US President Barack Obama has called for annual subsidies to oil and gas companies to be re-directed to researching clean sources of energy.
In a speech on vehicle fuel efficiency, the President stated that the US had to take action to reduce its own dependence on hydrocarbons, particularly in the light of increasing demand from India and China.
During the speech, Obama stated that: "While we're at it, we need to get rid of, I think, the $4 billion in subsidies we provide the oil and gas companies every year at a time when they're earning near-record profits and put that money toward clean energy research, which would really make a big difference."
President Obama also said that there was no 'silver bullet' in becoming more energy efficient, but that there was a need to increase "safe and responsible oil production" in the US to meet the country's needs. In claiming that "we're going to need to produce all the oil we can", he suggested that "even those who are proponents of shifting away from fossil fuels have to acknowledge that we're not going to suddenly replace oil throughout the economy."
On a more positive note, he praised the automotive and related industries (presumably including oil producers) for helping to reduce fuel consumption, claiming that by 2025 average vehicle fuel economy will have almost doubled, saving consumers some $2 trillion.