During Obama’s State of the Union address two weeks ago, he noted that there are large amounts of new revenue being raised by leasing rights for expanded oil and natural gas production on public lands. The President envisions using some of that fund to a new Energy Security Trust.
Obama wants to divert some of the revenues the federal government receives for oil and gas drilling to help find ways to shift to cleaner energy sources like battery power and hydrogen fuel cells.
This proposal is one of several energy-related ideas that were mentioned in the annual address to Congress and the American people. This expands upon the Administration’s earlier effort to help sponsor the development of cleaner and largely renewable energy alternatives.
A few auto manufactures have received funding, including Ford and Nissan, but a number of other companies that expected support had their loans frozen or blocked at the last minute. That includes plug-in hybrid start-up Fisker Automotive, which has been struggling to raise cash to launch its second product line, the Atlantic, after having $329 million in low-interest government-backed loans pulled.
The United States has seen a large spike in oil drilling and production over the last few years and could end 2013 as the world’s largest producer of petroleum. It has also experienced an expansion of natural gas drilling, through a technology called fracking.
Proponents of the plan counter that is critical the U.S. gets behind the development of alternative power, and they point out that key allies and rivals alike are already taking steps. China is using millions of dollars to use towards the development of alternative propulsion systems in a bid to clear up its air pollution problems. Germany has authorized the creation of a massive national infrastructure of alternative energy service stations where motorists will eventually be able to tank up on hydrogen for fuel cell vehicles or get quick charges for their eclectic vehicles.
President Obama thinks a national trust program, could eventually help America shift our cars and trucks off oil for good.