Biden bans new offshore drilling along most of U.S. coastline

President Joe Biden said in a statement that he is taking action to “protect the entire U.S. East coast, the eastern Gulf of Mexico, the Pacific off the coasts of Washington, Oregon, and California, and additional portions of the Northern Bering Sea in Alaska from future oil and natural gas leasing. In protecting more than 625 million acres of the U.S. ocean from offshore drilling, President Biden has determined that the environmental and economic risks and harms that would result from drilling in these areas outweigh their limited fossil fuel resource potential. With these withdrawals, President Biden is protecting coastal communities, marine ecosystems, and local economies – including fishing, recreation, and tourism – from oil spills and other impacts of offshore drilling… Using his authority under Section 12(a) of the Outer Continental Shelf Lands Act, President Biden is issuing two Presidential Memoranda to protect all U.S. Outer Continental Shelf areas off the East and West coasts, the eastern Gulf of Mexico, and additional portions of the Northern Bering Sea in Alaska from future oil and natural gas leasing. The withdrawals have no expiration date, and prohibit all future oil and natural gas leasing in the areas withdrawn. President Biden first used this authority in January of 2021 when he restored protections for part of the Northern Bering Sea, and again in March 2023 to withdraw 2.8 million acres of the Beaufort Sea from future oil and gas leasing, which completed protections for the entire U.S. Arctic Ocean.” The action will safeguard three distinct ocean and coastal regions: The entire eastern U.S. Atlantic coast and the Eastern Gulf of Mexico; The Pacific Coast along California, Oregon, and Washington; and The remaining portion of the Northern Bering Sea Climate Resilience Area in Alaska. “Drilling off these coasts could cause irreversible damage to places we hold dear and is unnecessary to meet our nation’s energy needs. It is not worth the risks,” Biden said in a statement. Publicly traded companies in the space include Baker Hughes (BKR), Diamond Offshore (DO), Halliburton (HAL), Nabors Industries (NBR), Noble Corp. (NE), SLB (SLB), Transocean (RIG) and Weatherford (WFRD).