WASHINGTON -- In his 2013 State of the Union address on Tuesday night, President Barack Obama proposed that "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. 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."
He offered no details, but the coalition he referred to is Securing America's Future Energy (SAFE). Robbie Diamond, the group's president and CEO, said that he "welcomed" President Obama's proposal in the State of the Union address to establish a federal Energy Security Trust. In its "National Strategy for Energy Security," SAFE's Energy Security Leadership Council (ESLC), co-chaired by FedEx Chairman, president, and CEO Frederick W. Smith and former Marine Corps Commandant General P.X. Kelley (USMC, Ret.) recommended using a portion of revenue generated from increased oil production to establish a trust fund dedicated to reducing America's oil dependence.
Enacting the President's trust proposal, however, would require an act of Congress, according to a report by The Hill. Currently, royalties from oil and gas drilling on onshore and offshore lands are shared among the federal Treasury and the states.
The idea of establishing such a trust from those revenues has existed for quite some time as a way to lessen dependence on foreign oil, said the report.
Obama said the funds would do just that by sparking investment in electric vehicles, biofuels and natural gas-powered cars.
Other selected comments on energy and transportation from the President's speech: