Bush: No 'short-term fixes' to energy woes

Bush

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WASHINGTON (CNN) -- Speaking just hours after California began rolling blackouts, President Bush said Monday there are "no short-term fixes" to the nation's energy woes, but his administration is dedicated to finding a long-term solution.

Bush said the United States must become less dependent on international sources for its energy by conducting more exploration for oil, gas and coal within its boundaries. He added that such exploration must be done using good conservation methods.

"One thing is for certain: There are no short-term fixes. The solution for our energy shortage requires long-term thinking," Bush told reporters during a meeting with his energy task force.

California began rolling blackouts for the second time this year after its systems were stretched to capacity. The blackouts affect about 500,000 homes.

Bush said the nation is not generating enough of its own energy supply. He stressed that his administration has ordered federal agencies to expedite the review and licensing of new power plants in California.

"The energy crunch we're in is a supply-and-demand issue. And we need to reduce demand and increase supply," Bush said.

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Earlier Monday, Energy Secretary Spencer Abraham said the Bush administration will present a "very comprehensive and balanced" energy plan in coming weeks, one that would reduce U.S. reliance on international sources.

In an interview with CNN, Abraham said this country is at the mercy of OPEC nations, a situation Bush has promised to change.

"I think it's important for the United States to be less at the mercy of foreign countries and their decision-making and politics, and more under our own control to address these problems," Abraham said, two days after the Organization of Petroleum Exporting Countries agreed to cut oil output by a million barrels a day.

But Bush brushed off questions about OPEC's decision being a rebuff to his administration, saying the ministers were reacting to what they saw as decreasing demand.

"The Saudi minister made it clear that he and his friends would not allow the price of crude oil to exceed $28 a barrel. That's very comforting to the American consumer and I appreciate that gesture," said Bush.

Crude oil futures closed in New York Monday at $26.15 a barrel.

Bush also insisted that if gasoline prices went up, it would be because the United States did not have enough refining capacity.

"We haven't built a refinery in 25 years in America. We're not generating enough gasoline to meet demands," he said.

"It's the same as natural gas, we're not exploring for enough national gas to meet demand. We're not building enough power-generating plants to meet demand, and we're beginning to pay the price."

At an afternoon address before the U.S. Chamber of Commerce, Abraham said the Bush plan would move beyond the "stale debate" of past years and said the administration would submit legislation reflecting its energy priorities.

"Our national energy policy will stress the need to diversify America's energy supply," Abraham told the business executives, saying coal, nuclear power, natural gas, even windmills, should be part of that equation.

"It will leapfrog the myths that stifle change," Abraham said, "rejecting the notion that there is no middle ground between environmental protection regardless of the cost and energy exploration regardless of the impact."

Bush, citing rising oil and gas prices, along with the electricity shortages in California, has said there is an energy crisis in the nation.

Abraham's speech touched on the administration's goal of expanded domestic drilling as well as conservation efforts. The complete plan, Abraham said, will be released "in a few weeks."

Abraham defended the administration's goal of opening part of Alaska's Arctic National Wildlife Refuge for drilling. He said the drilling would only affect 2,000 acres of the refuge's 19 million acres, and said critics had exaggerated the administration's goal of drilling there.

As for the Bush plan, Abraham told CNN, "It will focus on conservation as well as production."

Many Democrats and environmental groups, however, have raised objections to some of Bush's proposals, including his support for drilling in the Alaskan refuge.

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