Obama Calls for Incentives to Spur U.S. Oil, Gas Production

President Barack Obama said there are no “quick fixes” for higher energy costs and the U.S. must embark on a long-term plan to tap domestic resources, cut usage and develop alternatives to fossil fuels.

The turmoil in the Middle East and North Africa that has driven up oil prices, the earthquake in Japan that triggered a nuclear emergency and increasing competition for resources from the rapidly growing economies of China and India demonstrate the challenges faced by the U.S., Obama said in a speech today.

He called for new incentives to boost production of oil, gas and biofuels, tougher fuel efficiency standards for vehicles and greater reliance on cleaner sources of energy, including nuclear power. The goal, Obama said, is to cut oil imports by a third in a decade.

“We cannot keep going from shock when gas prices are up to trance when they go back down,” Obama said at Georgetown University in Washington. “The United States of America cannot afford to bet our long-term prosperity and our long-term security on a resource that will eventually run out.”

Obama’s energy policies have come under fire from congressional Republicans as the cost of gasoline rises. Prices are up more than 20 percent this year and are 33 percent higher than a year ago. The national average price of regular gasoline at the pump was $3.587 a gallon yesterday, AAA said on its website. That’s the highest since Oct. 2, 2008.