, citing “irreversible damage” to coastal communities and assertions that such development is unnecessary to meet the nation’s energy needs.1
President Biden’s ban invokes the broad authority granted to presidents under Section 12(a) of the Outer Continental Shelf Lands Act, which allows for the withdrawal of federal waters from oil and gas leasing.2 The ban will effectively block oil companies from leasing waters for new drilling along the entire East Coast and the Eastern Gulf of Mexico, as well as the coasts of Washington, Oregon and California, and parts of Alaska’s Northern Bering Sea.3
In response, President-Elect Trump has pledged to reverse the ban on his first day in office, calling it “ridiculous.” However, reversing the ban may prove challenging. Though the law empowers presidents to withdraw federal waters, it does not explicitly authorize the revocation of such actions.4 Consequently, President-Elect Trump may need to rely on Congress to overturn President Biden’s ban.
Texas Republicans, echoing Trump’s sentiments, have voiced strong opposition to President Biden’s move.5 Should Texas be concerned?
Though the ban is presented as a comprehensive measure to protect coastal regions, its impact is expected to be largely symbolic. Historically, the areas affected by President Biden’s ban have seen little to no oil and gas production.6 Meanwhile, the ban notably leaves the Western and Central Gulf of Mexico untouched. These portions of the Gulf of Mexico, bordering Texas and Louisiana, remain prime locations for oil and gas production. Consequently, the impact on the U.S. oil supply and economy is expected to be minimal.
For Texas, a leader in the oil and gas sector, the exclusion of the Western and Central Gulf of Mexico from Biden’s ban is significant. Even if Biden’s ban is to remain in effect, Texas’ energy sector is poised to continue its role as a key contributor in the global oil and gas market.
Notes
1 The White House: “Memorandum on the Withdrawal of Certain Areas of the United States Outer Continental Shelf from Oil or Natural Gas Leasing” – hereinafter, “Biden Memorandum” (Jan. 6, 2025); The White House: “Statement from President Joe Biden on Protecting America’s Ocean and Coasts from Offshore Oil and Gas Drilling” (Jan. 6, 2025); The White House, FACT SHEET: “President Biden Protects Atlantic and Pacific Coasts from Offshore Oil and Gas Drilling” (Jan. 6, 2025).
2 43 U.S.C. § 1341(a).
3 Biden Memorandum; U.S. Department of the Interior, “Alaska Withdrawal” (January 6, 2025); Interior Department, “Pacific Gulf Atlantic Withdrawal” (January 6, 2025).
4 43 U.S.C. § 1341(a) (“The President of the United States may, from time to time, withdraw from disposition any of the unleased lands of the outer Continental Shelf.”).
5 See Sen. John Cornyn (R-Texas) (@JohnCornyn), X (Jan. 6, 2025, 9:03 a.m. CT); Rep. Troy Nehls (R-Texas) (@RepTroyNehls), X (Jan. 6, 2025, 11:32 a.m. CT).
6 Rachel Frazin, “What to know about Biden’s new offshore drilling restrictions,” The Hill (Jan. 7, 2025).
20 Posts in 20 Days Leading to Inauguration Day on Jan. 20
Our team is writing new blog posts each day leading up to President-Elect Donald J. Trump’s inauguration, with insights regarding likely impacts on the various segments of the industry, including aviation, construction, maritime, freight rail, motor carriers, transit and autonomous transportation. Bookmark our Election Impacts on Transportation & Infrastructure resource page to follow along.
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