Trump orders U.S. waters open to oil drilling, reversing Biden

(Bloomberg) – U.S. President Donald Trump revoked offshore oil and gas leasing bans that effectively blocked drilling in most U.S. coastal waters as he made sweeping moves his first hours in office to unleash American energy development.

Trump’s move came as part of a broad assault on executive orders issued by former President Joe Biden, including revoking his recent decision to bar drilling rigs in some 625 million acres of coastal waters. 

The shift wouldn’t immediately trigger new offshore lease sales — and environmentalists are vowing to fight it in federal court. Oil companies have also displayed little interest in tapping most of the areas Trump moved to put back in play for leasing. 

Even so, congressional Republicans are eyeing new offshore oil auctions as a way to raise federal revenue that can help offset the cost of extending the 2017 tax cuts.

It could take years — if ever — for Trump’s move to result in new oil and gas development, and it’s not clear it will survive legal challenges. Nevertheless, the effort underscores the new president’s commitment to a frequent campaign pledge: to unlock more of America’s vast stories of energy.

Trump’s action also responds to the wishes of one of his top constituencies: the oil and gas industry that’s long sought more drilling opportunities on federal lands and waters.

Industry leaders argue oil and gas will be needed for decades, especially given the predicted surge in electricity demand from artificial intelligence. When American resources are developed, energy executives say they come with a smaller carbon footprint than fossil fuels from elsewhere around the world.

Trump is “moving swiftly to chart a new path where U.S. oil and natural gas are embraced, not restricted,” said Mike Sommers, head of the American Petroleum Institute.