In a significant move that could reshape the energy landscape, the White House announced a permanent ban on offshore oil and gas drilling in multiple areas, including parts of the U.S. outer continental shelf. The ban, which cannot be easily reversed by subsequent administrations, marks a shift in prioritizing environmental conservation over fossil fuel extraction. This decision is expected to have repercussions on the domestic natural gas supply chain, potentially driving the growth of green hydrogen and other sustainable hydrogen pathways. President Biden's executive order aims to safeguard coastal communities and marine ecosystems by protecting vast oceanic areas from future offshore drilling activities. This move, which covers significant portions of the U.S. coastline, is positioned as a strategic step to mitigate the risks associated with oil spills and other impacts of offshore drilling, benefiting industries like fishing, tourism, and recreation. Furthermore, the ban on offshore drilling is projected to influence gas production in regions like the Gulf of Mexico, prompting a shift towards alternative sources for hydrogen production. By diversifying the hydrogen supply chain through methods like water electrolysis, biomass, and biogas, the U.S. aims to reduce its reliance on natural gas extraction and promote cleaner energy alternatives. In parallel, the U.S. Treasury Department's recent Final Rule on clean hydrogen production tax credits highlights the importance of carbon capture systems in defining 'clean' hydrogen from natural gas. While this requirement can increase costs, it also signals a potential shift towards favoring sustainable hydrogen production methods in the energy sector. Overall, these developments indicate a growing emphasis on transitioning towards cleaner energy sources and reducing the environmental impacts associated with traditional fossil fuel extraction practices.