Is Obama set to increase America's reliance on foreign oil?

President Barack Obama has made much of his plans to wean American off foreign oil and towards a 'green energy' future, but new federal legislation proposed this week could see America's imports of foreign oil increase.

A study into the legislation, commissioned by the oil industry who are vehemently opposing all restrictions on oil production, states that by 2030 American refining production would drop 17 percent from today's levels if Obama's climate bill passes. Unfortunately, according to the study, the drop would lead to an increase in foreign imports meaning the US would be reliant on the Middle East for 19.4 percent of its refined fuel - twice what it currently receives.

Now, one must take into account that the oil industry commissioned this study into the legislation, in a bid to reinforce their argument that restrictions on emissions would hamper U.S. oil producers, but it is an interesting dilemma for the President.

Last year, before he was announced as president, Obama stated that his clear goal once he was in office was to "end our dependence on oil in the Middle East" within ten years. If the climate bill is passed and restrictions on domestic refiners are implemented, America will still need to supplement their need for oil. On the other hand, it is a clear attempt by the oil industry to derail the proposed bill.

The bill requires refiners to have permits for nearly half of U.S. carbon-dioxide emissions, though the industry would receive only about 2.25 percent of the total emissions allowances.

Average U.S. refinery output would drop to 12 million barrels a day in 2030 from about 14.5 million barrels a day currently. If nuclear power and other renewable energy technologies are implemented, this could reduce even more.

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