It was perhaps the most memorable phrase in the State of the Union, and it’s already been picked up far and wide by a soundbite-starved media: “Keeping America competitive requires affordable energy. And here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world.”
Indeed, whereas health care was supposed to be the big, substantive issue of the SOTU, Bush’s discussion of energy suggests it will be a top administration priority. Well, sort of.
Usually, top domestic policy initiatives in a SOTU suggest the president is looking for new legislation. That’s not quite the case here — the president recently signed what Republicans consider the most sweeping energy legislation in years. Instead, Bush was talking about a new, long-term strategy.
“So tonight, I announce the Advanced Energy Initiative — a 22-percent increase in clean-energy research — at the Department of Energy, to push for breakthroughs in two vital areas. To change how we power our homes and offices, we will invest more in zero-emission coal-fired plants, revolutionary solar and wind technologies, and clean, safe nuclear energy.
“We must also change how we power our automobiles. We will increase our research in better batteries for hybrid and electric cars, and in pollution-free cars that run on hydrogen. We’ll also fund additional research in cutting-edge methods of producing ethanol, not just from corn, but from wood chips and stalks, or switch grass. Our goal is to make this new kind of ethanol practical and competitive within six years.
“Breakthroughs on this and other new technologies will help us reach another great goal: to replace more than 75 percent of our oil imports from the Middle East by 2025. By applying the talent and technology of America, this country can dramatically improve our environment, move beyond a petroleum-based economy, and make our dependence on Middle Eastern oil a thing of the past.”
All of this sounds very nice. Unfortunately, the plan is neither new nor bold, and isn’t nearly as ambitious as the president would have us believe.
First, the sum total of Bush’s new investments is, according to the Wall Street Journal today, “about $300 million.” That’s not much. Second, cutting oil imports from the Middle East by 75% over two decades will hardly make a difference.
Since Bush took office, net foreign imports have risen from 53 percent to 60 percent. By focusing on his goal of reducing use of Middle Eastern oil by 75 percent, he singled out the share that is not rising. Oil from the Persian Gulf region now represents 11 percent of U.S. oil consumption, less than when Bush was inaugurated.
It’s also not altogether clear what Bush means by his choice of words.
It was not clear exactly how Mr. Bush was defining his goal. There is a big difference between reducing such imports 75 percent below today’s levels and reducing such imports 75 percent below what they would otherwise be if American supply and demand continued on their present course.
For the first 11 months of 2005, according to the most recent data available, the United States used about 20.6 million barrels of oil a day and imported about 60 percent of that. About 17 percent of petroleum imports came from the Persian Gulf.
By contrast, the United States imported 44.5 percent of its oil in 1995, and about the same share came from the Middle East as it does today.
But some energy analysts said on Tuesday that Mr. Bush’s focus on Middle Eastern oil glossed over a more basic problem: the United States’ dependence on oil in general.
“It doesn’t matter if we don’t buy oil from the Middle East,” said Gal Luft, a co-director of the Institute for the Analysis of Global Security, a research organization in Washington. If the United States does not buy oil from the Middle East, he said, “someone else will, supporting the same regimes.”
We get less than a fifth of our oil from the Middle East. Bush’s new goals are modest to the point of comedy.
Something to keep in mind when the White House plays this issue up over the next couple of months.