White house leaders, former President Trump, and others react to Biden's recent ban on offshore leasing across 625 million acres of U.S. oceans, and Murphy Oil Corp. announces a new oil discovery in Vietnam.
We attended a friend’s son’s wedding this past weekend in Galveston, TX. Witnessing the young couple’s happy union brought me to tears, as I was moved by the beauty of life and love.
Now, let’s dig into two pieces of energy news from last week.
Shangyou Nie
Editor, Well Read
Biden Bans Offshore Leasing Prior to White House Exit
ConsolidatedNews/ Shutterstock.com
Last Monday, President Biden permanently banned offshore drilling in 625 million acres of offshore area, including new leases on “the entire U.S. East coast, the eastern Gulf of Mexico, the Pacific off the coasts of Washington, Oregon, and California, and additional portions of the Northern Bering Sea in Alaska.”
From the White House:
“In protecting more than 625 million acres of U.S. oceans from offshore drilling, President Biden has determined that the environmental and economic risks and the harms that would result from drilling in these areas outweigh their limited fossil fuel resource potential,” the White House said in a statement.
“As the climatic 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,” said Biden.
During a press conference in Florida, Trump said that the estimated economic value from potential oil and gas resources in these offshore areas is between $40 and 50 trillion. “More than our national debt,” he said. “[Biden] is throwing it away.”
How the ban works:
President Biden is invoking the Outer Continental Shelf Lands Act of 1953 to remove these offshore areas from future oil and gas leasing.
The act stipulates that the President may “from time to time, withdraw from disposition any of the unleased lands of the Outer Continental Shelf.”
Biden’s order bars “consideration of withdrawn areas for any futureoil or natural gas leasing for purposes of exploration, development, and production.”
To reverse the decision, President Trump will need Congress to agree.
Implications:
The impact of this new ban will be limited for now, as there has been no recent drilling or leasing activity in most of these banned areas due to environmental and local concerns.
The ban does not impact oil and gas activities in the central and western part of the of Mexico, where most of the current U.S. offshore oil and gas activity is concentrated.
The eastern portion of the Gulf of Mexico in offshore Florida has been under a similar drilling ban since 2006.
Previous bans:
Past presidents, including George H.W. Bush, Barrack Obama, Bill Clinton, and Donald Trump have previously declared various bans for offshore leasing.
In December 2016, outgoing President Obama designated some areas in the Arctic and Atlantic “indefinitely off limits” to future oil and gas leasing.
In 2017, President Trump issued an executive order to reverse Obama’s ban, though a district court deemed his decision “unlawful” two years later, claiming that only Congress has the power to add areas back to the leasing program.
Before the 2020 election, President Trump also issued an executive order to remove offshore areas in Florida, Georgia, North and South Carolina, and Virginia from 2022 to 2032.
What leaders are saying:
The latest Biden ban is an “ill-conceived policy” and “a strategic error, driven not by science or voter mandate, but by political motives,” said Erik Milito, National Ocean Industries Association president.
“You need that ongoing supply of acres so that we can continue to be the energy superpower in the world,” said Mike Sommers, chief executive of American Petroleum Institute.
“I applaud President Biden’s decision to ban offshore drilling on the East Coast to ensure that our ocean is kept safe from oil spills and environmental devastation. On behalf of our fishermen, our seaside communities, and our ecosystem, thank you,” said Senator Ed Markey (D-MA) via X.
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American independent Murphy Oil Corp. announced the Hai Su Vang-1X exploration well in the Cuu Long Basin encountered 370 feet of net oil pay from two reservoirs.
About the discovery:
The Hai Su Vang-1X exploration well is located in Block 15-2/17 in the Cuu Long Basin, 64 kilometers offshore from Vietnam.
It was in 45 meters of water depth. The well drilled to a total depth of 4,001 meters.
Murphy is the operator and holds 40 percent equity. Its partners are state company Petrovietnam (35 percent) and South Korean private company SK Earthon (25 percent).
The pre-drilling resource estimate for the Hai Su Vang prospect is 170–430 million barrels of oil equivalent.
Murphy’s producing assets are located in onshore United States, onshore and offshore Canada, and offshore Gulf of Mexico. Its exploration ventures are in the Gulf of Mexico, Vietnam, and Ivory Coast.
Murphy has a market cap of $4.9 billion. Its share price has increased 9.3 percent since the beginning of 2025.
Murphy is also planning to drill the Lac Da Hong-1X exploration well in 2025. The prospect has an estimated resource potential of 65–135 million barrels of oil equivalent.
What’s next: Murphy and partners are evaluating drilling results and planning future appraisal drilling for the Lac Da Vang Field.
Broad implications: Murphy is one of the few remaining American independents with an international oil exploration program and has a history of successful exploration in Southeast Asia. It hopes to continue its track record with this new discovery.
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