US To search out ‘Extra Oil At Residence,’ Whereas Cutting Consumption

In a speech at Georgetown University in Washington, the president presented a “Blueprint for a Secure Energy Future” that would cut back US oil imports by growing the usage of domestic natural gas, selling advanced biofuels, boosting automobile gas effectivity and rising US oil output.

The president stated that while gasoline value will increase have traditionally been momentary, the long-term trend suggests “there will be extra ups than downs. That’s as a result of nations like India and China are growing at a fast clip. And as 2 billion extra people begin consuming extra items, driving more automobiles and utilizing extra power, it’s sure that demand will go up too much sooner than supply.”

But Obama warned that “there aren’t any quick fixes, and we’ll keep being a sufferer to shifts within the oil market until we get serious about a long-time period coverage for safe, inexpensive energy.”

“Meeting this new aim of reducing our oil dependence depends largely on two issues — finding and producing extra oil at dwelling and reducing our dependence on oil with cleaner alternative fuels and larger efficiency,” he said.

The US currently relies closely on imported oil. In 2010, it imported 9.163 million b/d of crude and almost 2.6 million b/d of refined merchandise, in keeping with data from the Power Data Administration, the statistical arm of the Division of Power. US crude production final year averaged 5.512 million b/d [please see my publish “U.S. Crude Oil Manufacturing/Desk,” here — D.R.].

Neighboring Canada and Mexico had been top crude suppliers with 1.972 million b/d and 1.14 million b/d, respectively [please see my publish “U.S. Crude Oil Imports from Top 15 Countries, Dec 2010 and Full Yr 2010 — EIA,” right here — D.R.].

Worldwide crude costs climbed above $100/barrel early this yr as unrest spread throughout North Africa and the Middle East, with North Sea Brent trading close to $one hundred twenty/b in the latter a part of February because the unrest unfold to Libya and diminished oil production there [please see my post/remarks here].

To spur an increase in US manufacturing, Obama said the White Home is growing “incentives” for oil companies to hurry up growth in areas already open to drilling. Though Obama didn’t present particulars, a White House truth sheet issued Wednesday stated the US Department of Inside is already shortening some lease terms and requiring drilling to begin earlier than granting lease extensions. DOI can also be finding out a graduated royalty rate construction to reward sooner improvement.

Obama set a goal of constructing 4 industrial-scale biofuels refineries in the following two years and pledged that the US government would purchase only low-emissions automobiles by 2015.

“The fleet of cars and trucks we use in the federal government is one among the biggest within the country,” Obama stated. “That is why we’ve already doubled the number of different autos within the federal fleet, and that is why, right this moment, I am directing agencies to purchase 100% various fuel, hybrid or electric automobiles by 2015.”

“We’ve identified in regards to the dangers of our oil dependence for many years,” the president mentioned. “Presidents and politicians of every stripe have promised vitality independence, however that promise has up to now gone unmet.

“I’ve pledged to reduce America’s dependence on oil too, and I am happy with the historic progress we’ve made over the past two years towards that aim. However we have additionally run into the identical political gridlock and inertia that is held us again for decades.

“That has to alter. We can’t keep going from shock, when fuel prices go up, to trance on the difficulty of energy safety, speeding to propose motion when gasoline costs rise, then hitting the snooze button after they fall again.”

Reaction to Obama’s speech was mixed, with oil producers saying the president’s criticism was misguided and some inexperienced teams taking concern along with his proposed solutions.

The president of the Impartial Petroleum Producers [/Association] of America [i.e., IPAA — D.R.], Barry Russell, stated sluggish permitting by the federal authorities is partially to blame for the slow growth that Obama cited.

“Leases can’t be developed if companies don’t have the permits necessary to proceed with exploration and manufacturing actions, which take several years and billions of dollars to develop,” Russell mentioned. “There is also no assure that oil and pure gasoline shall be found on all of the land that is leased.”

Democrats and environmental groups had a largely constructive response, to the speech, though Associates of the Earth criticized Obama for relying too heavily on nuclear and natural gasoline energy.

Frances Beinecke, president of environmental group the Natural Sources Defense Council, said Obama’s objective of cutting oil imports is achievable.

“We will get there by driving larger-gasoline-mileage vehicles, increasing mass transit techniques, utilizing more wind and solar, and constructing more efficiency into the products we use and the buildings we dwell and work in,” Beinecke said. [Full story]

(In a speech at Georgetown College in Washington, March 30th, President Obama additionally said, “Final yr, American oil manufacturing reached its highest stage since 2003, and for the first time in more than a decade [last time 1997 – forty nine% — D.R.], oil we imported [internet imports] accounted for less than half the liquid gasoline we consumed [i.e., Forty nine% — D.R.].”—please see my put up, including remarks, right here. Please watch President Obama’s speech, here. In his State of the Union handle in January, President Obama set a aim of producing eighty% of US electricity from clear energy sources by 2035.