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

In particular, this decision excludes the sale of drilling rights in the Atlantic and Pacific Ocean waters, as well as in the eastern part of the Gulf of Mexico.

Biden’s decision, which is expected to be announced on January 6, is reported to "further burnish his climate credentials" by deepening his record of promoting conservation and zero-emission energy.

It builds on a series of last-minute steps by the White House to protect lands and the environment before newly elected President Donald Trump takes office.

Why this decision is not favorable to Trump

Unlike other actions Biden has taken to limit fossil fuel development and greenhouse gas emissions causing climate change, "this move could have a long-term impact, complicating Trump’s plans to increase domestic oil and gas production."

"That’s because Biden’s planned proclamation is rooted in a 72-year-old provision of federal law that gives presidents broad discretion to withdraw US waters from oil leasing without explicitly authorizing revocations," Bloomberg notes.

However, as the authors report, this decision will not affect drilling or other activities under existing lease agreements.

"It also keeps a path open for Republican lawmakers to order more central and western Gulf oil lease sales as a way to raise revenue that could offset the cost of extending tax cuts," the article states.

Environmentalists have stated that Biden's move ensures oil companies will not be able to tap reserves in the eastern Persian Gulf and the southern part of the Pacific Ocean, which have long attracted the industry. They added that this protection aligns with growing public interest in limiting offshore oil drilling.

Meanwhile, supporters of the oil industry argue that the planned actions restrict the US energy capacity, even as the country stands on the brink of a sharp rise in electricity demand from data centers, artificial intelligence, and manufacturing.

Journalists clarify that Trump could order the reversal of Biden’s actions, just as he attempted to reverse President Barack Obama’s withdrawal decisions during his first term. However, Trump’s earlier attempt was rejected by a federal district court in 2019.

"Also, some of the waters that Biden is targeting overlap with territory near Florida and the southeast US that Trump himself temporarily withdrew from oil and gas leasing during the final weeks of the 2020 presidential campaign. Trump’s withdrawals are otherwise set to expire in 2032," the media outlet specifies.

As previously reported, the Biden administration is developing new, stricter sanctions on oil trade with Russia. This is part of an effort to increase pressure on Russia’s military industry ahead of Donald Trump's return to the White House.