As the public continues to bemoan high gas prices, President Obama has asked his administration to increase domestic oil production. To do so leases in the Gulf of Mexico and Alaska will be extended and sold more frequently.
The increased production, however, is unlikely to regulate prices in the near future. The US produces just 5 percent of the world’s oil while consuming nearly 20 percent. This imbalance makes it difficult for any administration to curb the price of oil.
Some politicians are raising environmental concerns while others are applauding the move. Three bills were passed recently in the (Republican) House to expand and expedite offshore oil and gas drilling. The White House is opposed to all three bills, but intends to adopt some of the provisions.
As part of this increased production, leases that were suspended last year in the Gulf following the BP spill will be extended. An interagency task force will be formed to review cases in Alaska where some drillers were held up not by the drilling moratorium, but by an air pollution permit issue.
Despite the call to increase domestic production, Obama will continue to call for the elimination of the $4.4 billion in taxpayer subsidies to oil and gas companies.
