U.S. President Barack Obama said Saturday in his weekly radio address that the Congress should end subsidies for the oil companies to invest in energy of tomorrow.
“When oil companies are making huge profits and you’re struggling at the pump, and we’re scouring the federal budget for spending we can afford to do without, these tax giveaways aren’t right,” Obama said in his address.
“They aren’t smart. And we need to end them,” he added.
Both Obama and his potential opponents in the presidential race next year have put the issue on the table, said AFP.
On Tuesday, the president had urged Congress to cut $4,000 million in subsidies to oil companies.
He recalled this week that major U.S. oil companies have announced profits of more than $25,000 million in the first months of 2011, up 30% over the same period last year.
Although Obama said he was not opposed to increased oil production, said: “But I also believe that instead of subsidizing yesterday’s energy, we should invest in tomorrow’s – and that’s what we’ve been doing.”
The president said his government was already investing in solar and wind power and other energy efficient technologies. “And I think that’s an investment worth making,” he said.