Obama Calls for Energy Security Trust To End Oil Dependence


  • President Obama Picture

    President Obama Picture

    President Obama wants an "Energy Security Trust" as a way to protect Americans from spikes in gas prices. | February 13, 2013

Just the Facts:
  • President Obama outlined a proposal for an "Energy Security Trust" as a way to deal with "the painful spikes in gas prices" in his State of the Union address on Tuesday.
  • "I propose we use some of our oil and gas revenues to fund an Energy Security Trust that will drive new research and technology to shift our cars and trucks off oil for good," Obama said.
  • Enacting such a trust would require an act of Congress.

WASHINGTON — President Obama outlined a proposal for an "Energy Security Trust" as a way to deal with "the painful spikes in gas prices" in his State of the Union address on Tuesday.

"I propose we use some of our oil and gas revenues to fund an Energy Security Trust that will drive new research and technology to shift our cars and trucks off oil for good," Obama said. "If a nonpartisan coalition of CEOs and retired generals and admirals can get behind this idea, then so can we. Let's take their advice and free our families and businesses from the painful spikes in gas prices we've put up with for far too long."

Enacting such a trust would require an act of Congress. The funds would come from federal oil and gas drilling. Such a setup would be designed to spark investment in electric vehicles, biofuels and natural-gas-powered cars. It appears to be a shift away from providing tax credits and loan guarantees to spur alternative-energy use.

Obama did not specifically mention his goal of putting 1 million electric cars on the road by 2015, as he did in his 2011 State of the Union Speech. But the proposal for the Energy Security Trust suggests that the White House is still supporting electric vehicles and biofuels.

Energy concerns were a big part of the 2013 State of the Union address.

"Today, no area holds more promise than our investments in American energy," Obama said. "After years of talking about it, we're finally poised to control our own energy future. We produce more oil at home than we have in 15 years. We have doubled the distance our cars will go on a gallon of gas, and the amount of renewable energy we generate from sources like wind and solar — with tens of thousands of good American jobs to show for it."

Obama's statement about doubling the distance our cars will go on a gallon of gas was disputed by Fact Check.org.

"He claimed that "we have doubled the distance our cars will go on a gallon of gas," it noted. "Actual mileage is improving, but Obama's "doubled" claim refers to a desired miles-per-gallon average for model year 2025."

Edmunds says: The idea of establishing a trust from federal oil and gas drilling revenues has been around for some time as a way to cut dependence on foreign oil. It's unclear whether this idea will ever see the light of day.

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