The Obama administration announced Tuesday it is halting plans to allow oil drilling in the Atlantic Ocean - a decision that generated a swift negative reaction from several industry associations.

The U.S. Department of Interior originally proposed to auction oil drilling rights off the coasts of Virginia, North Carolina, South Carolina and Georgia, USA Today reported. However, the plan was dropped after feedback from environmentalists and local groups opposed to the drilling. http://usat.ly/1V9rpwL

In a statement, American Petroleum Institute CEO Jack Gerard said the department's decision was inconsistent with the will of American voters and Congress.

"This decision stunts the safe and responsible path to securing the domestic energy supplies future generations of Americans will need," he said. "This also wipes out an opportunity to create scores of additional new jobs for Americans along the Atlantic coast and nationwide, while also erasing millions more in revenue to the government."

National Ocean Industries Association President Randall Luthi accused the administration of turning a "blind eye" to the nation's long-term energy needs. NOIA represents offshore oil drillers.

"This is a short-sighted political decision of an administration influenced by the radical and extreme minority devoted to keeping fossil fuels in the ground," he said. "The removal is not based upon science or good energy policy, and will certainly inhibit the economic opportunities and energy security of our country."

Independent Petroleum Association of America CEO Barry Russell said the mineral wealth of the nation belongs to Americans, "not just the President, Interior Secretary and extreme activists."

"This plan will make our nation less competitive, limit our geopolitical advantages abroad, and force us to be more reliant on foreign sources of oil from volatile regions of the world," he said.

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