Obama defends energy policies, pushes oil pipeline

Obama defends energy policies, pushes oil pipeline

OKLAHOMA CITY (AP) - Deep in Republican oil country, President Barack Obama is fending off criticism of his energy policies, pointing to plans to fast-track an oil pipeline that emerged after he delayed the larger Keystone XL project earlier this year.

Obama was directing federal agencies Thursday to expedite a 485-mile (780-kilometer) line from Oklahoma to refineries on Texas' Gulf Coast that would remove a critical bottleneck in the country's oil transportation system. The directive would also apply to other pipelines that alleviate choke points.

"We're drilling all over the place," Obama said in Maljamar, New Mexico, on Wednesday, standing alongside oil rigs on federal land. The president was announcing his plans for the expedited pipeline, a southern portion of the original Keystone XL, in Cushing, Oklahoma, where construction is expected to begin this spring.

In oil fields and amid acres of solar panels, Obama is trying to rebut charges that he has stifled domestic energy production and been too eager to spend government money on renewable energy projects as gas prices have climbed to $3.86 a gallon (3.7 liters). His emphasis on oil drilling is aimed at countering criticism of his rejection of the 1,700-mile (2,735-kilometer) Keystone XL pipeline, which would carry tar sands oil from western Canada to refineries along the Texas Gulf Coast.

For Obama's advisers, rising gas prices pose a threat to his re-election bid because they could undermine the benefits of a payroll tax cut that he made the centerpiece of his jobs agenda last fall - Congress approved the tax cut extension in February - and throttle the economic recovery.

Republicans view rising gas prices as emblematic of Obama's energy record and hope to tag him with the blame even though no president has much control over prices at the pump. Gas prices have risen more than 50 cents a gallon since January in response to a standoff over Iran's nuclear program that has threatened to disrupt Middle East oil supplies.

Obama's energy tour was also aimed at defending his administration's support of renewable energy projects, an agenda tarnished by his administration's decision to pump millions into California solar company Solyndra before it collapsed.

In an interview with American Public Media's "Marketplace" on Wednesday, Obama noted that the funding came from a loan guarantee program approved by Congress to help renewable energy companies, some of which would not succeed.

"Do I wish that Solyndra had gone bankrupt? Absolutely not. And obviously it's heartbreaking what happened to the workers who were there," Obama said. "When you look at the overall portfolio, it is right for us to make sure that we're not just cashing in our chips and letting the Chinese or the Germans develop the technologies that we know are going to be critical in the future? I'm proud to say that we're going to continue to support it."