Obama signals his intentions to the oil industry

US president Barack Obama has made the clearest indication yet of his commitment to the oil industry in the US in a speech made among new pipeline that will span from at Cushing, Oklahoma, to the Gulf of Mexico.

The administrations intentions have been questioned of late after it delayed the Keystone XL pipeline from Canada to Texas, but these concerns were squashed in an almighty manner, as the president made a symbolic speech next to the pipeline that will be used by TransCanada, who will build the southern leg of the route.

Mr Obama made promises that the 485-mile southern section would be a priority for federal government approvals. Although the pipelines effect may be quite minimal, it does represent a significant step in the right direction,  according to Jim Burkhard, a managing director at IHS Cera.

The US oil industry has experienced a seismic shift through the surge in shale oil production,  which has been made possible by developments in the techniques of hydraulic fracturing and horizontal drilling.

This has pushed US oil production up to the highest level in eight years, pushing imports down to below half of consumption for the first time in more than a decade.

Posted by Claire Manning