Policy explainer: what Biden’s executive orders mean for US GoM and what limits future actions
The Biden administration has long emphasised that addressing climate change will be a priority. Early steps have now been taken that have an impact on US Gulf of Mexico’s upstream sector. Two executive orders that target the issuance of new leases and drilling permits were issued. Both are short term in duration. Permanent changes are harder to predict. With exact policy details forthcoming, we assess the feasibility of any policy changes and revisit scenarios analysed last year. Some would be met with roadblocks or legal challenges. While regulation is likely to become more restrictive in the Biden administration, a total shutdown of oil and gas exploration and production has not been indicated.