On January 6, 2025, the White House made a historic move by permanently closing 625 million acres of federal waters to oil and gas leasing, citing environmental concerns and the limited fossil fuel potential in these areas. The decision was made under President Joe Biden’s authority through Section 12(a) of the Outer Continental Shelf (OCS) Lands Act, effectively blocking new oil and gas leasing on U.S. Outer Continental Shelf areas off the East and West coasts, the Eastern Gulf of Mexico, and parts of the Northern Bering Sea in Alaska.

This action represents one of the most significant environmental protection efforts taken by the Biden administration, as it safeguards large swaths of coastal waters that are crucial for biodiversity and climate resilience. The closure impacts approximately 334 million acres off the U.S. Atlantic coast, extending from Canada to Florida, where there is no active oil or gas development. It also affects nearly 250 million acres off the Pacific Coast, from Washington state to California, aimed at preserving marine life and ecosystems. Additionally, 44 million acres of the Northern Bering Sea, located in northwest Alaska, have been withdrawn from leasing.

The move comes amid mounting pressure to combat climate change and transition toward a clean energy economy. President Biden emphasized the urgency of protecting these coastal regions for future generations. “As the climate crisis continues to threaten communities across the country and we are transitioning to a clean energy economy, now is the time to protect these coasts for our children and grandchildren,” Biden said in a statement.

However, the decision has drawn sharp criticism from the fossil fuel industry, which argues that it could harm U.S. energy security and economic interests. Industry groups such as the National Oceans Industries Association (NOIA) and the American Petroleum Institute (API) have expressed their dissatisfaction, even though oil and gas development interest in these areas has historically been limited. Erik Milito, president of NOIA, warned that restricting access to these areas might inadvertently benefit foreign oil producers, including countries like Russia, by transferring energy production abroad. API President Mike Sommers called the decision a “strategic error” that risks jeopardizing the benefits of a robust domestic energy sector.

The timing of the closure is seen as a strategic effort to protect environmental priorities before President Biden completes his term. The White House’s approach also limits the ability of a potential future administration, such as that of President-elect Donald Trump, to reverse the policy easily. By invoking the OCS Lands Act, rather than an executive order, the Biden administration has created a barrier that would require Congress to overturn the decision.

While some argue the closure is a politically motivated action, others point out that the U.S. has continued to see record levels of oil production, particularly in the Gulf of Mexico. According to the U.S. Energy Information Administration, the nation produced about 675 million barrels of oil and 796 billion cubic feet of gas from the Outer Continental Shelf in 2024, accounting for about 14% of U.S. oil production.

Ultimately, the move highlights the Biden administration's commitment to climate action, signaling a continued shift away from fossil fuel dependence while fostering a clean energy transition.