WASHINGTON - The Obama administration signalled yesterday that the oil industry faces stringent oversight after the Gulf oil disaster, even as it moved to partially reopen offshore drilling.
The administration was expected to issue new safety rules as early as next Tuesday for companies that want to drill in shallow waters, while President Barack Obama's six-month moratorium in deeper areas remains in place.
Oil companies have complained about the lack of clarity over the new regulations, and some Gulf Coast residents are worried that the uncertainties and delays on the part of the department of interior will imperil thousands of jobs in the region.
But Mr Obama, in some of his strongest statements to date on the April 20th oil disaster, said he wanted to know "whose ass to kick" over the massive spill.
He said he still supports offshore drilling, as BP struggles to contain its gushing well, but said oil companies will face greater oversight.
"I believe that we're going to need to increase domestic oil production," Mr Obama told NBC's Today show in an interview.
"But we can't do these things unless we've got confidence that somebody's looking over the shoulder of these folks, because the systems have gotten too complicated for us to simply say, 'You know what, you can go do what you want'."
Mr Obama, under pressure from critics who say he is not doing enough to contain the oil washing up on Gulf shores, said he appointed a bipartisan commission to look into the oil spill because he could not expect to get the truth from BP or other oil companies.
"I want them to report back to me, because you obviously cannot take the word of oil companies when they say they've got a bunch of redundancy and back-up plans when something like this happens, and it turns out they have no idea what they're doing," he said.
But even in shallow waters, drilling has been held up as officials at the interior department's Minerals Management Service worked over the weekend on new requirements which companies must implement.
Louisiana senator David Vitter said delays in issuing new rules added to the economic problems caused by the oil spill.
"This administration's policies aren't helping Louisianans - they are shutting down huge parts of our economy," the Republican lawmaker said in a statement yesterday.
The Gulf of Mexico oil spill has also ignited a flurry of work on drafting legislation in response to the disaster.
Senate majority leader Harry Reid wants to debate a Bill in July encouraging increased use of alternative energy and improving safety in offshore oil drilling projects.
Senate Energy and Natural Resources Committee spokesman Bill Wicker said the panel was developing a "rather large piece of legislation with many aspects to it".
Mr Reid wants legislative recommendations from a few key committees by July 4th. - (Reuters)