Obama to reject new Atlantic Ocean oil drilling

The   Obama administration   will abandon its plan to allow new offshore oil drilling on the U.S. southeast coast, dealing a blow to petrole...

The Obama administration will abandon its plan to allow new offshore oil drilling on the U.S. southeast coast, dealing a blow to petroleum companies that had hopes of tapping new reserves.

The Interior Department is set to announce today that it will not auction off certain drilling rights forAtlantic Ocean waters off the coast of Virginia, North Carolina,South Carolina, Georgia and Florida.

The reversal comes after environmentalists, coastal residents and the U.S. military vocalized opposition to the plan.

It also comes amid declining industry investment in new exploration and production activities as oil prices fell by about 70% since late 2014 — although the industry is still seeking long-term investment opportunities under the assumption that oil prices will recover.

Offshore drilling in the Atlantic had drawn vigorous support from the American Petroleum Institute, which said it "could have remarkable benefits for job creation, U.S. energy security, domestic investment, and revenue to the government."

Interior Department Secretary Sally Jewell said in a tweet that the plan "protects the Atlantic for future generations."

The Interior Department is expected to announce that drilling rights for 2017 through 2022 in the mid- and south-Atlantic regions will not be sold for several reasons.

Among the factors it plans to cite are the Department of Defense's opposition to the plan, market issues and coastal residents' opposition.

Environmental groups celebrated the decision. Jacqueline Savitz, Oceana’s vice president for the U.S., called it a "courageous" move that will aid in the battle against climate change.

"It will prevent oil spills and coastal industrialization, it makes seismic testing unnecessary and it will help promote the clean energy solutions that we so desperately need," she said in a statement. "With this decision coastal communities have won a ‘David vs. Goliath’ fight against the richest companies on the planet and that is a cause for tremendous  optimism for the well-being of future generations.”

via usatoday