(Bloomberg News) President Barack Obama said there are no "quick fixes" for higher energy costs and the U.S. must embark on a long-term plan to tap domestic resources, cut usage and develop alternatives to fossil fuels.

The turmoil in the Middle East and North Africa that has driven up oil prices, the earthquake in Japan that triggered a nuclear emergency and increasing competition for resources from the rapidly growing economies of China and India demonstrate the challenges faced by the U.S., Obama said in a speech today.

He called for new incentives to boost production of oil, gas and biofuels, tougher fuel efficiency standards for vehicles and greater reliance on cleaner sources of energy, including nuclear power. The goal, Obama said, is to cut oil imports by a third in a decade.

"We cannot keep going from shock when gas prices are up to trance when they go back down," Obama said at Georgetown University in Washington. "The United States of America cannot afford to bet our long-term prosperity and our long-term security on a resource that will eventually run out."

Obama's energy policies have come under fire from congressional Republicans as the cost of gasoline rises. Prices are up more than 20% this year and are 33% higher than a year ago. The national average price of regular gasoline at the pump was $3.587 a gallon yesterday, AAA said on its website. That's the highest since Oct. 2, 2008.

'Reasonable' Goal

"We have been down this road before," Obama said. Cutting by one-third the 11 million barrels of oil imported by the U.S. in 2008 is a goal that is "reasonable, achievable and necessary."

Obama's address follows release of a report yesterday by the U.S. Interior Department that said the Gulf of Mexico alone may have as much as 11.6 billion barrels of untapped crude -- enough to meet U.S. demand for almost two years -- and 59.2 trillion cubic feet of natural gas. Fewer than half the leases on federal land are active, it said.

The specific incentives for drilling are still being developed by the Interior Department, according to a White House fact sheet. Some, including shortening lease terms and requiring drilling to begin before an extension is granted, are already being employed for offshore leases. The department is evaluating using a graduated royalty structure to encourage more rapid production as is done in Texas, the fact sheet says.

Offshore Production

Obama said he is encouraging offshore oil exploration and production "as long as it's safe and responsible."

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