H.R. 408: To nullify the Presidential memoranda on the withdrawal of certain areas of the outer Continental Shelf from oil or natural gas leasing.

This bill, known as H.R. 408, aims to revoke specific Presidential memoranda that have prohibited oil or natural gas leasing in certain areas of the outer Continental Shelf (OCS) of the United States. The key points of the bill are as follows:

Nullification of Presidential Memoranda

The bill specifically targets two Presidential memoranda issued on January 6, 2025, which are:

• Memorandum on the Withdrawal of Certain Areas of the United States Outer Continental Shelf from Oil or Natural Gas Leasing (this includes regions in the Gulf of Mexico, Atlantic Ocean, and Pacific Ocean).
• Memorandum on the Withdrawal of Certain Areas of the United States Outer Continental Shelf from Oil or Natural Gas Leasing (this pertains to the Northern Bering Sea Climate Resilience Area).

By nullifying these memoranda, the bill would effectively allow for oil and gas leasing activities in the previously restricted areas.

Impact and Implications

This legislation aims to reverse the current policies that protect designated marine areas from development related to oil and natural gas extraction. The intention is to open these areas back up for potential leasing opportunities, which could lead to increased energy exploration and extraction activities. The bill does not specify how the execution of these leases would be conducted, nor does it address any environmental or regulatory reviews that typically accompany such actions.

Political Context

The bill was introduced by Mr. Arrington and is currently referred to the Committee on Natural Resources in the House of Representatives. The motivation for this bill likely relates to economic development and energy independence, as well as the potential for job creation associated with increased oil and gas production.

Relevant Companies

• XOM (Exxon Mobil Corporation): As a major oil and gas company, Exxon could benefit significantly from new leasing possibilities in these areas.
• CVX (Chevron Corporation): Similar to Exxon, Chevron has substantial interests in offshore oil exploration and could gain from access to new leasing areas.
• BP (BP plc): BP is also involved in offshore operations and could see opportunities arise from the lifting of leasing restrictions.
• SLB (SLB Ltd.): SLB provides equipment and services for oil and gas exploration, and their business could expand with increased drilling activities resulting from new leases.