US to Expand Domestic Oil Production
The United States will be expanding domestic oil production in the country to reduce its dependence on imported oil and to bring down prices of fuel, said US President Barrack Obama.
To accomplish this, new leases for exploration were scheduled to be granted each year to Alaska’s National Petroleum Reserve and to the oil and gas fields in the Atlantic Ocean.
President Obama’s proposal came after the Republicans in Congress presented a series of bills that would expand and speed up offshore oil and gas drilling.
It was his way of showing the Americans that he understood their concern about rising prices. He prioritized fixing the price of fuel first because it has been uncontrollably spiking in the recent months.
President Obama said that he believes that though America reached its highest level in producing oil for the last seven years in 2010, it should still continue to expand production even as it increases safety and environmental standards.
For him, investing in clean, renewable sources of energy are the ultimate solution to high gasoline prices.
With this, Obama encouraged the Congress to back proposals to end taxpayer subsidies to highly profitable oil companies.
Despite the BP oil spill in the Gulf of Mexico in 2010, Obama said the Gulf is still a core part of America’s future energy supply and new incentives will be offered for on and offshore development.
Meanwhile, leases that are already held but adversely affected by the president’s moratorium on drilling, imposed after the BP spill, would be eligible for extensions, Mr. Obama said.