Skip to: Content
Skip to: Site Navigation
Skip to: Search

Deep-water oil drilling: why Obama is OK with angering left and right

Neither the oil industry nor environmentalists are pleased with President Obama's new deep-water oil drilling plan. But in an election year, that might be a safe position politically.

By Staff writer / January 26, 2012

President Obama speaks about energy efficiency at UPS Thursday in Las Vegas.

Haraz N. Ghanbari/AP


OK, baby – you can drill. Just be careful.

Skip to next paragraph

President Obama Thursday followed up on his State of the Union promise to expand deep-ocean oil drilling and exploration on the nation's outer continental shelf by unveiling a big oil lease sale in the Gulf of Mexico.

The move marks yet another step toward full-scale resumption of leasing following the abrupt halt that followed the 2010 Deepwater Horizon blowout that killed 11 men and spilled an estimated 4.9 million barrels (205 million gallons) of oil into the Gulf. But it satisfied neither the oil industry nor environmentalists. 

The June lease sale is not "new" at all, but one devised by the Bush administration and later put on hold, industry sources say. They call for the president to return to the offshore drilling plan he endorsed just months before the Gulf oil spill, which would open new waters off Virginia, North and South Carolina, and Florida to drilling.  

Environmentalists criticize the administration for reopening deep-water drilling even though the technical problems that led to the Gulf oil spill have not been fixed.  

But as gasoline prices creep upward this spring, the president's move could be intended to show independent voters he isn't under the thumb of environmentalists or the oil industry. Following his rejection of the Keystone XL pipeline project, Thursday's move could deflect election-year criticism that he is harming the nation's economy by not vigorously pursing oil development at home.

"As in 2010, administration actions continue to defend the president's left flank while demonstrating responsiveness to voters confronting high prices for transportation and heating fuels," writes Kevin Book, a senior energy analyst with ClearView Partners, LLC, a Washington-based energy market research firm, in a recent analysis. "But this year the White House is being much more careful."

The lease sale puts on the block 38 million acres across the central Gulf of Mexico, an energy-rich region estimated to hold 31 billion barrels of oil and 134 trillion cubic feet of natural gas. Much of it is in water up to 11,000 feet deep and 230 miles from shore.

It is the first element of the president's plan, announced in his State of the Union address, to open 75 percent of the oil and gas resources on nation's continental shelf to drilling. In all, a dozen lease sales will run from 2012 to 2017 in the Gulf of Mexico and off the Alaskan coast in the Chukchi and Beaufort seas and in Cook Inlet, the administration announced today.


Read Comments

View reader comments | Comment on this story

  • Weekly review of global news and ideas
  • Balanced, insightful and trustworthy
  • Subscribe in print or digital

Special Offer


Doing Good


What happens when ordinary people decide to pay it forward? Extraordinary change...

Endeavor Global, cofounded by Linda Rottenberg (here at the nonprofit’s headquarters in New York), helps entrepreneurs in emerging markets.

Linda Rottenberg helps people pursue dreams – and create thousands of jobs

She's chief executive of Endeavor Global, a nonprofit group that gives a leg up to budding entrepreneurs.

Become a fan! Follow us! Google+ YouTube See our feeds!