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April 25, 2006
Samuel Bodman
Good afternoon. I have just returned from the International Energy Forum in Doha, Qatar, in the Middle East, where I met with Ministers from leading oil-producing and consuming nations around the world. We discussed ways to improve international communication and cooperation, promote greater stability in world energy markets, and ensure adequate oil supplies for the future. President Bush is committed to enhancing our energy security over the long term, through the Advanced Energy Initiative and the American Competitiveness Initiative--which are using the power of science and technology to develop clean, alternative energy sources, and reduce our dependence on imported oil. We are also working to ease the burden of high gasoline prices in the near term. As the President outlined in his remarks to the Renewable Fuels Association this morning, our Administration is implementing a four-point plan:
I will be happy to go into further details on these and other matters as I answer your questions. Joan, from Virginia writes: Samuel Bodman Its true that the global demand for oil continues to grow and suppliers are having a tough time keeping up. This is resulting in higher gasoline prices for all of us. President Bush is very concerned about high gasoline prices and the effect that they have on the American family. I wish there was a magic wand that I could wave that would lower gas prices. But I cant. What I can do, however, is push for more domestic production of crude oil this means gaining full support from our Congress to drill in the northern slope of Alaska (ANWR, as its referred to) and in the Outer Continental Shelf. We can continue to support investment and research and development into all kinds of cleaner and renewable sources of energy; this includes ethanol and hydrogen to power vehicles. We can also continue to work with Americans to conserve fuel as best they can whether its carpooling, consolidating trips or even properly inflating your tires - as the President said today, every drop counts. As for your question regarding energy prices fluctuating several times a day, well, the world market sets the prices of gasoline. Just like the stock market changes minute-by-minute, so too does the worlds crude oil market. By being responsible market participants, enacting sound policies and fostering greater coordination through the sharing of data and information, we will serve our people and the world economy well. Its important now that I point out that we have been decades getting ourselves backed into the corner that we are now in. And it will be years, if not decades, before we are able to get ourselves out, which is why President Bushs new Advanced Energy Initiative is critical in reducing our dependence on foreign sources of oil. The Advanced Energy Initiative seeks to reduce our dependence on imported oil. As part of President Bushs 2007 budget submitted to Congress in February, $2.1 billion has been requested to invest in new energy technologies including hydrogen, hybrid battery technologies, biomass and cellulosic ethanol, to name a few. Already there are millions of cars on the road that can use ethanol-based fuel, called E-85. Its called E-85 because 85% of the fuel is ethanol and 15% is gasoline. I would encourage all Americans to look in their owners manual to see if their car is a flex-fuel vehicle and it if can run on E-85. Or, if youre buying a new car, ask the dealer if the car can run on ethanol. What we need to do now, and what the President wants to do, is find more feedstock from which we can produce ethanol. Currently we use about 14% of our nations corn crop to produce ethanol. If funded by Congress, the Advanced Energy Initiative will invest $150 million in research into cellulosic ethanol to see how we can use non-edible bio-products like corn stover (the corn stalk), woodchips, and switchgrass to produce fuel. Already we use about 4 billion gallons of ethanol a year in the U.S. By the end of this year well probably get up to about 5.5 billion gallons. If we can increase that even more, we can reduce our dependence on foreign sources of fuel and also loosen our overall need for crude oil which we hope would have a moderating affect on prices.
More information on the Advanced Energy Initiative can be found at /stateoftheunion/2006/energy Dennis, from Loveland, Colorado
writes: Samuel Bodman Our strategy has consistently focused on both near-term advances and long-term visionary breakthroughs that will fundamentally transform the way we produce and use energy. In the near term, the Presidents Advanced Energy Initiative calls for a 65% increase in spending for biomass to make ethanol commercially competitive by 2012, which could displace up to 30% of the Nation's current fuel use. We have successfully increased auto fuel economy standards twice for light trucks and SUVs by 15%, from 20.7 miles per gallon to an average of 24.0 miles per gallon, under a reformed fuel economy system. Also as part of the energy bill signed last year, the President signed into law tax credits on the purchase of new hybrid vehicles for up $3,400, for businesses on solar energy equipment for up to 30% of the cost, and for individuals installing solar powered water heaters in their homes for up to $2,000. In the longer term, by advancing hydrogen technologies and investing in emissions free nuclear power production, we can further reduce our reliance on fossil fuels and transform how we power our homes and businesses and how we power our automobiles.
Also in the State of the Union Address the President announced the American Competitiveness Initiative which is a doubling of the budgets for research in the physical sciences throughout the federal government. We need to reinvigorate math and science education in the U.S. Its by honing and developing these skills that we can re-energize our manufacturing sectors and create new and alternative sources in years to come. Henry, from Avon, OH
writes: Samuel Bodman First, the crude oil market is volatile. This has to do with geopolitical issues including instability in some parts of the oil producing world and also with increasing demand worldwide for crude oil. Oil is bought and sold on a world market. Because economies are growing around the world, so too is the need and desire for energy sources like oil. Hopefully we will see more supply come back, especially in the Gulf of Mexico where its been reported that one of the large oil platforms that was damaged in the hurricanes will be coming back online next month. That could add an additional 140,000 barrels of oil and natural gas a day to our domestic supply. Second, some U.S. refining capacity is still offline as a result of the devastating hurricanes last summer. We currently have about 87% of our pre-Hurricane Katrina refining capacity back online. Some more will be coming back as refineries complete routine maintenance. Third, the industry is phasing out MTBE as the oxygenate in gasoline and using ethanol. This is creating a problem in the transportation and distribution of ethanol. Unlike MTBE, ethanol cannot be shipped with gasoline through the pipelines from the refineries. Ethanol has to be transported by barge or truck. In some parts of the country this has led to an additional strain on supply. But as the transportation infrastructure gets worked out over the next several weeks and months we should see this smooth out. Finally, the industry is switching from the winter blend of gasoline to the summer blend. This happens every year as we switch blends to help reduce emissions during the summer driving season. The President has proposed that the EPA grant waivers where this is causing special difficulties. The epa.gov site might be your best bet to obtain more information.
As I mentioned to Joan earlier, President Bush has announced the Advanced Energy Initiative--a 22% increase in clean-energy research at the Department of Energy. If we are able to fully implement the Advanced Energy Initiative, we could reduce our reliance on foreign sources of oil by 75 percent by the year 2025. Robert, from Pittsburgh, Pennsylvania
writes: Samuel Bodman Rhonda, from Idaho writes: Samuel Bodman Evelyn, from Cottontown, TN
writes: Samuel Bodman
One issue with using corn solely as the feedstock for ethanol is that we use so much of it. Currently, about 3 percent of our nations fuel supply comes from ethanol, but we use 14 percent of the nations corn supply to produce that. The President and I want to see this nation increase its use of ethanol in order to do that we need to find sources other than corn. Thats why the president has proposed $150 million as part of his Advanced Energy Initiative for research into biomass which will help us look into creating ethanol from non-edible products like corn stalks, woodchips, and switchgrass. Elliot, from St. Cloud, MN
writes: Samuel Bodman
We are all affected by high gasoline prices. The president has said that high gasoline prices are like a tax on the American family. In addition to the President's Advanced Energy Initiative, President Bush just this morning laid out a four point plan to help alleviate gasoline supply constraints. It includes ensuring that there is no fraud in the market, or manipulation of prices; promoting greater fuel efficiency; expanding the availability of oil and gas supplies; and investing in clean and renewable alternatives to oil. Amir, from Tel-Aviv, Israel writes: Samuel Bodman Consumers can take a number of steps to save money by increasing the mileage they get from a gallon of gas. Some of these steps include:
For more tips on how to save gas, log on to www.fueleconomy.gov. Mel, from L.A. writes: Samuel Bodman
President Bush believes that the United States needs to take advantage of this new technology as well. That's we why are very excited about a new initiative that we have proposed, called the Global Nuclear Energy Partnership. This partnership, which we call GNEP, would expand the availability of safe, emissions-free electricity by developing new technologies for recycling nuclear fuel. This will greatly reduce the risk of nuclear materials falling into the wrong hands, while also lessening the amount of waste for ultimate disposal. You can read more about the program at www.gnep.energy.gov. Daniel, from Lakeville, CT
writes: Samuel Bodman The Presidents Advanced Energy Initiative calls for an increase of $46 million in funding for hydrogen technology research and a substantial portion of that money would be used for basic research in materials science to address this fundamental challenge. I am confident that a workable solution can and will be found and we will meet our goal of having practical and cost-effective hydrogen-powered vehicles on the road by 2020. We want to see plug-in hybrid vehicles become a viable option in the marketplace. This would allow drivers to travel greater distances on electric power alone than is possible with todays hybrids, which generate electric power from braking. Further technical work on a new generation of battery technology is needed before plug-ins can be a reality. The Presidents Advanced Energy Initiative includes $6.7 million for additional spending on this research in next years budget. Earlier today, the President called on Congress to make all hybrid and clean diesel vehicles sold this year eligible for tax credits. Hybrid vehicles run on the combination of a traditional engine and an electric battery which allow hybrid cars and trucks to travel about twice as far on a gallon of fuel as gasoline-only vehicles. More than 200,000 hybrid and clean diesel vehicles were sold in the United States last year the highest sales in history. The Energy Bill President Bush signed into law expanded the tax credit for purchasers of hybrid and clean diesel vehicles to as much as $3,400, but these tax credits apply to only a limited number of hybrid and clean diesel vehicles for each manufacturer.
Samuel Bodman |