Impact of Biden’s Offshore Drilling Ban on New Mexico’s Oil Industry

New Mexico –President Joe Biden’s announcement on Monday of a sweeping 628 million-acre ban on offshore oil and gas drilling has sparked both applause and criticism. While President-elect Donald Trump vowed to “unban it immediately,” the practicalities of reversing such a decision remain uncertain.

For New Mexico, the second-largest oil producer in the U.S., the ban doesn’t have immediate implications. However, energy advocates suggest it could have future consequences, regardless of whether the ban stands or is overturned.

Biden issued two presidential memoranda to halt future oil and gas leasing in U.S. Outer Continental Shelf areas along the East and West coasts, the eastern Gulf of Mexico, and parts of the Northern Bering Sea. The total area impacted by the ban is approximately 628 million acres. Notably, it doesn’t affect much of the Gulf of Mexico, where the bulk of U.S. offshore drilling takes place.

Biden explained that his decision was driven by concerns over the potential irreversible damage to coastal communities, businesses, and beachgoers. “Drilling off these coasts could cause irreversible damage to places we hold dear and is unnecessary to meet our nation’s energy needs,” Biden stated. “It is not worth the risks.”

Also Read – Northridge Residents Outraged After Christmas Day Car Vandalism

While New Mexico’s Permian Basin—its most productive oil basin—will not be directly impacted, the ban could eventually have ripple effects, according to Larry Behrens, communications director for the national energy nonprofit Power the Future. Behrens speculated that producers may look to compensate for the potential offshore supply deficit, which could lead to higher oil and gas prices. However, he noted that the situation’s evolution remains uncertain, especially given the pending legal and policy challenges.

Behrens and many other conservative voices have criticized Biden’s move, calling it a punitive action that aligns with his environmental agenda. Some even argue that it’s part of a larger push to limit fossil fuel production. The ban is unlikely to be easily reversed, as it would likely require an act of Congress to repeal, making Trump’s promised undoing more challenging.

On the other side of the debate, some groups point out that U.S. oil and gas production is at a record high under the Biden administration, with drilling permits continuing to be approved. The Center for Western Priorities highlighted that the industry holds more than 10 million acres of unused drilling leases on public lands, including 4,401 approved but unutilized permits in New Mexico, according to the Bureau of Land Management.

Aaron Weiss, deputy director for the Center for Western Priorities, argued that the outrage over the offshore drilling ban doesn’t make sense when there are vast areas of public land still available for drilling. Additionally, Weiss noted that Trump had already implemented a decade-long moratorium on drilling in waters off Florida, Georgia, and South Carolina coasts in 2020, which remains in effect until 2032.

Also Read – Toyota to Build $922M Paint Facility at Georgetown Plant by 2027

Weiss described offshore drilling as a politically charged issue, particularly along the eastern seaboard, calling it a “political third rail.”

Despite the criticisms, the ban provides a sense of certainty to coastal communities, assuring them that drilling and potential oil spills will not jeopardize their shores. “With today’s action, President Biden continues to build a great conservation legacy,” said Jennifer Rokala, executive director of the Center for Western Priorities. “This will protect hundreds of coastal communities from the dangers of oil and gas drilling.”

In the end, whether Biden’s ban remains or Trump successfully overturns it, the impact on the oil industry, coastal communities, and the nation’s energy future will continue to evolve in the coming years.