Biden to ban new oil and gas field development, Bloomberg reports

According to Bloomberg, US President Joe Biden is planning to implement a ban on opening new offshore oil and gas drilling projects along America's coastlines. The move is expected to be announced on January 6.

Specifically, this decision bars the sale of drilling rights in the Atlantic and Pacific Ocean waters, including those in the eastern part of the Gulf of Mexico.

Biden's upcoming announcement, scheduled for January 6, is expected to solidify his reputation as a climate champion by strengthening his commitment to conservation and clean energy sources.

The move follows a series of actions taken by the White House just before President Donald Trump's inauguration to safeguard ecosystems and conservation efforts.

There are several reasons why this decision may not be in Trump's favor.
1. Economic Implications: The financial implications of such a decision could be devastating for the nation's economy. It would not only affect businesses and investors but also the average American citizen, as inflation could rise, and the value of the currency could depreciate.

Unlike other steps President Biden has taken to curb the growth of fossil fuels and reduce the emissions of carbon dioxide gases contributing to climate change, this action could have significant and lasting effects, sending a major roadblock to Trump's goal of increasing domestic oil and gas production.

Biden's planned proclamation is based on a 72-year-old provision of federal law that gives presidents the authority to remove US waters from oil drilling leases without needing to formally cancel them.

According to the authors, this decision will not impact drilling or other operations already covered under existing lease agreements.

The article notes that this also provides an opportunity for Republican lawmakers to move forward with further offshore oil lease sales in the central and western Gulf of Mexico, allowing them to generate revenue to help offset the expense of extending tax cuts.

Environmentalists have said that the President's decision will block oil companies from accessing reserves in the eastern part of the Persian Gulf and the southern region of the Pacific Ocean, two areas where the industry has traditionally been interested. According to them, this move is in line with the increasing public push for reduced offshore oil exploration.

Supporters of the oil industry claim that the proposed actions would actually reduce the country's energy supply, despite the United States being on the cusp of a significant spike in electricity demand from data centers, artificial intelligence, and manufacturing operations.

Journalists point out that Trump could attempt to reverse Biden's actions, similar to the move he made to undo President Barack Obama's withdrawal decisions early in his own presidency. However, in a previous attempt in 2019, Trump's effort was blocked by a federal district court.

Some of the waters targeted by Biden overlap with areas in Florida and the southeast region that Trump temporarily removed from oil and gas leasing in late 2020. According to the media outlet, Trump's withdrawals are set to end in 2032.

According to previous reports, the Biden administration is poised to impose harsher oil trade restrictions on Russia. This move is part of a wider effort to intensify pressure on Russia's defense sector, coinciding with the potential for Donald Trump to regain his post as President.

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