Obama, Gulf OIL

Obama Renews Push For New Energy Policy

President Obama seized on the BP oil spill Wednesday to renew a push for legislation to "fully embrace a clean energy future," including an end to tax breaks for oil companies.
Obama said his vision for a new U.S. energy policy "means rolling back billions of dollars in tax breaks to oil companies so we can prioritize investments in clean energy research and development."

In a speech at Carnegie Mellon University in Pittsburgh, Obama said the largest oil spill in U.S. history should spur the public and policy makers to pursue long-term energy policies that don't rely on fossil fuels.

He cited energy efficiency, greater use of natural gas reserves and more nuclear power plants as fundamentals to reducing U.S. reliance on oil. Obama also renewed his call for climate change legislation while conceding that the Senate currently lacks the support needed to pass a bill drafted by Sens. John Kerry, D-Mass., and Joseph I. Lieberman, I-Conn.

"The votes may not be there right now, but I intend to find them in the coming months," Obama said. "I will make the case for a clean energy future wherever I can, and I will work with anyone from either party to get this done."

The president said that the April 20 explosion of the Deepwater Horizon oil rig in the Gulf of Mexico and the subsequent oil spill highlight the "inherent risks to drilling four miles beneath the surface of the Earth, risks that are bound to increase the harder oil extraction becomes."

While Obama looked beyond the BP spill, two senators zeroed in on the oil giant.
Sens. Charles E. Schumer, D-N.Y., and Ron Wyden, D-Ore., called on the company to delay paying dividends to shareholders.

They say the company may need every penny to maintain high capital reserves to cover the rising tab for the oil spill. Published reports estimate that BP has spent almost $1 billion so far on efforts to contain the Deepwater Horizon spill.

In a letter to BP CEO Tony Hayward, the lawmakers cited an estimate by Credit Suisse Group AG that the cost could hit $37 billion if BP cannot stop the well from leaking until August, when it hopes to complete relief drilling.

"We are certainly not opposed to BP paying dividends after the well is capped, cleanup has been completed and the victims have been justly compensated," Schumer and Wyden wrote. 

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