Nuclear Power
"It has important potential for increasing our electricity without adding carbon dioxide to the atmosphere," he said. "But I'm determined to ensure that it's safe."
The U.S. also must exploit its reserves of natural gas in shale, he said.
Obama directed Energy Secretary Steven Chu to oversee work by the federal government, industry, environmental groups and states to develop recommendations on the use of fracking chemicals for shale extraction.
"We have to make sure we're doing it safely, without polluting our water supply," Obama said.
In hydraulic fracturing, or fracking, millions of gallons of chemically treated water are forced underground to break up rock and allow gas trapped in shale formations to flow. Shale gas in states such as Wyoming, Texas, Louisiana and Pennsylvania, once thought too expensive to tap, is now being drilled by hydraulic fracking.
Shale Gas Reserves
In December, the Energy Department more than doubled its estimate of U.S. shale gas reserves to 827 trillion cubic feet. Shale gas, 14% of U.S. supply in 2009, is expected to account for 45% in 2035. The U.S. has enough natural gas to heat homes, run power stations and supply manufacturers for 110 years.
Environmental groups say fracking has contaminated groundwater and should be regulated by the Environmental Protection Agency. Obama said he wants more information on the chemicals used in fracking and will seek recommendations from experts on best practices to protect public health and the environment.
As part of the broader plan to cut energy use, Obama is directing all government agencies by 2015 to purchase only vehicles that use alternative fuel or run by hybrid or electric power.