Follow this blog:
RSS

Obama: ‘No quick fixes’ to American energy security

By | March 30, 2011, 9:27 AM PDT

U.S. president Barack Obama said Wednesday that the U.S. needs to free itself from dependence on foreign oil, and set a goal of reducing oil imports by one-third in a decade.

In a measured speech at Georgetown University in Washington, D.C., Obama said “American ingenuity, American know-how” can lead the nation into a future that doesn’t involve risking energy security on tumult in the Middle East, North Africa and elsewhere.

To make ourselves more secure — to control our energy future — we will need to harness that ingenuity. It is a task that won’t be finished by the end of my presidency, or even the next. But if we continue the work that we have already begun over the last two years, we won’t just spark new jobs, industries and innovations; we will leave your generation and future generations a country that is safer, healthier, and more prosperous.

Demand will no doubt exceed supply, and as nations like India and China grow and industrialize, it will only get worse, Obama said.

As two billion more people start consuming more goods, and driving more cars, and using more energy, it’s certain that demand will go up a lot faster than supply. So here’s the bottom line – there are no quick fixes. And we will keep on being a victim to shifts in the oil market until we get serious about a long-term policy for secure, affordable energy.

He added:

We cannot keep going from shock when gas prices go up to trance when they go back down on the issue of energy security, rushing to propose action when gas prices rise, then hitting the snooze button when they fall again. We can’t keep on doing that. It is time to do what we can to secure our energy future.

DEMAND VS. SUPPLY

Looking inward to the domestic energy situation, Obama said the U.S. has just 2 percent of the world’s oil reserves yet uses 25 percent of them.

“Even if we drilled every drop of oil out of every one of those reserves, it still wouldn’t be enough to meet our long-term needs,” he said.

One way to meet this need: partner with Canada, Mexico and Brazil.

A second way: “safe and responsible” off-shore drilling.

“I don’t think anyone’s forgotten that we’re not even a year removed from the largest oil spill in our history,” Obama said, his booming voice quieting the room. “I know the people of the Gulf Coast haven’t. What we learned from that disaster helped us put in place smarter standards of safety and responsibility.

“For example, if you’re going to drill in deepwater, you’ve got to prove that you can actually contain an underwater spill. That’s just common sense.”

A third way: natural gas.

Recent innovations have given us the opportunity to tap large reserves — perhaps a century’s worth — in the shale under our feet. Now, we have to make sure we’re doing it safely, without polluting our water supply.

A fourth way: biofuels made from switchgrass, wood chips and other biomass.

If anyone doubts the potential of these fuels, consider Brazil. I was just there, and already, more than half of Brazil’s vehicles can run on biofuels. And just last week, our Air Force used an advanced biofuel blend to fly an F-22 Raptor faster than the speed of sound…I’m directing the Navy and the Departments of Energy and Agriculture to work with the private sector to create advanced biofuels that can power not just fighter jets, but trucks and commercial airliners.

TRANSPORTATION & FUEL

Obama said the energy problem manifests itself most clearly in the transportation sector, where 70 percent of petroleum consumption occurs. Not to mention that it’s the second largest part of the average family’s budget, he said.

Last year, we established a groundbreaking national fuel efficiency standard for cars and trucks. Our cars will get better gas mileage, saving 1.8 billion barrels of oil over the life of the program. Our consumers will save money from fewer trips to the pump — $3,000 on average over time. And our automakers will build more innovative products. Right now, there are even cars rolling off assembly lines in Detroit with combustion engines — I’m not talking about hybrids — that can get more than 50 miles per gallon. We know how to do it. We know how to make our cars more efficient.

To underscore his point, Obama announced a new goal: by 2015, federal agencies must purchase all of their vehicles as alternative fuel, hybrid, or electric models.

“All of them should be alternative fuel,” he said.

With that said, Obama called for “more powerful incentives to consumers” and rewards for “communities that pave the way for adoption” of electric vehicles.

But the challenge is to overcome the battery, which has delayed electric car production in the United States.

“Soon, America will be home to 40 percent of global manufacturing capacity for these batteries,” he said, adding that America must manufacture batteries to attract the domestic manufacture of electric cars.

But it comes back to energy.

The thing about electric cars is that, well, they run on electricity. Secretary Chu knows that. And even if we reduce our oil dependency, a smart, comprehensive energy policy requires that we change the way we generate electricity in America.

GREEN BUILDING

Obama also touched on green building and the need to waste less energy.

Today, our homes and businesses consume 40 percent of the energy we use, costing us billions in energy bills. Manufacturers that require large amounts of energy to make their products are challenged by rising energy costs. That’s why we’ve proposed new programs to help Americans upgrade their homes and businesses and plants with new, energy-efficient building materials like lighting, windows, heating and cooling – investments that will save consumers and business owners tens of billions of dollars a year, free up money for investment and hiring, and create jobs for workers and contractors.

He discussed the financial hurdles for homeowners to build more efficiently.

They’ll get their money back. You will save money on your electricity bill that pays for those improvements that you made. But a lot of people may not have the money up front so we’ve got to give them incentives to do that…with the right incentives in place, we can double the use of clean energy.

NUCLEAR POWER

Obama also touched on Japan and the nuclear power question. Succinctly: “We can’t simply take it off the table.”

He expanded:

America gets one-fifth of our electricity from nuclear energy. It has important potential for increasing our electricity without adding carbon dioxide to the atmosphere. But I’m determined to ensure that it’s safe. That’s why I’ve requested a comprehensive safety review by the Nuclear Regulatory Commission to make sure that all of our existing nuclear energy facilities are safe. We’ll incorporate those conclusions and lessons from Japan in designing and building the next generation of plants.

He added: “You will have a customer if you’re producing clean energy…innovators are willing to make those big capital investments.”

THE GOVERNMENT’S ROLE

Obama called for a “clean energy standard” to drive private investment, but acknowledged that government support is vital.

I’ve visited gleaming new solar arrays among the largest in the world, tested an electric vehicle fresh off the assembly line — about five feet before Secret Service told me to stop — and toured once-shuttered factories where they’re building advanced wind blades as long as a 747 and the towers to support them. I’ve seen the scientists searching for that next big energy breakthrough. And none of this would have happened without government support.

He then outlined the threat of slowing this support:

We’re already paying a price for our inaction. Every time we fill up at the pump; every time we lose a job or a business to countries that invest more than we do in clean energy; when it comes to our air, our water, and the climate change that threatens the planet you’ll inherit – we are already paying that price. These are the costs we’re already bearing. And if we do nothing, that price will only go up.

THE GENERATIONAL FACTOR

Obama closed by speaking directly to the Georgetown students in the room, telling them that the era in which they have come of age — “fewer walls,” “constant information” and “economic turmoil” is evidence enough that America “can change for the better” — and that “young people” must “push America.”

We need that. We need you to dream big. We need you to summon that same spirit of unbridled optimism, that bold willingness to tackle tough challenges and see those challenges through that led previous generations to rise to greatness –- to save democracy, to touch the moon, to connect the world with our own science and imagination.

The reason? If nothing more, because it’s not to be left to future generations — and because “all of our challenges are within our power to solve.”

Start your week smarter with our weekly e-mail newsletter. It's your cheat sheet for good ideas. Get it.

Andrew Nusca

About Andrew Nusca

Andrew Nusca is editor of SmartPlanet.

Andrew Nusca

Andrew Nusca

Editor

Andrew Nusca is editor of SmartPlanet and an associate editor for ZDNet. Previously, he worked at Money, Men's Vogue and Popular Mechanics magazines. He holds degrees from the Columbia University Graduate School of Journalism and New York University. He based in New York but resides in Philadelphia.

Follow him on Twitter.

Andrew Nusca

Andrew Nusca
Andrew Nusca does not hold any investments in the companies he covers.
If you liked this, don't miss...
9
Comments

Join the conversation!

Follow via:
RSS
+1 Vote
+ -
What is happening here?
The Department of Energy was founded in 1977 with these exact goals.

35 years and hundreds of billions of dollars later it has accomplished none of those goals.

All I hear is more hot air from a windbag politician.
Posted by Hates Idiots
30th Mar 2011
+1 Vote
+ -
RE: Obama: 'No quick fixes' to American energy security
What are you doing to go green? Here are some tips: http://www.youtube.com/user/ReliantRodeo
Posted by tadloot
30th Mar 2011
+1 Vote
+ -
RE: Obama: 'No quick fixes' to American energy security
Republicans have held the presidency for 20 years - more than half - of the existence of DOE, including 12 years by a family with direct ties to the oil industry. The department charter has never been to develop energy sources to the exclusion of oil.
Posted by hoodedswan
31st Mar 2011
+1 Vote
+ -
RE: Obama: 'No quick fixes' to American energy security
@hoodedswan

Barack Obama has chipped in $2 billion in loans to exploit offshore oil resources in hopes of extracting a major new source of petroleum?in South America.

The U.S. Export-Import Bank made available to Petrobras in April 2009 to expand its offshore drilling by buying from U.S. suppliers. Before the loan was made, billionaire hedge fund manager/major Barack Obama fundraiser George Soros ? invested in Petrobras.
Posted by bb_apptix
31st Mar 2011
+1 Vote
+ -
Bipartisan mess. You make my point hs.
If you look at Carters original speech that launched the DoE you will find many things in common with Obamas speech. The only item I can find on here that actually happened was the creation of a strategic oil reserve.

The first principle is that we can have an effective and comprehensive energy policy only if the government takes responsibility for it and if the people understand the seriousness of the challenge and are willing to make sacrifices.

The second principle is that healthy economic growth must continue. Only by saving energy can we maintain our standard of living and keep our people at work. An effective conservation program will create hundreds of thousands of new jobs.

The third principle is that we must protect the environment. Our energy problems have the same cause as our environmental problems -- wasteful use of resources. Conservation helps us solve both at once.

The fourth principle is that we must reduce our vulnerability to potentially devastating embargoes. We can protect ourselves from uncertain supplies by reducing our demand for oil, making the most of our abundant resources such as coal, and developing a strategic petroleum reserve.

The fifth principle is that we must be fair. Our solutions must ask equal sacrifices from every region, every class of people, every interest group. Industry will have to do its part to conserve, just as the consumers will. The energy producers deserve fair treatment, but we will not let the oil companies profiteer.

The sixth principle, and the cornerstone of our policy, is to reduce the demand through conservation. Our emphasis on conservation is a clear difference between this plan and others which merely encouraged crash production efforts. Conservation is the quickest, cheapest, most practical source of energy. Conservation is the only way we can buy a barrel of oil for a few dollars. It costs about $13 to waste it.

The seventh principle is that prices should generally reflect the true replacement costs of energy. We are only cheating ourselves if we make energy artificially cheap and use more than we can really afford.

The eighth principle is that government policies must be predictable and certain. Both consumers and producers need policies they can count on so they can plan ahead. This is one reason I am working with the Congress to create a new Department of Energy, to replace more than 50 different agencies that now have some control over energy.

The ninth principle is that we must conserve the fuels that are scarcest and make the most of those that are more plentiful. We can't continue to use oil and gas for 75 percent of our consumption when they make up seven percent of our domestic reserves. We need to shift to plentiful coal while taking care to protect the environment, and to apply stricter safety standards to nuclear energy.

The tenth principle is that we must start now to develop the new, unconventional sources of energy we will rely on in the next century.
Posted by Hates Idiots
31st Mar 2011
+1 Vote
+ -
wrong.
The department charter has never been to develop energy sources to the exclusion of oil.

Check out priciples 9 and 10.
Posted by Hates Idiots
31st Mar 2011
+1 Vote
+ -
Unfortunately he is right . . .
Because the industry is deregulated, there's no way that investors in the myriad of electrical distribution companies will forego short-term profits in order to cooperate with other electrical distribution fiefdoms in the deployment of a $tandard $eries of $ecurity protocols. By definition, fiefdoms isolate themselves in order to maintain a local competitive edge.

Certain industry sectors should have never been deregulated in the first place. This is a good example.
Posted by twirth5
31st Mar 2011
+1 Vote
+ -
RE: Obama: 'No quick fixes' to American energy security
U.S. needs to free itself from dependence on foreign oil, and set a goal of reducing oil imports by one-third in a decade. One way to meet this need: partner with Canada, Mexico and Brazil.[quotes the anointed one]


I almost fell off my chair from laughing when I read this!!
Talk about double talk..only the anointed one could say this
as a solution! Cut imports.but team up with other countries..
OK,..DID I MISS SOMETHING HERE?
Maybe he should also think about the billion dollar a day
LYBIA mess he has got us into! To busy lecturing in a university to get young votes! Thats way more important than trying to balance our budget or telling us how he intends
to end his new war! Meh!
Posted by MontanaMamma
1st Apr 2011
+1 Vote
+ -
Security
security monitoring is paramount for safety of every individual. http://www.tophomeeecuritystore.com/
Posted by Home security
31st May
Join the conversation
Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]

Join the SmartPlanet community and join the conversation! Signing up is fast and free. Don't wait -- we want to hear your opinion!