financetom
Business
financetom
/
Business
/
Explainer-Can Trump overturn Biden's offshore drilling ban?
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Explainer-Can Trump overturn Biden's offshore drilling ban?
Jan 21, 2025 3:17 AM

(Reuters) - President Donald Trump in an executive order on Monday revoked a ban imposed by former Democratic President Joe Biden on new offshore oil and gas development along most of the country's coastlines. Trump is certain to face legal challenges over his authority to do so.

WHAT DID BIDEN AND TRUMP DO?

Biden on Jan. 6 used his authority under the 70-year-old Outer Continental Shelf Lands Act to withdraw all federal waters off the East and West coasts, the eastern Gulf of Mexico and portions of the northern Bering Sea in Alaska from oil and gas drilling.

Biden said the move aligned with his efforts to combat climate change, saying "drilling off these coasts could cause irreversible damage to places we hold dear and is unnecessary to meet our nation's energy needs."

Trump had long pledged to expand oil and gas development. He revoked the offshore drilling ban on Monday, one of dozens of actions taken by Biden that Trump repealed on his first day in office.

Trump also revoked an earlier action Biden took in March 2023 that prevented oil and gas drilling in 2.8 million acres in the Arctic Ocean.

CAN TRUMP DO THAT?

Legal experts say the question of whether a president can revoke a predecessor's decision to invoke the Outer Continental Shelf Lands Act (OCSLA) and withdraw areas from mineral leasing and drilling remains legally unsettled.

While the law expressly grant presidents the authority to set aside lands, the 1953 measure is silent on whether they are able to revoke prior decisions. The question has only ever been addressed once in court, during Trump's first administration.

WHAT WAS THAT CASE?

Environmental groups sued after Trump, in April 2017, issued an executive order designed to revoke a similar decision by Democratic former President Barack Obama. Obama invoked OCSLA and put the Arctic's Chukchi Sea, part of the Arctic's Beaufort Sea off-limits to oil leasing, along with a large swath of Atlantic Ocean off the U.S. East Coast.

In 2019, U.S. District Judge Sharon Gleason in Anchorage ruled Trump's order was unlawful. "Had Congress intended to grant the President revocation authority, it could have done so explicitly, as it had previously done in several (but not all) of its previously enacted upland laws," she wrote.

Trump's administration in defending his order had cited language in the OCSLA stating that a president may "from time to time" withdraw unleased lands, saying this carried with it an authority to revise prior withdrawal decisions.

But Gleason, an Obama appointee, in her ruling said the OSCLA left only Congress with the power to overturn withdrawals of land.

Before the San Francisco-based 9th U.S. Circuit Court of Appeals could rule on the Trump's administration's appeal of her decision, Biden took office and on his first day revoked Trump's order, mooting the case.

WILL TRUMP'S NEW ORDER END UP IN COURT AS WELL?

Trump's executive order to undo Biden's action will likely invite a new legal challenge from environmentalists and potentially settle the question of a president's revocation authority.

But Biden's order itself is already being challenged in court in two separate lawsuits, including one by five Republican state attorney general and two industry trade groups American Petroleum Institute and the Gulf Energy Alliance and another by Republican Texas Attorney General Ken Paxton, alongside oil and natural gas producer W&T Offshore.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
UBS to pay $300 million to resolve US mortgage securities cases
UBS to pay $300 million to resolve US mortgage securities cases
Aug 3, 2025
ZURICH (Reuters) -UBS on Monday said it will pay $300 million to settle outstanding obligations related to the misselling of mortgage-linked investments by Credit Suisse in the United States. On August 1, Credit Suisse Securities entered into an agreement with the U.S. Department of Justice to resolve all of Credit Suisse's outstanding consumer relief obligations under the 2017 settlement for...
German finance minister to push for steel quotas on Washington trip
German finance minister to push for steel quotas on Washington trip
Aug 3, 2025
BERLIN (Reuters) -German Finance Minister Lars Klingbeil will advocate for a quota system on steel exports to be included in the EU's trade deal with the United States at a meeting with his U.S. counterpart, Scott Bessent, later on Monday, he told a radio broadcaster. There is talk of a quota system for steel, and it would be good if...
UK's Senior reports 10% rise in profit on civil aerospace and defence demand
UK's Senior reports 10% rise in profit on civil aerospace and defence demand
Aug 4, 2025
Aug 4 (Reuters) - British engineering firm Senior reported a 10% rise in first-half adjusted operating profit on Monday, helped by its aerospace division on robust civil aerospace and defence demand. Rising air travel demand, driven by growing disposable income along with increased defence spending amid heightened geopolitical tensions, has benefited firms like Senior, a key supplier to Boeing (...
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved