Reduce dependence on foreign oil

Obama advances in gas goal drive

Updated: Monday, April 5th, 2010 | By Catharine Richert

The last time we visited President Barack Obama's promise to reduce oil consumption, he'd been pushing a number of initiatives meant to lower fuel consumption and improve energy efficiency.

The approval of new fuel efficiency standards for cars and light trucks has advanced this promise further.

The new rules, which were proposed in May 2009 and put on the books April 1, 2010, will require cars and trucks manufactured starting in 2012 to have an average fuel economy of 35.5 miles per gallon by 2016.

According to the Obama administration, the mandate will also save consumers money and reduce oil consumption.

Here are the specifics:

Better fuel efficiency will save about 1.8 billion barrels of oil over the lifetime of the vehicles regulated under the new law. On the campaign trail, Obama specifically said that he wanted to save about 2.5 million barrels of oil daily. Quick math tells us that, on average, the new rules will save that much per day over a period of about two years. The trouble here is that Obama did not give a time frame on this part of his promise; he did not specify how long he wanted to save 2.5 million barrels of oil per day.

The Obama administration also says that the rules will take the equivalent of 50 million cars and light trucks off the road in 2030, which was also part of Obama's original promise.

Obama promised to save consumers $50 billion at the gas pump. This part of his promise is trickier to measure. Officials say that "the rules could potentially save the average buyer of a 2016 model year car $3,000 over the life of the vehicle." So, that means that upwards of 17 million people would have to buy new cars in 2016, and at best save $3,000 over the lifetime of their new cars to meet Obama's $50 billion goal.

Another recent announcement from the Obama administration could increase the amount of oil produced domestically even further. On March 31, 2010, Obama said that he would be opening up new areas to drilling, though critics say that the amount of oil new drilling will produce won't be nearly enough to satisfy American demand for fossil fuels for that long.

So, Obama has made some important headway on this promise. But we're still not sure how these new rules will impact how much people pay for gas. Furthermore, some of Obama's other initiatives to improve energy efficiency and reduce reliance on fossil fuels aren't finished yet. As a result, we'll be leaving this promise at In the Works for now.

Sources:

The National Highway Traffic Safety Administration, DOT, EPA Set Aggressive National Standards for Fuel Economy and First Ever Greenhouse Gas Emission Levels For Passenger Cars and Light Trucks, April 1, 2010
Reuters, Obama opens new oil drilling offshore in climate drive, by Jeff Mason and Tom Doggett, March 31, 2010

Obama initiatives meant to reduce dependence on oil

Updated: Monday, October 12th, 2009 | By Catharine Richert

On the campaign trail, Barack Obama pledged to wean the United States off foreign oil.
 
"I will set a clear goal as president: In 10 years we will finally end our dependence on oil in the Middle East," he said when he accepted the Democratic nomination for president.
 
That's no small thing, and Obama has taken some steps to come through on his promise.
 
Here are some examples:
 
Ending fossil fuel subsidies
 
On Sept. 25, 2009, G-20 leaders rallied behind Obama's plan to phase out about $300 billion in fossil fuel subsidies, meaning tax breaks and government assistance for coal and oil. The move will help reduce carbon emissions — by about 10 percent in 2050 — but the White House is also portraying the decision as a way to reduce the United States' dependence on foreign oil.
 
Here's their reasoning: Most of those subsidies go to foreign oil producers. Sending that money overseas impedes investment in energy sources, particularly renewable fuels, at home.
 
Support renewable fuel
 
Taking its cues from California, the Environmental Protection Agency announced on May 26, 2009, that it was planning to increase the Renewable Fuel Standard, an existing mandate that requires gasoline to be blended with ethanol or diesel with biodiesel, from 9 billion gallons of of blended fuel to 36 billion gallons in by 2022. The administration will use the standard to set greenhouse gas limits on these renewable fuels — officially called a Low Carbon Fuel Standard — as well. For example, biofuels would have a minimum 20 percent reduction in greenhouse gas emissions, and advanced and cellulosic biofuels — fuel made from left over biomass such as wood chips — would need to have a 50 or 60 percent reduction in greenhouse gas emissions, respectively.
 
Meanwhile, buried in the cap-and-trade bill now pending in Congress is a provision that would require some electricity companies to produce at least 10 percent of their energy from renewables in 2010 and 20 percent of their energy from renewable resources by 2020.
 
And the stimulus package was chock-full of incentives for renewable energy production, including $2.5 billion for "applied research, development, demonstration and deployment activities" that alternative energy companies will be able to tap into. Of that, the bill earmarks $800 million for biomass projects, $400 million for geothermal projects and another $50 million for research to improve information and communications technology. But that leaves $1.25 billion for such things as solar and wind research.
 
Increasing Energy Efficiency
 
Obama has also used the cap-and-trade bill to advance his energy efficiency agenda. For example, under the bill, new buildings will be 30 percent more energy efficient in 2012 and 50 percent more efficient in 2016. Those standards will increase 5 percent every three years. So by 2030, new buildings will be 75 percent more efficient than they are today.

Making vehicles more efficient is another part of Obama's strategy to reduce U.S. dependence on foreign oil. The Transportation Department and the Environmental Protection Agency are drafting new rules that would increase fuel efficiency by an average of 5 percent a year. By 2016, cars and trucks would be 40 percent more efficient than today's vehicles, according to Obama's proposal.
 
So, Obama has taken multiple steps toward reducing our dependence on foreign oil. But he did not set a time frame for his goal, and many of these individual efforts are still making their way through Congress and administration bureaucracy. So, for now, we'll rate this one In the Works.

Sources:

Los Angeles Times, G-20 leaders pledge to phase out fossil fuel subsidies , by By Jim Tankersley, Sept. 26, 2009

ABC News, Obama pledges to end oil dependency , By Karina Rusk,  Aug. 29, 2008

Associated Press, Obama wants worldwide end of fossil fuel subsidies , By Seth Borenstein, Sept. 23, 2009