WASHINGTON ( CNN ) -- The worst oil spill in U.S. history has heated up the debate about how to feed the nation with cleaner , safer energy . The argument over whether to `` drill baby drill '' -- the 2008 GOP campaign mantra -- returned in April after a deadly oil rig blast spilled millions of gallons of oil into the Gulf of Mexico . The disaster threatened jobs in the nation 's seafood and tourism industries and hundreds of miles of sensitive wetlands , marshes and wildlife . The spill came as President Obama was backing expanded offshore oil drilling and as Congress considered wide-ranging energy legislation aimed at cutting pollution and U.S. dependency on foreign oil . Before BP 's Gulf oil disaster , Obama 's late March proposal called for opening swaths of U.S. coastal waters in the Atlantic Ocean and the Gulf of Mexico to oil and natural gas drilling . After the spill , Obama said offshore drilling is key to `` our energy future , '' but it can move forward only with assurances that the Gulf disaster wo n't be repeated . The president halted drilling permits for new wells and ordered inspections of all deepwater operations . Former GOP vice presidential nominee and Alaska Gov . Sarah Palin -- who in 2008 called on the U.S. to `` drill baby drill '' in the protected Arctic National Wildlife Refuge -- tweeted that Obama should offset his drilling moratorium by `` correspondingly '' allowing `` more onshore drilling , including ANWR reserves . Domestic oil 's still required in US industry . '' Will the spill change Obama 's oil policy ? Senate Democrats gave up on their goal of passing a slimmed-down energy bill before August recess . Senate Majority Leader Harry Reid blamed unified Republican opposition to the proposal . `` It 's a sad day when you ca n't find a handful of Republicans to support a bill that would create 70,000 clean-energy jobs , hold BP accountable , and look at a future as it relates to what BP did . '' Republicans pointed at Reid . `` Sen. Reid is predictably blaming Republicans for standing in the way of a bill that he threw together in secret and without input from almost any other member of the Senate , '' said Sen. Lisa Murkowski of Alaska , the top Republican on the energy committee . `` Process alone guaranteed its failure , although substance would have as well had Sen. Reid actually brought his bill up for debate or a vote . '' The Democratic bill had been stripped of its most controversial components such as limits on carbon emissions . The remaining legislation would have eliminated a $ 75-million cap on economic damages that offshore oil drillers would be responsible for . It would have reformed federal government oversight of offshore drilling . It encouraged the use of natural gas engines in commercial trucks ; and it promoted high efficiency appliances in homes . Republicans planned to offer an alternative bill that included lifting the Obama administration 's blanket moratorium on deepwater drilling , setting up a bipartisan commission with subpoena power to investigate the Gulf oil disaster and propose reforms , and allowing for revenue sharing for states that permit offshore drilling . An energy bill passed last year by the House of Representatives included a controversial cap-and-trade system . The system would set a price for greenhouse gas emissions , such as carbon dioxide , and polluters would obtain and trade credits for emissions over a set threshold . Republicans and oil and coal producers oppose such a plan . Supporters say it 's the best way to begin reducing U.S. dependence on fossil fuels . Would a nuclear power comeback be a good thing ? Obama has been a key figure in energy talks among lawmakers . In late June , he met with a bipartisan group of senators at the White House to discuss passing an energy and climate change bill this year . The president had expressed hope that something could be done . `` There was agreement on the sense of urgency required to move forward with legislation , and the president is confident that we will be able to get something done this year , '' the White House said in a statement . Obama told senators that he believed the best way to make a transition to a clean-energy economy is with a bill that `` makes clean energy the profitable kind of energy for America 's businesses by putting a price on pollution , '' the statement said . CNN Congressional Producer Ted Barrett contributed to this report .
Worst U.S. oil spill heightens debate over ways to feed nation 's energy needs . NEW : Senate shelves slimmed-down energy bill , blaming GOP opposition . NEW : Senator says Sen. Harry Reid rushed bill through without trying to win GOP support .