In a move that has polarized much of the energy sector, President Joe Biden, in the final days of his presidency, has made a significant decision to indefinitely block oil and gas development across 625 million acres of federal waters, a decision that encompasses areas off the East, West, and Gulf coasts, as well as off the coast of Alaska. This covers approximately 40% of the estimated undiscovered economically recoverable oil and gas resources on the US outer continental shelf according to ClearView Energy Partners, based on an assessment by the Bureau of Ocean Energy Management.
Liam Denning provides an in-depth analysis of this development, suggesting that this decision might not have as much substantive impact as it might appear. The reasoning is partly due to the practical implications: the oilfields mentioned were never likely to be drilled in the near future. Therefore, the decision might be more rooted in politics than actual energy policy changes. The full analysis by Denning can be explored here.
Yet, the larger question remains whether Biden’s late-term policy shift will hold significant weight given the complex interplay of executive power and congressional oversight. This move is emblematic of the larger national discourse on energy policy and environmental stewardship, which continues to oscillate with changing administrations. As Biden prepares to leave office, his policy is likely to be examined not just for its current efficacy but also for its long-term implications on U.S. energy independence and environmental protection efforts.