Barack Obama gives green light to more oil drilling

Published on Sunday 15 May 2011 18:52

US president Barack Obama has urged oil companies to ramp up production in the United States, disappointing environmentalists who claim he is "kowtowing" to large corporations.

At the weekend, the president directed officials to extend leases for drilling in the Gulf of Mexico and off Alaska, noting that it made "good sense" and could help wean the US off imports.

It comes amid public unease over the rising price of petrol, which is close to $4 (2.50) a gallon in many areas, compared with less than $3 a year ago.

Although falling short of the "drill, baby drill" policy favoured by Republicans, Mr Obama risks alienating the green lobby in allowing more drilling.

The move comes just over a year after a nearly five million barrels of oil gushed into the Gulf from a wrecked BP well.

Responding to Mr Obama's remarks, Greenpeace's Kert Davies said: "We are back to business as usual, and he is kowtowing to the oil corporations"

He added that the decision was driven by political factors, coming 18 months before Mr Obama seeks re-election.

An oil industry group praised the administration for a "couple of positive nuggets", but said that more needed to be done to increase production.