U.S. needs foreign oil very much

Saying the United States cannot be put in a situation where it is "held hostage" by foreign oil, President George W. Bush outlined his plan to make the U.S. more energy independent. Less than half the crude oil used by refineries is produced in the United States , while 60 percent comes from foreign nations, Bush said during the first stop on a two-day trip to talk about energy.

Photo: U.S. needs foreign oil very much

Some of these foreign suppliers have "unstable" governments that have fundamental differences with America , he said. "It creates a national security issue and we're held hostage for energy by foreign nations that may not like us," Bush said Monday.

Bush is focusing on energy at a time when Americans are paying high power bills to heat their homes this winter and have only recently seen a decrease in gasoline prices. One of Bush's proposals would expand research into smaller, longer-lasting batteries for electric-gas hybrid cars, including plug-ins. He highlighted that initiative with a visit Monday to the battery center at Wisconsin-based auto-parts supplier Johnson Controls Inc.

During his trip, Bush is also focusing on a proposal to increase investment in development of clean electric power sources, and proposals to speed the development of biofuels such as "cellulosic" ethanol made from wood chips or sawgrass. Energy conservation groups and environmentalists say they are pleased that the president, a former oil man in Texas , is stressing alternative sources of energy, but they contend his proposals do not go far enough. They say the administration must consider greater fuel-efficiency standards for cars, and some economists believe it is best to increase the gas tax to force consumers to change their driving habits.

During his visit to Johnson Controls' new hybrid battery laboratory, Bush checked out two Ford Escapes, one with a nickel-metal-hybrid battery, the kind that powers most hybrid-electric vehicles, and one with a lithium-ion battery, which Johnson Controls believes are the wave of the future. The lithium-ion battery was about half the size of the older-model battery. In 2004, Johnson Controls received a government contract to develop the lithium-ion batteries.

On Tuesday, Bush plans to visit the Energy Department's National Renewable Energy Laboratory in Colorado to talk about speeding the development of biofuels. The lab, with a looming $28 million ( Ђ 23.47 million) budget shortfall, had announced it was cutting its staff by 32 people, including eight researchers. But in advance of Bush's visit, Energy Secretary Samuel Bodman over the weekend directed the transfer of $5 million ( Ђ 4.19 million) to the private contractor that runs the lab, so the jobs can be saved.

The department "has been informed that the NREL lab director will use these funds to immediately restore all of the jobs that were cut earlier this month due to budget shortfalls," the department said in a statement Monday. "Our nation is on the threshold of new energy technology that I think will startle the American people," Bush said. "We're on the edge of some amazing breakthroughs, breakthroughs all aimed at enhancing our national security and our economic security and the quality of life of the folks who live here in the United States", reports the AP.

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