Obama: 'The age of oil must end'

Posted by John McCormick at 2:15 pm CDT

DETROIT - Speaking in the heart of America's automotive industry, Sen. Barack Obama today called for tougher fuel-economy standards and more tax breaks for hybrid cars as part of a detailed energy proposal he unveiled before about 2,000 people.

The Illinois senator said his proposals would eventually cut the nation's oil consumption by 2.5 million barrels a day and take the equivalent of 50 million cars worth of pollution out of the air. He would achieve those goals in part by targeting a 4 percent annual increase – approximately one mile per gallon -- in fuel standards.

The Democratic presidential candidate said the nation's "oil addiction" is a threat to national security because it is helping fund terrorism.

"For the sake of our security, our economy, our jobs and our planet, the age of oil must end in our time," Obama told a sold-out Detroit Economic Club luncheon that included some of the Motor City's top business and political leaders.

It was the latest in a series of policy speeches Obama has given in an effort to defuse concerns that he lacks enough national policy experience to be president. The trip, including a planned fundraiser Monday evening, was his first visit to Michigan since he announced his presidential ambitions in February.

During his 30-minute speech, Obama acknowledged the political challenges of increasing fuel-economy standards, something that has been successfully fended off by Detroit. But he said the Motor City should use the growing energy crisis to rebuild itself as a place of energy innovation.

"For years, while foreign competitors were investing in more fuel-efficient technology for their vehicles, American automakers were spending much of their time investing in bigger, faster cars," Obama said. "Whenever an attempt was made to raise our fuel efficiency standards, the auto companies would lobby against it, spending millions to prevent the very reform that could've saved their industry."

Obama said America has been left behind because it has lacked the political will to require greater fuel efficiency.

"While our fuel standards haven't moved from 27.5 miles per gallon in two decades, both China and Japan have surpassed us, with Japanese cars now getting an average of 45 miles to the gallon," he said.

Congress has for years debated whether to mandate higher standards. Under a 1975 law passed after the Arab oil embargo, each automaker's car fleet was required to average 27.5 miles per gallon and its light trucks 22.2 miles per gallon. The car standard has been untouched for 18 years, while the truck standard will increase to 24 miles per gallon by 2011.

Cars and light trucks -- including SUVs, pickups and vans -- account for about one-fifth of U.S. carbon dioxide production and experts believe global warming could be reduced through better fuel efficiency.

Obama also promised help for automakers struggling against international competition and growing health care costs. His plan would encourage automakers to make fuel-efficient, hybrid vehicles by helping the companies shoulder the health care costs of their retirees.

Domestic automakers would get health care assistance in exchange for investing 50 percent of the savings into technology to produce more fuel-efficient vehicles. In addition, Obama said he would provide automakers with generous tax incentives for retooling assembly plants.

Obama confessed his own recent increase in gasoline usage. The Tribune first reported Sunday afternoon that his new Secret Service detail meant that he traveled in Iowa in a Chevy Suburban, rather than a lighter, sport utility vehicle that burned 85 percent ethanol and 15 percent gasoline.

"Government should lead the way here. I showed up at this event, I must confess, in a government vehicle that does not have a flexible-fuel tank," he said. "When I'm President, I will make sure that every vehicle purchased by the federal government does have a flexible fuel tank."

Beyond cars and trucks, Obama also called for greater use of renewable energy. "There is absolutely no reason we shouldn't be able to get at least 20 percent of our energy from clean and renewable sources by 2020," he said.

Following his speech, Obama was to meet privately with Detroit Mayor Kwame Kilpatrick and other local officials and union leaders.

mccormickj@tribune.com