Oregon’s Offshore Drilling Ban Sparks Clash with Trump’s Energy Vision
Days before relinquishing the American Presidency to Donald Trump, President Joe Biden outlawed offshore drilling affecting 625 acres of federal waters – a move slated by the American Petroleum Institute as politically motivated.
Offshore Drilling in Oregon Outlawed Until 2030
Meanwhile, Oregon outlawed offshore drilling in state waters six years ago and has a measure to maintain the ban until 2030.
Biden used the authority given him by the Outer Continental Shelf Lands Act to outlaw future oil and natural gas leasing along the East and West coasts. The ruling applies to the Eastern Gulf of Mexico and portions of the Northern Bering Sea in Alaska.
Oregon banned offshore drilling in April 2019, when the federal government wanted to open 90 percent of federal waters to oil exploration.
Then Governor Kate Brown signed a measure extending a temporary 10-year ban on offshore drilling in the state to 2030.
Ocean Economy is Worth $2.5 Billion Annually to Oregon
The ocean economy of Oregon is worth $2.5 billion yearly and supports 33,000 jobs, according to the National Ocean Economics Program.
The state sectors that stand to lose the most from oil spills are tourism, recreation, and fishing, where more than 25,000 people are employed.
While there is currently no oil production in the state, the U.S. Department of the Interior has identified a possible operation site off the coast of Oregon and Washington.
Oregon, like California, has taken action to protect its coastal economy, while Washington is also drawing up oil spill prevention legislation. Other states involved in similar moves include Hawai’i and Atlantic states.
Experts Say Biden Ban Will Not Reap Benefits for Americans
Experts say Americans will not reap any benefits from Biden’s ban on drilling in coastal waters. An energy policy expert at Oregon State University, David Bernell, said the areas selected by Biden were not major oil and gas producers and that the impact of the drilling ban would be negligible.
Although America produces over 13 million barrels of oil daily, it is not energy-dependent, consuming 18 to 20 million barrels daily.
Currently, crude oil costs around $73 a barrel, and experts believe the way to drive down gas prices is for OPEC to increase production. They say that an additional million barrels daily would successfully drive down the cost domestically.
While they agree that Trump could try to open federal waters to oil and gas leasing by changing the Outer Continental Shelf Lands Act, connecting offshore federal leases to a budget reconciliation bill was a better option. Such a move would need a simple majority to succeed.