Oil industry: drilling plan good 'first step'

Some Republicans have jumped on the Obama administration for not opening up more areas offshore to drilling in the plan announced Wednesday. But the industry response was generally more positive, which could weaken the ability of the minority party to score political points if gas prices rise as expected this summer.

Jack Gerard, the president and CEO of the American Petroleum Institute, called the administration’s move to expand drilling off the Southeastern coastline, parts of the eastern Gulf of Mexico and areas off of Alaska a “positive development.”

“We appreciate the administration’s recognition of the importance of developing our nation’s oil and natural gas resources to create jobs, generate revenues and fuel our nation’s economy,” Gerard said.

Barry Russell, the president and CEO of the Independent Petroleum Association of America, had similar things to say.

“The announcement today from the president is a welcomed first step to addressing the nation’s future energy needs,” Russell said. “For decades, Washington has failed to make the tough decisions necessary to develop a responsible, 21st century American offshore oil and gas program.”

And this from the Business Roundtable, a group of the CEOs of the largest companies in the United States: “This decision is an important first step towards greater energy security for our nation.”

Joshua Freed, who directs clean energy programs at The Third Way, a Democratic think tank, said the drilling decision was “smart public politics.”

In the end, though, the move may not carry over to the debate on climate legislation, the passage of which remains a priority for the administration.

“It’s good optics to get ahead of the coming high summer gas prices, but it’s going to be tough to get skeptical senators on board K-G-L,” Freed said, referring to Sens. John Kerry (D-Mass.), Lindsey Graham (R-S.C.) and Joseph Lieberman (I-Conn.), the climate trio trying to write compromise legislation.