By Jeremy Pelofsky and Tom Doggett
WASHINGTON (Reuters) - U.S. President George W. Bush onMonday lifted a White House ban on offshore drilling to try todrive down soaring energy prices, a largely symbolic bidunlikely to have any short-term impact on high gasoline costs.
With prices at the pump over $4 (2 pounds) a gallon, Bushpushed the Democratic-controlled Congress to expand offshoreoil and natural gas drilling in the Outer Continental Shelf andgive oil companies access to the Arctic Wildlife NationalRefuge.
High gasoline prices and soaring food prices have irkedAmerican consumers in a presidential election year, when Bush'sRepublicans are trying to keep the White House and wrestcontrol of Congress back from Democrats.
"Today, I've taken every step within my power to allowoffshore exploration," Bush told reporters. "This means theonly thing standing between the American people and these vastoil resources is action from the U.S. Congress."
Congress too has a ban on offshore drilling and while itexpires on September 30, it could be renewed. Plus, federalofficials say it would take years for any oil to be produced inthose areas, together making Bush's move largely symbolic.
"Now the ball is squarely in Congress' court," Bush saidafter signing a memorandum reversing a presidential ban thatwas instituted by his father, then-President George Bush,almost two decades ago. "The time for action is now."
With an eye to the November election, Bush accusedDemocrats of having "done nothing" as gas prices have gone upand urged them to pass a law for "responsible offshoreexploration" and to give states a say in the decisions.
House Democratic Speaker Nancy Pelosi called Bush's plan a"hoax," joining a chorus of condemnations from environmentalgroups. The business-friendly U.S. Chamber of Commerce hailedthe move as a step toward alleviating high gasoline prices.
Democratic White House hopeful Sen. Barack Obama's campaignalso criticized Bush's move. "It would merely prolong thefailed energy policies we have seen from Washington for 30years," spokesman Bill Burton said.
Even if more Democrats in Congress backed lifting thelegislative ban, it would be unlikely that they would bucktheir presidential candidate ahead of the November election.
Republican White House contender Sen. John McCain, whoreversed his previous opposition to offshore drilling, toldreporters that he thought the decision was a "very importantsignal" and that "states should continue to decide."
NO SHORT-TERM RELIEF IN SIGHT
Despite the hurdles, stocks of offshore drilling companiesrose, including Noble Corp. up 1.8 percent and HerculesOffshore Inc. up more than 4 percent. August light crude oilwas up slightly to $145.20 a barrel in afternoon trading on theNew York Mercantile Exchange.
"Sooner or later, the American public will get so tired ofhigh prices, that they will put pressure on politicians to makechanges," Larry Nichols, chief executive officer of DevonEnergy Corp, an independent U.S. producer, told Reuters.
The U.S. Energy Department's forecasting arm has saidopening the Pacific, Atlantic and eastern Gulf of Mexicoregions to drilling "would not have a significant impact ondomestic crude oil and natural gas production or prices before2030."
Based on data more than 25 years old, the departmentestimates that drilling on closed federal tracts off the U.S.coasts could produce 18 billion barrels of oil and 76 trillioncubic feet of natural gas.
Congress has blocked many attempts to allow updated surveyson the amount of oil and gas reserves in the banned areas.
If both the presidential and congressional bans werelifted, it would then be up to individual states to permitdrilling off their shores, White House spokeswoman Dana Perinosaid. Florida's Gov. Charlie Crist has expressed support fordrilling while California's Gov. Arnold Schwarzeneggerreiterated his opposition.
Perino said the president initially wanted to move inconcert with Congress but decided to go ahead alone after beingrebuffed by Democratic leaders and because of a relentlessupward rise in energy prices.
"There's a lot of things that would need to be worked out,"she said. "And both the legislative ban and congressional banneed to be lifted in order for us to move forward to try todevelop more sources here in our own country."
Environmentalists said more drilling would not end U.S.dependence on oil or cut gasoline prices.
"Calls for more drilling will only increase the alreadyrecord profits of big oil and will do little to reduce thecosts of gas at the pump," said Larry Schweiger president andchief executive officer of the National Wildlife Federation.
The presidential offshore drilling ban was instituted in1990, was later extended by President Bill Clinton and was setto expire in June 2012. Most offshore drilling is allowed inthe Gulf of Mexico, off the coasts of Texas, Louisiana,Mississippi and Alabama, but not Florida.
"The president cruelly is misleading Americans forattempted political gain," said Sen. Bill Nelson, a FloridaDemocrat. "He knows ruining our coastlines won't bring downgasoline prices nor solve our energy challenges."
(Additional reporting by Deborah Zabarenko and ThomasFerraro in Washington, DC and Anna Driver in Houston; Editingby David Wiessler)
