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President Urges ANWR Development
President Urges ANWR Development

George Bush In his address to the 16th Annual Energy Efficiency Forum
today, President George W. Bush focused on the need for a comprehensive
National Energy Plan that includes opening a small portion of the ANWR to
responsible oil development. The President stated that increasing domestic
production of oil is the best way to wean America from foreign sources of
oil, and by far the most promising site for oil in America is the Arctic
National Wildlife Refuge. Moreover, he cited new advances in exploration
and production technologies as proof positive that responsible development
can take place in ANWR without harming the wildlife or environment.

Technology now makes it possible to reach the oil reserves in ANWR by
drilling on just 2,000 of the 19 million acres. Developing this tiny area
could eventually yield up to a million barrels of oil every day -- and
that million barrels of oil a day would be -- would make us less dependent
on foreign sources of energy. Thanks to technology, we can reach ANWR's
oil with almost no impact on the land or local wildlife. To make America
less dependent, Congress needs to pass a pro-growth, pro-jobs,
pro-environment development of ANWR. It makes sense. It is an important
part of a comprehensive strategy.

WASHINGTON, June 15, 11:05 A.M. EDT

THE PRESIDENT: Thank you all. Thanks for the warm welcome. John, thanks
for the introduction. Thanks for the invitation to be here for the 16th
annual Energy Efficiency Forum. It's an important forum. By advancing the
national dialogue on the future of energy, you're helping us support the
cause of energy efficiency. And that's critical for our economy and it's
critical for the future of this nation.

You see, increasing energy efficiency will help consumers save money.
Increasing energy efficiency will leave American businesses with more
capital, will make American businesses more competitive. Increasing energy
efficiency will help reduce our energy consumption, and to help us achieve
a vital national goal, and that is making America less dependent on
foreign sources of energy. And that's what I want to talk to you all about
today -- a strategy to make us less dependent on foreign sources of
energy.

I want to thank John. I want to thank Bob Catell, who is the event host.
He's the Chairman of the United States Energy Association. I want to thank
Betty Arndt. I want to thank Barry Worthington. Thank you both for setting
this event up. I want to thank the Assistant Secretary, David Garman, of
the Department of Energy, for being here. I appreciate Pat Wood, the FERC
chairman -- where are you Pat? There he is, my fellow Texan. (Applause.)
How many children you got now? (Laughter.) Three, one on the way?
(Laughter.)

I want to thank your fellow commissioners -- Commissioner Brownell,
Commissioner Kelliher, Commissioner Kelly -- for joining you all. Thank
you all for coming; thanks for serving; appreciate what you do.
(Applause.)

I'm optimistic about this country's future. And Americans have a reason to
be optimistic, as well. Over the last two years we have added more than
3.5 million new jobs. More Americans are working today than ever before in
our nation's history. Home ownership in America is at an all-time high,
and that's good; we want more people owning something in America; we want
more small business owners, we want more home owners. I, personally, think
it would be good for the country if people had more control over their
retirement accounts. (Applause.)

Small businesses are flourishing, factory output is growing, exports are
at their highest level ever, families are taking home more of what they
earn. Because of our policies, our economy is growing -- and creating more
opportunity and increased prosperity for millions of our citizens, and
that's good news.

And to build on this success and to keep this economy growing, we need an
affordable, reliable supply of energy -- and that starts with pursuing
policies to make prices reasonable at the pump. Today, millions of
American families and small businesses are hurting because of higher
gasoline prices. If you're trying to meet a payroll, or trying to meet a
family budget, even small increases at the pump have a big impact on your
bottom line. For the sake of American families and American workers, this
country must take action now to deal with the causes of rising gasoline
prices.

The primary cause of rising gasoline prices is that the global demand for
oil is growing faster than global supply. Here in America, we have become
too dependent -- too dependent -- on the increasingly limited supply of
foreign oil for our own energy needs. For many years, most of the crude
oil refined into American -- into gasoline in America came from domestic
oil fields. In 1985, 75 percent of the crude oil used in U.S. refineries
came from American sources -- and only about 25 percent came from abroad.
Today, that equation is nearly reversed. In a relatively quick period of
time, only about 35 percent of the crude oil used in U.S. refineries is
produced here at home -- think about that -- while about 65 percent comes
from foreign countries like Saudi Arabia, Mexico, Venezuela and Canada. To
compound the problem, countries with rapidly growing economies, like India
and China, are competing for more of the world oil supply and that drives
up the global price of oil -- and that makes prices of gasolin

Our dependence on foreign oil is like a foreign tax on the American Dream
-- and that tax is growing every year. My administration is doing all we
can to help ease the problem. We're encouraging oil-producing countries to
maximize their production, so more crude oil is on the market to meet the
demands of the world. And we're going to make sure that consumers here at
home are treated fairly -- there's not going to be any price-gouging here
in America.

But people got to understand our dependence on foreign oil didn't develop
overnight, and it's not going to be fixed overnight. To solve the problem,
our nation needs a comprehensive energy policy. (Applause.) That's why one
of the first things I did when I came to office four years ago was to
develop a new energy strategy for America. And in my first months in
office, I sent Congress a plan to put our nation on the path to greater
energy independence. For four years, that United States Congress has
discussed and debated the plan -- with no result. So earlier this year, I
sent a clear message to Congress: Get a good energy bill on my desk before
the August recess. Now is the time for them to act.

The House has acted -- and I want to thank the leadership in the House.
And the Senate's turn is now up. It's now their time to get something
done. And they're beginning the debate on the energy bill this week. And
my advice is they ought to keep this in mind: Summer is here, temperatures
are rising, and tempers will really rise if Congress doesn't pass an
energy bill. (Applause.)

The American people know that an energy bill will not change the price of
gas immediately. But they're not going to tolerate inaction in Washington
as they watch the underlying problems grow worse. We have a responsibility
to confront problems. The American people expect us to act in good faith
here in Washington. To address the root causes of high gas prices, we need
to take four important steps toward one vital goal -- and that is making
America less dependent on foreign sources of oil.

The first step toward making America less dependent on foreign oil is to
improve conservation and efficiency. That's why this conference is an
important conference, and I want to thank you for holding it. Hybrid
vehicles are one of the most promising technologies immediately available
to consumers. There are some interesting things taking place in the market
place that will help achieve this part, this step of less dependency on
foreign sources of oil. Hybrid automobiles are powered by a combination of
gasoline and electricity. Some can travel twice as far on a gallon of fuel
as gasoline-only vehicles. Hybrids produce lower emissions. To help
consumers conserve gas and protect the environment, I propose that every
American who purchases a hybrid vehicle receive a tax credit of up to
$4,000. We're trying to encourage people to make right choices in the
market place that will make us less dependent on foreign sources of oil
and to help improve our environment.

We are also encouraging automakers to produce a new generation of modern,
clean-diesel cars and trucks. My administration has issued new rules that
will remove more than 90 percent of the sulfur in diesel fuel by 2010.
Clean diesel technology will allow consumers to travel much farther on
each gallon of fuel -- without the smoke and pollution of past diesel
engines. To encourage this promising technology, Congress should extend
the tax incentives for the purchase of hybrid vehicles to clean diesel
cars and trucks. You see, America leads the world in technology -- and we
need to use that technology to lead the world in fuel efficiency.

The second step toward making America less dependent on foreign oil is to
produce and refine more crude oil here at home in
environmentally-sensitive ways. By far the most promising site for oil in
America is the Arctic National Wildlife Refuge in Alaska. Technology now
makes it possible to reach the oil reserves in ANWR by drilling on just
2,000 of the 19 million acres. Developing this tiny area could eventually
yield up to a million barrels of oil every day -- and that million barrels
of oil a day would be -- would make us less dependent on foreign sources
of energy. Thanks to technology, we can reach ANWR's oil with almost no
impact on the land or local wildlife. To make America less dependent,
Congress needs to pass a pro-growth, pro-jobs, pro-environment development
of ANWR. It makes sense. It is an important part of a comprehensive
strategy.

We also need to improve our ability to refine crude oil into gasoline and
other products. Do you realize this? There hasn't been a single new
refinery built in America since 1976. To meet our growing demand for
gasoline, America now imports about a million barrels of refined gasoline
every day. That means about one out of every nine gallons of gas you get
at the pump is refined in a foreign country. Not only are we dependent on
foreign sources of oil, we're becoming more dependent on foreign sources
of gasoline.

To help secure our gasoline supply and lower prices at the pump, we need
to encourage existing refineries to expand their capacity. So the
Environmental Protection Agency is working to simplify rules and
regulations for refinery expansion, and I'm confident we can do so and
maintain strict environmental safeguards. We also need to build new
refineries. So I've directed federal agencies to work with states to
encourage the construction of new refineries on closed military
facilities, and to simplify the permitting process for these new
refineries. By promoting reasonable regulations, by being wise with policy
we can refine more gasoline at home and that will make us less reliant on
foreign sources of gasoline.

The third step toward making America less dependent on foreign oil is to
develop new alternatives to gasoline and diesel. Two years ago, my
administration launched an ambitious program called the Hydrogen Fuel
Initiative. We've already dedicated $1.2 billion over five years to this
effort to develop hydrogen-powered fuel cell vehicles. Last month I
visited a hydrogen fueling station right here in Washington. I saw cars
and vans that run on hydrogen fuel cells instead of gasoline. And these
cars and vans emit pure water instead of exhaust fumes. The energy bill
will authorize additional funds for this vital initiative. With bold
investments now, we can begin to replace a hydrocarbon economy with a
hydrogen economy -- and make it possible for our children, today's
children to take the driver's test in a completely pollution-free vehicle.
(Applause.)

We've got to be aggressive about finding alternative sources of fuel. And
one such source is ethanol. Ethanol comes from corn -- and we're pretty
good about growing corn here in America, we've got a lot of good corn
growers. Therefore, it makes sense to promote ethanol as an alternative to
foreign sources of oil. Ethanol can be mixed with gasoline to produce a
clean, efficient fuel. In low concentrations, ethanol can be used in any
vehicle. And with minor modifications, vehicles can run on a fuel blend
that includes about 85 percent ethanol and 15 percent gasoline. Ethanol
helps our farmers find a new markets and helps us replace foreign crude
oil. I mean, I like the idea of spending money on research to make ethanol
more feasible, so that some day an American President says, show me the
crop report. (Laughter.) As opposed to, how many barrels of crude oil are
we importing?

By the way, we can get the same type of alternative fuel from soybeans.
It's called biodiesel. And that's a promising source of energy. I went to
a biodiesel refinery in Virginia that is making fuel from soybean oil.
Other producers are making biodiesel, by the way, from waste products like
recycled cooking grease. Biodiesel can be used in any vehicle that runs on
regular diesel. So as you get more clean diesel engines in America,
biodiesel becomes an alternative fuel for them. It burns more completely
and produces less air pollution than gasoline or regular diesel.

It makes sense for the energy bill to encourage renewable sources of
energy that are becoming much more practical and much more economic in
today's world. To encourage greater use of ethanol and biodiesel, my
administration supports a flexible, cost-effective renewable fuel standard
as a part of the energy bill. This proposal would require fuel producers
to include a certain percentage of ethanol and biodiesel in their fuel. I
proposed $84 million in the 2006 budget for ongoing research into advanced
technologies that can produce ethanol from farms, forests, or even
municipal waste dumps. We've got a chance here as we go forward to do
something smart, and that is figure out ways to use that which we grow or
that which we dispose of to replace foreign sources of oil.

The fourth step toward making America less dependent on foreign oil is to
help other nations use technology to reduce their own demand for crude oil
and gasoline. Much of the current and projected rise in gasoline prices is
due to rising oil consumption in Asia. These are emerging economies that
are consuming more natural resources - one of which is oil. As Asian
economies grow, their demand for oil is growing -- much faster than the
global supply is growing. And that drives up price. It's in our interest
to help countries like India and China become more efficient users of
hydrocarbons -- that will help take the pressure off global supply, it
will take the pressure of gasoline prices here at home.

At the G8 meeting next month, I'll ask other world leaders to join America
in helping developing countries find practical ways to use cleaner, more
efficient energy technologies. When we lower the global demand for oil,
Americans will be better off at the gas pump -- and future generations
will breathe cleaner air, too.

As we make America less dependent on foreign oil, we are pursuing a
comprehensive strategy to address other energy challenges facing our
country. Along with high gas prices, many families and small businesses
are confronting rising electricity bills. And summer air conditioning
costs are going to make it even more expensive to power homes and office
buildings.

To help our consumers save on their power bills, we must continue
expanding our efforts to improve conservation and efficiency. The energy
bill would extend the Energy Star program. This program encourages the
sale and production of energy-efficient products -- like super-efficient
refrigerators that use less energy than a 75-watt light bulb. Advances in
efficiency are saving American consumers more money. In 2001, the average
American family spent about half as much to heat its home as it did in
1978. One day, technologies like solar panels and high-efficiency
appliances and advanced insulation could even allow us to build
"zero-energy homes" that produce as much energy as they consume.

We must also harness the power of technology to help us deliver
electricity more efficiently. For example, the Department of Energy is
funding research and development of super-conducting power lines. It's
important research because it will enable us to more efficiently move
electricity. Really what we need to do is bring our electricity grid into
the 21st century. Congress should make reliability standards for electric
utilities mandatory -- not optional. We have modern interstate grids for
our phone lines and highways. It's time for this country to build a modern
electricity grid so we can protect American families and businesses from
damaging power outages.

To power our growing economy, we also need to generate more electricity.
Electricity comes from three principal sources: coal, natural gas and
nuclear power. To ensure that electricity is affordable and reliable,
America must improve our use of all three.

Coal is our nation's most abundant energy source, and America is blessed
with enough coal to last for the next 250 years. Yet, coal also presents
an environmental challenge. So when I ran for President in 2000, I pledged
to invest $2 billion over 10 years for research into clean coal
technologies to remove virtually all pollutants from coal-fired power
plants. My budget for 2006 brings clean coal funding to $1.6 billion over
five years -- puts us on pace to exceed my pledge. And there's no doubt in
my mind we can succeed. There's no doubt in my mind this great country can
use technology to be able to burn coal in environmentally friendly ways.
(Applause.) Congress needs to pass the Clear Skies Initiative, which is a
reasonable -- (applause) -- it's a good piece of legislation. It's sound
policy. They need to pass it. And by passing it, not only will we clean
the environment, but it will result in tens of billions of dollars in
clean coal investments by private companies. America must invest in cle

Improving our electricity supply also means making better use of natural
gas. The United States has the sixth largest proven reserves of natural
gas in the world. We need to increase environmentally-responsible
production of natural gas from our federal lands. And to further increase
our natural gas supply, Congress needs to make clear federal authority to
choose sites for new receiving terminals for liquefied natural gas.

We need to expand our nation's use of nuclear power. America has not
ordered a nuclear power plant since the 1970s. France, by contrast, has
built 58 plants in the same period of time -- and today, France gets more
than 78 percent of its electricity from safe, low-cost nuclear power. It's
time for America to start building again. So I've directed the Department
of Energy to work with Congress to help pass legislation that will reduce
uncertainty in the nuclear plant licensing process. We're also working
with Congress to provide other incentives -- such as federal insurance to
protect the builders of the first four new plants against lawsuits,
bureaucratic obstacles, and other delays beyond their control. To build a
secure energy future for America, we need to expand production of safe,
clean nuclear power. (Applause.)

So I appreciate you letting me come by today to talk about a comprehensive
strategy, a comprehensive way forward to achieve one overriding goal --
and it's an important goal to achieve. And the goal is to address the root
causes of higher energy costs by diversifying our energy supply and
reducing our dependence of foreign sources of energy. (Applause.) For the
past four years, Americans have been paying the price for delaying a
national energy policy. They've been watching their power bills go up.
They've seen blackouts. And they're watching the price of gasoline rise at
the pump. The energy bill will help us make better use of the energy
supplies we now have and will make our supply of energy more affordable
and more secure for the future. To make this promise real tomorrow, we've
got to act today. Now is the time. Now is the time to stop the debate and
the partisan bickering and pass an energy bill.

I look forward to working with members of the Congress to come up with
reasonable comprises on outstanding issues such as MTBE. But for the sake
of national security and for the sake of economic security, the Congress
needs to pass an energy bill now. (Applause.)

Now is the time to act. Now is the time to put a strategy -- we should
have done this 10 to 15 years ago. Now is the time to move. And history
shows that American innovation is never in short supply -- that's the good
news. We're going to harness our innovative spirit in this new century,
and by doing so we will leave our children and grandchildren a cleaner, a
healthier, and a more secure America.

May God bless you all. (Applause.)

END 11:32 A.M. EDT
:: Posted on June 15, 2005 ::
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