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Obama for ending $4 bn subsidy to US oil firms

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Press Trust of India Washington
Last Updated : Jan 20 2013 | 3:02 AM IST

Calling for ending the $4 billion subsidies that the American oil industry receives every year, US President Barack Obama today asserted there is no quick fixes to challenges of galloping oil except for adopting the "all-of-the-above" approach.

"A century of subsidies to the oil companies is long enough. It's time to end taxpayer giveaways to an industry that's never been more profitable, and use that money to reduce our deficit and double-down on a clean energy industry that's never been more promising," Obama said in his weekly address to the nation.

"We know there's no silver bullet that will bring down gas prices or reduce our dependence on foreign oil overnight. But what we can do is get our priorities straight, and make a sustained, serious effort to tackle this problem. That's the commitment we need right now," said the US President.

Obama said with only 2% of the world's oil reserves, the US cannot simply drill its way to lower gas prices, as some in Washington have suggested.

"Americans understand that we must have a long-term strategy that uses every available source of energy--including oil, gas, wind, solar, nuclear, biofuels, and more.

"We also cannot fail to recognise the important role that increasing the efficiency of our cars and trucks can play in both reducing our dependence on oil and saving consumers money at the pump," he said.

"You know there are no quick fixes to this problem, and you know we can't just drill our way to lower gas prices."

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First Published: Feb 25 2012 | 6:32 PM IST

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