Obama's new 'New Energy' plan

More drilling in exchange for comprehensive energy legislation 24

Democrat Barack Obama on Friday said he would be willing to support some offshore drilling if it were necessary to enact a comprehensive energy plan, and indicated that he could support the bipartisan energy plan put forward by the Senate's "Gang of 10" that includes both drilling and a major investment in renewables.

The shift on drilling drew a lot of heat over the weekend, as pundits accused the candidate of flip-flopping on the issue, though Obama says he still doesn't actively support opening up more areas for leasing as a solution to energy concerns.

"My interest is in making sure we've got the kind of comprehensive energy policy that can bring down gas prices," said Obama, noting that he remains skeptical that drilling would provide much, if any, relief on gas prices.

"We can't drill our way out of the problem," he said. But, he continued, "I also recognize that in the House and the Senate, there are Republicans who have very clear ideas about what they want, and at some point people are going to have to make some decisions. Do we want to keep on arguing, or are we going to get some things done?"

In a speech in Lansing, Mich., this morning, Obama clarified his position on the issue. "While I still don't believe that's a particularly meaningful short-term or long-term solution, I am willing to consider it if it's necessary to actually pass a comprehensive plan," he told the crowd. "I am not interested in making the perfect the enemy of the good -- particularly since there is so much good in this compromise that would actually reduce our dependence on foreign oil."

Obama said his energy plan would include a "use it or lose it" approach to oil leases, requiring oil companies to develop the 68 million acres already under lease, or be forced to turn the leases over to another company. But he emphasized that more drilling won't affect the price of gas significantly, while continued addiction to foreign oil puts the country in peril from an economic, environmental, and national security perspective.

"This addiction is one of the most dangerous and urgent threats this nation has ever faced -- from the gas prices that are wiping out your paychecks and straining businesses to the jobs that are disappearing from this state; from the instability and terror bred in the Middle East to the rising oceans and record drought and spreading famine that could engulf our planet," he said.

One new item in Obama's energy plan is a call for the release of a portion of oil from the Strategic Petroleum Reserve in order to cut prices, a move that some Democrats in Congress have been calling for as well. Campaign energy policy director Heather Zichal said that this isn't a complete reversal of his previous position, though just a few weeks ago Obama said he did not support releasing oil from the reserve. She said his proposal would swap out light crude from the reserve for heavy crude, and is necessary in an energy crisis.

"Senator Obama has looked at this issue and he realizes Americans are suffering and he made the distinction that we do need to tap the strategic energy reserve," said Zichal, according to The Wall Street Journal.

In his speech today, Obama also touted his plan to issue an energy rebate to help deal with high gas prices. Families would receive a $1,000 rebate, and individuals would receive one for $500. His plan would use the proceeds of a windfall-profits tax on oil companies to fund his "Emergency Energy Rebate."

Obama also called for efficiency improvements to reduce the country's use of oil by the amount we currently import from the Middle East and Venezuela. He proposed higher fuel efficiency standards for automobiles, calling for 1 million plug-in hybrid cars to be on the road by 2015, and for a $7,000 tax credit for consumers who buy those vehicles. He said he plans to create 5 million new, green jobs through $150 billion in investments in clean energy and job training over the next decade.

He also pledged to adopt a "Renewable Portfolio Standard," mandating that 10 percent of the nation's electricity supply comes from renewables by 2012, and 25 percent by 2025, which he said would help spur jobs and bring new energy sources to the market.

"I will not pretend the goals I laid out today aren't ambitious. They are. I will not pretend we can achieve them without cost, or without sacrifice, or without the contribution of almost every American citizen," said Obama. "But I will say that these goals are possible. And I will say that achieving them is absolutely necessary if we want to keep America safe and prosperous in the 21st century."

Kate Sheppard is Grist’s political reporter.

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  1. Cameron Posted 3:51 am
    04 Aug 2008

    Obama Sells Out; Grist Sits Idly ByI understand compromising in order to get things done, but toeing the line on the environment is arguably the most pressing issue we face. For Obama to sell out--suggesting that drilling will bring down prices when anybody who's done any basic research knows it won't--is totally turning his back on the environment. The tradeoffs he names are an unambitious commitment to renewables and more incentives for ethanol, which is an absolute boondoggle. I would have hoped Grist would call Obama out. As the Talmud says, If not now, when? If not me, who?

    Cameron
  2. GreyFlcn Posted 4:24 am
    04 Aug 2008

    To put it simplyThe Renewable Energy Tax Credit (RETC) runs out in January.
    Thats over 60,000 jobs, and over 6,000MW of renewable energy development down the tubes if that happens. (Not to mention a brain-drain of the key professionals in this area overseas)
    Republicans have blocked the 2009 renewal of the RETC 8 times so far this year.
    Republicans have previously blocked it in 2000, 2002, and 2004. (It also lapsed 3 months into 2008) During those years, the market completely crashed.  
    There are ONLY 3 weeks left in September of this congress session before they close for the rest of the year.
    Democrats got 51 votes in the Senate.

    Democrats NEED 67+ votes to pass the renewal of the RETC.
    _
    So the only way that Democrats are going to get the RETC passed is if they give Republicans something they want.
    And while that may not be "ideal", thats what we have to deal with.

    -David Ahlport
  3. Brittanicus Posted 5:15 am
    04 Aug 2008

    Illegal Immigration! Energy Conservation...?You might want to ask your State representative energy conservation?  How much gas,  oil and electricity  we could save, if we sent illegal aliens packing.

    We cannot keep up the demand for it right now!  Oil!  Diversity Alliance for Sustainable America.(earthtimes) stated in it's article that if the U.S. grants amnesty and gives citizenship to 12 to 30 million illegal migrants already here, as McCain, Obama and the majority of Democrats propose.   That all those naturalized citizens could possibly add 120 million U.S. and foreign-born relatives to the U.S., in the next 20 years whom all will CONSUME MAJOR ENERGY.  Does the American people need to escalate the 315 million plus population, the census estimates we have now?  To a new total of 435 million?
    The executive director of  (DASA) admitted "Proposal to reduce energy costs in the U.S. will not work unless we also simultaneously curb U.S. population growth by reducing immigration and curbing teen pregnancies."   Severing  the illegal immigration occupation and deporting those already here is a good start,  but not the complete solution to this serious energy problem that cannot be reversed.  
    Unless another Nikola Tesla, an underrated genius of the 19th century invents a some new form of energy, we will be reliant on fossil fuels for years to come? Clean coal,  geothermal, eco-fuel, nuclear and of course wind power and solar. The latter is energy that is a perpetual source of unimaginable power that knows no bounds.
    The Save Act (H.R.5088) is an enforcement federal bill only, to start the EXODUS of foreign nationals illegally in AMERICA. NUMBERSUSA has all the unsuppressed facts
  4. GreyFlcn Posted 5:57 am
    04 Aug 2008

    re: BrittanicusIllegal foreign nationals pay far more taxes than the usual US citizen.  I hardly see how thats a bad thing.
    http://mediamattersaction.org/reports/fearandloathing/

    http://mediamattersaction.org/reports/fearandloathing/onl ...

    -David Ahlport
  5. eheath1000 Posted 6:55 am
    04 Aug 2008

    Re: To put it simplyAmen.
  6. Wolverine Posted 7:21 am
    04 Aug 2008

    The Problem Is His GoalObama's goal of lowering gasoline prices is wrong per se.  Higher gas prices have produced less driving and more public transit use.  Those who want to stop the destruction caused by consumption of oil should be pushing for higher gas prices, not lower ones.
  7. Delay And Deny's avatar

    Delay And Deny Posted 8:13 am
    04 Aug 2008

    As George Bush Said To John Kerry...

    ...in the second Presidential debate:
    In a speech in Lansing, Mich., this morning, Obama clarified his position on the issue. "While I still don't believe that's a particularly meaningful short-term or long-term solution, I am willing to consider it if it's necessary to actually pass a comprehensive plan," he told the crowd. "
    "Does anyone understand what he just said?"

  8. spaceshaper's avatar

    spaceshaper Posted 9:56 am
    04 Aug 2008

    Brittanicus - why stop there?Throw out out ALL the immigrants, from the sixteenth century on.

    The true meaning of life is to plant trees, under whose shade you do not expect to sit.
  9. Wolverine Posted 11:09 am
    04 Aug 2008

    That Was The Problem, SpaceshaperNative Americans had bad immigration policy, and we see where that got them.  Or as I joked with couple of Native American friends, this is what they got for feeding wild animals.
  10. Tasermons Partner Posted 12:11 pm
    04 Aug 2008

    States by name......Obama's plan only allows offshore drillin' in Georgia, Alabama, and the Carolina's...
    McCain's plan calls for drillin' only in the states that would allow it...
    ...and the only states that would allow it would be Georgia, Alabama, and the Carolinas...
    so, in essence... shrugs
  11. Delay And Deny's avatar

    Delay And Deny Posted 4:12 pm
    04 Aug 2008

    Politics Becomes Irrelevent

    Why Oil Really Fell Today--and Could Keep Falling
    http://www.usnews.com/blogs/capital-commerce/2008/08/04/w ...
    Bottom line: I think research into alternative energy technology is moving ahead way faster than the Washington politicians realize. (But we still need to exploit oil and coal and nuclear to bridge the gap from a hydrocarbon to post-hydrocarbon economy.) And it is all happening without spending trillions of dollars in taxpayer money for energy-themed Manhattan Projects or Apollo programs. This possible breakthrough came from MIT's Solar Revolution Project, which was funded to the tune of $10 million by telecommunications entrepreneur Arunas Chesonis. Heroic capitalism strikes again.
  12. Paleocon Posted 4:23 pm
    04 Aug 2008

    This isn't about energy or the environmentIt is about collectivism finding a modern home.
    They will never accept wind or solar farms if it means abundant, affordable energy and an increase in standards of living.
    This is merely a vehicle for wealth redistribution and social change.
    The day our roads are filled with tea-kettle "hydrogen" powered cars that "emit nothing but pure water" from their tailpipes is the day the left suddenly considers water vapor a greenhouse gas. And talk of disruptive micro-climates that will need to be studied...

    "...a 90 percent chance that the US has contributed .2 degrees F of temperature increase in the last 50 years..." The IPCC Consensus in perspective
  13. Delay And Deny's avatar

    Delay And Deny Posted 4:28 pm
    04 Aug 2008

    And Moore's Law is a Fairy Tale?They will never accept wind or solar farms if it means abundant, affordable energy and an increase in standards of living.
    Yeah, just like They didn't let us have personal computers that are more powerful than the Air Force computers of the 1980s...and how they didn't let us have access to the Internet...and how they banned all solar research so a company like First Solar couldn't be outperforming every stock on the market...and...
  14. perk Posted 10:25 pm
    04 Aug 2008

    ObamaI hope Grist isn't playing politics here.  I will think we would have roasted the other candidate for selling out to big-oil. Where is the outrage?
    Now, he is re-floating the terrible idea of using the petroleum reserve.
    Frankly, the high oil prices is the only effective cure for our fossil-fuel disease. There is a viable profit motive for conservation and alternative energy now.
  15. perk Posted 11:08 pm
    04 Aug 2008

    Maybe this explains the Obama adjustment ...Maybe this is why:
    http://www.politico.com/news/stories/0808/12304.html
    Obviously, it is political juggling, but could someone explain this to me? Who is for and who is against off-shore drilling here?
    It sounds like that all energy policy action is being blocked until after the election. Surprisingly, blocked by the Democrats. I read it as saying that under the new president, they will get the policy they are looking for. Or, lets make things really bad until election day. Not sure.
    Anyway, politics as usual by both parties.
  16. Paleocon Posted 1:31 am
    05 Aug 2008

    Try reading my post againAre you denying the strange "coincidence"?
    The fact that the environmental "movement" has at it's core an anti-Western, collectivist sentiment?
    Please point me in the direction of anyone in the mainstream environmental community who isn't a proponent of wealth redistribution and legislated "simple living".

    "...a 90 percent chance that the US has contributed .2 degrees F of temperature increase in the last 50 years..." The IPCC Consensus in perspective
  17. Paleocon Posted 1:38 am
    05 Aug 2008

    60,000 off the welfare rollsSounds great.
    As long as the welfare checks keep coming, there will be no reason to innovate.
    Now let's get after that criminal corn subsidy.  

    "...a 90 percent chance that the US has contributed .2 degrees F of temperature increase in the last 50 years..." The IPCC Consensus in perspective
  18. amazingdrx Posted 1:38 am
    05 Aug 2008

    StewieBrian, you clearly display  "...an anti-Western, collectivist sentiment?", when did Maoist zen psychobabble become "tres chic" around the dog park?



    http://amazngdrx.blogharbor.com/blog John Schneider, Northern Wisconsin
  19. dmarckini Posted 7:57 am
    05 Aug 2008

    Rebates and windfall profits taxHope Mr. Obama wakes up and stops trying to give something away to get votes.  We had one rebate which was a big waste of time and money, we don't need another.  We need to use oil and gasoline carefully because they are valuable resources.  Pulling oil out of the Strategic Petroleum Reserve subverts the goal of the reserve and just makes more available to be squandered.  Same with rebates--more money to spend on gas.  What we need is a change of lifestyle, and that doesn't come from giveaways.
  20. jas Posted 6:18 pm
    05 Aug 2008

    new dealI've heard people talk about a Green New Deal, and I wish Obama would amplify on that a bit... lots of employment generation possible from greentech as well as creating public transport infrastructure.  I agree with above that gas prices should be high and should stay high, but not without alternative forms of transport--it ends up hurting the poorest households.  Why not use the peace dividend from getting OUT OF IRAQ to help states and urban areas create rail and bus systems?
    Britannicus:  eew.  When in doubt, point at the (most recent) strangers among us.  Simple answers to hard questions...
  21. Paleocon Posted 3:34 am
    07 Aug 2008

    Just trying to keep up with the rhetoric hereMuch of what I read here is best expressed in a voice well-pickled by decades of daily pot smoking.
    No doubt for medicinal purposes.
    So..if I have to be Stewie...LOL.
    I appreciate a good sense of humor.  :-)

    "...a 90 percent chance that the US has contributed .2 degrees F of temperature increase in the last 50 years..." The IPCC Consensus in perspective
  22. splashy's avatar

    splashy Posted 7:21 pm
    07 Aug 2008

    Does a $7,000 tax credit help the poorTo buy a plug-in vehicle?
    If not, then it's just another thing to help those that already have money, while hurting the poor who will only be able to afford to buy gas guzzlers the way things are going.
    I always hate hearing about "tax credits" because that usually does not include the poor, who could really use the help getting to be more energy efficient. That's like getting help to make their homes more insulated. Doesn't happen because the programs that should be able to do that are unfunded, so the poor pay more in heating and cooling bills because they can't come up with the up front cost of sealing up their homes.
  23. Paleocon Posted 10:09 am
    08 Aug 2008

    It helps Obama buy votesBy taking money from me, Obama can buy quite a few votes. 20, actually. 3 will actually show up and vote, but that is enough.
    That is all that matters.
    Then there are all of the Professional Climate Pimps. We know who butters their bread and who they will vote for.

    "...a 90 percent chance that the US has contributed .2 degrees F of temperature increase in the last 50 years..." The IPCC Consensus in perspective
  24. aullman Posted 3:04 pm
    09 Aug 2008

    Remote work options save fuelAny energy plan that does not find a way to cut back on consumption is going to have only a limited impact on the price of oil.  The simplest way to cut back on oil consumption is to implement programs which support remote work environments for office workers around the country (especially in large cities with commuter congestion problems).  In the past, home telecommuting was the only option for working remotely.  
    There are other options these days.  Remote Office Centers lease individual offices, internet and phone systems to workers from multiple companies in shared centers located around the city and in the suburbs.  
    Every worker who is able to work remotely will save on all of the fuel that is normally used to get to work and back each day.  There is a benefit to workers who need to be onsite, since roadways would be less congested and there would be a lower demand for oil, which would cause the price to drop off.
    Working remotely may not sound glamorous or high-tech, but it is hard to argue with the savings.  After all, a car that drives 2 miles a day is going to use less gas than even the most efficient hybrid that has to travel 50 miles a day.

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