Obama Calls For Expanded Oil, Ethanol Production In US

WASHINGTON -(Dow Jones)- President Barack Obama on Wednesday called for expanding U.S. oil and ethanol production as part of a new agenda to help wean the nation away from imported oil.

In a speech at Georgetown University, Obama said there are no quick fixes to decreasing U.S. dependence on foreign energy sources.

"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," Obama said, according to a copy of his speech released by the White House.

The president's renewed call for more U.S. energy production comes as he faces stepped up pressure on two fronts: from Republican lawmakers who say he has limited oil exploration in the U.S. and consumer anxiety about higher gas pump prices, which are up on political unrest in oil-rich countries.

The president proposed three new goals in his speech. He set an overall goal of reducing oil imports by one third by 2025, building four new bio-fuel refineries to produce ethanol in the next two years and directing federal agencies to purchase only alternative-fuel vehicles by 2015.

The president has long touted the benefits of using renewable energies as a way to break U.S. dependence on imported oil. In his State of the Union Address in January, the president set a goal of having 80% of America's electricity come from clean energy sources by 2035.

Republicans in recent weeks have increased criticism on Obama's energy policies. In a speech Wednesday morning, Senate Minority Leader Mitch McConnell, a Republican from Kentucky, said the administration has cancelled dozen of oil drilling leases, declared a moratorium on drilling off the Gulf Coast and increased oil permit fees.

He said the administration has "done just about everything it can to keep our own energy sector from growing."

The Obama administration put a moratorium on drilling in the Gulf coast following the BP Plc (BP., BP.LN) oil disaster last year. The moratorium has since been lifted and the administration has issued seven deep-water oil drilling leases in recent weeks.

Obama referenced the oil spill in his remarks. He said his administration is encouraging offshore oil exploration "as long as it's safe and responsible."

He continued, "I don't think anyone's forgotten that we're not even a year removed from the largest oil spill in our history."

source: nasdaq