Last-Ditch Regulatory Effort Likely To Face Heavy Opposition From Incoming Congress, President
In a last-ditch effort to cement his legacy of over-regulation, President Obama has moved to ban drilling along wide sections of the Atlantic and Arctic seaboard. As the New York Times reports, Obama “invoked an obscure provision of a 1953 law, the Outer Continental Shelf Lands Act, which he said gives him the authority to act unilaterally.” NPR reports Obama banned two areas, the first the Atlantic encompassing 6,000 square miles stretching from New England to Virginia. The second area is in the Arctic off the northern coast of Alaska. It covers the entirety of the Chukchi Sea and most of the Beaufort Sea, except for a strip along the northern coast where production activity already exists. The AP reports the statute says “the president of the United States may, from time to time, withdraw from disposition any of the unleased lands of the outer Continental Shelf.” Fox News said “Obama appears to be trying to tie the hands of his successor,” while CNN sees Obama’s actions preventing “any future president from taking swift action to reopen oil exploration in restricted areas” and CNBC predicts the issue “could get tied up” in court “throughout much” of the next four years. Bloomberg Politics similarly reports that “the move…is sure to draw a legal challenge,” and that “there is scant legal precedent on the matter.” President-elect Trump “may rescind Obama’s order, but the 1953 statute Obama is invoking doesn’t include an explicit provision for reversal and that question could be tied up in court for years.”
What This Means For Small Businesses
If President Obama’s move to act unilaterally and ban drilling along Atlantic and Arctic areas stands, it will cause untold harm to small businesses working in the energy sector. And even more broadly, a restriction on drilling limits the oil supply, which leads to higher prices at the gas pump for small businesses that depend on their vehicles. The measure will undoubtedly face strong opposition from Republicans in Congress and the incoming Trump Administration, who will hopefully work together to undo this and other regulatory burdens the Obama Administration has implemented that are harmful to small businesses.
Additional Reading
The Washington Post, the Los Angeles Times, USA Today also cover the story.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
