Obama calls for using some oil, gas revenue ‘to get cars off oil’

US President Barack Obama proposed using some federal oil and gas revenue to fund an energy security trust that would support “research and technology to shift our cars and trucks off oil for good.”

He also used his 2013 State of the Union address on Feb. 12 to urge Congress to pursue a bipartisan solution to climate change.

“If a non-partisan coalition of [chief executive officers] and retired generals and admirals can get behind this idea, then so can we,” Obama said of the research and development proposal for alternative motor fuels. “Let’s take their advice and free our families and businesses from the painful spikes in [gasoline] prices we’ve put up with for far too long.”

Securing America’s Future Energy, the proposal’s source, said on Feb. 13 that developing alternative transportation fuels are a key part of breaking US oil dependence. Its Dec. 3, 2012, National Strategy for Energy Security report recommended using some revenue from increased revenue from expanded US Outer Continental Shelf leasing and Alaskan production to develop such a fund.

That fund would be strictly focused on pursuing technologies to displace oil in transportation, particularly electricity and natural gas. SAFE’s proposal also called for yearly contributions to be capped, and for the US Department of Energy to report to Congress yearly on the fund’s progress.

The country has already made significant energy progress, Obama told a joint session of Congress. “After years of talking about it, we are finally poised to control our own energy future,” he maintained.

Outlines progress

“We produce more oil at home than we have in 15 years,” Obama said. “We have doubled the distance our cars will go on a gallon of gas, and the amount of renewable energy we generate from sources like wind and solar—with tens of thousands of good, American jobs to show for it. We produce more natural gas than ever before…. And over the last 4 years, our emissions of the dangerous carbon pollution that threatens our planet have actually fallen.”

But it’s also time to address climate change, he continued. “The 12 hottest years on record have all come in the last 15. Heat waves, droughts, wildfires, and floods—all are now more frequent and intense.”

He asked Congress to work on a bipartisan proposal to address climate change similar to what Sens. Joseph I. Lieberman (D-Conn.) and John McCain (R-Ariz.) developed in their 2003 Climate Stewardship Act that included a cap-and-trade program to limit greenhouse gas emissions.

“But if Congress won’t act soon to protect future generations, I will,” Obama said. “I will direct my Cabinet to come up with executive actions we can take, now and in the future, to reduce pollution, prepare our communities for the consequences of climate change, and speed the transition to more sustainable sources of energy.”

The domestic gas boom has led to cleaner power and increase US energy security, he said.

“That’s why my administration will keep cutting red tape and speeding up new oil and gas permits,” Obama said.

Industry responds

American Petroleum Institute Pres. Jack N. Gerard said Obama recognized the industry as a robust economic engine that invests in American jobs, generates billions of dollars for the government each year, and makes the country more energy secure.

“Unfortunately, 83% of the land and offshore areas controlled by the federal government are still off-limits to oil and gas development,” Gerard said. “President Obama must follow through by implementing a national energy policy, lifting existing restrictions in support of responsible development of our vast energy resources, approving the Keystone XL pipeline, and standing up against unnecessary and burdensome regulations that chill economic growth.”

National Ocean Industries Association Pres. Randall B. Luthi said the organization backs cutting red tape for energy development and was encouraged by Obama’s pledge to speed up the federal oil and gas permitting process. The administration also has the power to increase federal oil and gas revenue by simply opening more parts of the US Outer Continental Shelf for leasing and development, Luthi added.

But Western Energy Alliance President Tim Wigley said it’s time for Obama to match his publicly stated support for more domestic oil and gas development with policies that actually try to accomplish that.

Regina Hopper, president of America’s Natural Gas Alliance, also welcomed Obama’s encouraging words about domestic gas development, but added that US policies relating to the industry must all pull in a consistent and constructive direction.

Kathryn Z. Klaber, president of the Marcellus Shale Coalition in Pittsburgh, said producers in that region appreciated Obama’s pledge to streamline federal energy permitting.

American Gas Association President Dave McCurdy, meanwhile, applauded the president’s Partnership to Rebuild America which would attract private capital to upgrade natural gas and other critical US infrastructure.

Contact Nick Snow at nicks@pennwell.com

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

FWS issues Shell letter of authorization on Chukchi Sea lease

07/01/2015 The US Fish & Wildlife Service issued Shell Gulf of Mexico Inc. a letter of authorization (LOA) related to the potential disturbance of polar b...

USGS: Water usage for fracturing varies widely across shale plays

07/01/2015 The volume of water required to hydraulically fracture wells varies widely across the country, according to the first national analysis and map of ...

Case for Keystone XL has grown stronger, TransCanada tells Kerry

06/30/2015 Canada is taking strong steps toward combating climate change, and the proposed Keystone XL pipeline crude oil pipeline remains in the US national ...

Court rejects BP, Anadarko Macondo appeals

06/30/2015 BP PLC and Anadarko Petroleum Corp. have lost separate appeals to the US Supreme Court to overturn a lower-court decision expanding their financial...

Senate Democrats outline broad energy goals to nation’s governors

06/30/2015 Forty-five US Senate Democrats outlined broad energy policy goals including more clean energy technology investments, infrastructure improvement, a...

Group suggests principles for Alberta royalty review

06/29/2015 The Canadian Association of Petroleum Producers (CAPP) has suggested that four principles guide Alberta in an oil and gas royalty review planned by...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected