Oil and Gas News

Bush warns: Cheap petrol could 'make us complacent'

Oct 13, 2006, 3:24 GMT

Washington - The falling price of oil has boosted US consumer confidence, sparked a Wall Street rally and and rescued US President George W Bush's approval ratings.

But with US petrol prices down about 30 per cent since mid-summer peaks, Bush himself expressed concern Thursday that the falling fuel costs could dull the market forces that contributed to a surge of interest in conservation and alternative energy sources.

Speaking to a meeting on renewable energy in St Louis, Missouri, Bush hailed the savings at the gasoline pump for truck drivers, small businesses and average consumers.

'My worry is, however, that a low price of gasoline will make us complacent about our future when it comes to energy,' he said. 'Because I fully understand that energy is going to help determine whether or not this nation remains the economic leader in the world.'

Bush warned that dependence on imported oil is both an economic issue and a national security risk, and now-cheaper petrol 'may mask that concern.'

He pointed out that his government has spent 10 billion dollars on alternative energy research since 2001.

'We're doing fine now. We got a really strong economy. And in order to make sure it's strong tomorrow, we need to make sure we work on how we use energy. ... Look, let me just put it bluntly: We're too dependent on oil,' Bush said to applause from a meeting predominated by advocates of ethanol fuel produced from corn.