Now, the second major challenge I want to discuss with you this morning is energy. The energy crisis is the greatest domestic challenge that our country will face in our lifetime. I still find it almost incredible that our country has no coherent plan for dealing with it until this year. We have now proposed such a plan to the Congress and also proposed a new department to deal with the energy question. This plan is based on three inescapable realities. There's no way to get around them. The first is that we are simply running out of oil. The second is that oil will, nevertheless, have to remain our primary source of energy for many years and must not be wasted. And the third principle is that unless we begin soon to prepare for the transition to other sources of energy, the consequences on our society and our way of life will be very severe. We could face massive unemployment, crippling inflation, social and political instability, and threats to our freedom of action in international affairs. We cannot just rely on increased production. While finding more oil is important, we would have to discover a new- Alaskan oil field every year just to keep pace with the annual growth in world consumption. No matter how strong the financial incentives, that is simply not going to happen. We must save oil and gas for uses where there is no good substitute. One obvious example is moving vehicles. We must shift to other sources when possible, and we must develop new sources, such as solar energy. There are no workers in America whose future jobs depend more than yours on a good energy program based on strict conservation. Now, you know and I know that meeting our energy goals is not going to be easy. It will require sacrifice from everyone in the country. We cannot use the fuel crisis as an excuse for not cleaning up our air. I have proposed tough but fair air pollution standards. We've got to improve the efficiency of our cars, and that's why I proposed a gas-guzzler tax. Now you and I have honest differences of opinion over some aspects of my proposals. But I don't hesitate to call on you for help, because I know what you've done in the past. You've never lost sight of the broader interests of our Nation. Walter Reuther helped to make possible the Clean Air Act as it was originally passed. And your members are already building cars highly efficient, getting more than 30 miles per gallon. It's absolutely inevitable, no matter who's the President of the United States, that we will have to shift to more efficient automobiles with a clean exhaust. This past quarter, unfortunately, a larger percentage of Americans bought foreign-made cars than ever before. Now, I know that you agree that the solution is not to erect trade barriers to keep out foreign competition because it only leads to trade wars, to retaliation, and added inflation. The solution lies in using our great American ingenuity to design and produce the right cars for the future. I can think of no more disastrous assumption for the American automobile industry to make than that we cannot successfully compete with foreign companies that produce and sell such cars. We can compete, and we will compete successfully.

We simply must balance our demand for energy with our rapidly shrinking resources. By acting now we can control our future instead of letting the future control us.

Now is the time for change. We cannot drill our way out of the energy crisis. The era of fossil fuels is over. We must invest in renewable energy. And we must not delay.

Two days from now, I will present to the Congress my energy proposals.. Its Members will be my partners, and they have already given me a great deal of valuable advice. Many of these proposals will be unpopular. Some will cause you to put up with inconveniences and to make sacrifices. The most important thing about these proposals is that the alternative may be a national catastrophe. Further delay can affect our strength and our power as a nation. Our decision about energy will test the character of the American people and the ability of the President and the Congress to govern this Nation. This difficult effort will be the "moral equivalent of war," except that we will be uniting our efforts to build and not to destroy. Now, I know that some of you may doubt that we face real energy shortages. The 1973 gas lines are gone, and with this springtime weather, our homes are warm again. But our energy problem is worse tonight than it was in 1973 or a few weeks ago in the dead of winter. It's worse because more waste has occurred and more time has passed by without our planning for the future. And it will get worse every day until we act. The oil and natural gas that we rely on for 75 percent of our energy are simply running out. In spite of increased effort, domestic production has been dropping steadily at about 6 percent a year. Imports have doubled in the last 5 years. Our Nation's economic and political independence is becoming increasingly vulnerable. Unless profound changes are made to lower oil consumption, we now believe that early in the 1980's the world will be demanding more oil than it can produce. The world now uses about 60 million barrels of oil a day, and demand increases each year about 5 percent. This means that just to stay even we need the production of a new Texas every year, an Alaskan North Slope every 9 months, or a new Saudi Arabia every 3 years. Obviously, this cannot continue.

Renewable energy has its limitations and the government cannot put all its eggs in the same basket. We must develop different sources of energy, otherwise an energy crisis could result in a serious national security issue.

So the question, I think, is a fair one for us to ask, to discuss here. It is an important question. What happens if we just decide we are going to turn our backs on this, our American energy? What happens if we really do move in this direction of just keeping it in the ground? What happens if we really do close our eyes to our domestic energy sources, these assets, if we close our eyes to the contributions that they provide? I will suggest to you that there are a few warning signs that we have up on the horizon. Oil prices are back up above $60 a barrel. This actually helps my State; I will be honest there. We will accept that for budgetary purposes. But we all talk about what happens typically around Memorial Day. We have driving season coming on. We are still in the midst of a pandemic. But if the United States artificially restricts its supplies and demand rebounds rapidly, where does this put us?

Our immediate task, however, is the critical work of confronting the economic crisis. As I've said, we've passed through an era of profound irresponsibility; now we cannot afford half-measures, and we cannot go back to the kind of risk-taking that leads to bubbles that inevitably bust. So we have a choice. We can shape our future, or let events shape it for us. And if we want to succeed, we can't fall back on the stale debates and old divides that won't move us forward.

There is no more consequential challenge that we must meet in the next decade than the onrushing climate crisis. Left unchecked, it is literally an existential threat to the health of our planet and to our very survival... We are an economy in crisis but with an incredible opportunity: To not just rebuild back to where we were before, but better, stronger, more resilient and more prepared to the challenges that lie ahead... These aren’t pie-in-the-sky dreams. These are actionable policies that we can get to work on right away... Nothing’s a hoax. Nothing’s a hoax about that. It’s a very serious subject. I want clean air. I want clean water. I want the cleanest air, want the cleanest water. The environment is very important to me.

Given the time frame, the climate crisis-vast, existential, worsening by the day-is solvable only through an economy-wide energy transition, which requires an economic mobilization. Only a national coordinated all-out push can ramp up production of clean energy infrastructure fast enough-and ramp down emissions fast enough.

Asked at a press conference last September about the consequences of the worsening energy crisis in Western Europe, Blinken described the moment as a potentially good one: “It’s a tremendous opportunity to once and for all remove the dependence on Russian energy and thus to take away from Vladimir Putin the weaponization of energy as a means of advancing his imperial designs. That’s very significant and that offers tremendous strategic opportunity for the years to come, but meanwhile we’re determined to do everything we possibly can to make sure the consequences of all of this are not borne by citizens in our countries or, for that matter, around the world.”

We know the strength of America. We are strong. We can regain our unity. We can regain our confidence. We are the heirs of generations who survived threats much more powerful and awesome than those that challenge us now. Our fathers and mothers were strong men and women who shaped a new society during the Great Depression, who fought world wars, and who carved out a new charter of peace for the world. We ourselves are the same Americans who just 10 years ago put a man on the Moon. We are the generation that dedicated our society to the pursuit of human rights and equality. And we are the generation that will win the war on the energy problem and in that process rebuild the unity and confidence of America. We are at a turning point in our history. There are two paths to choose. One is a path I've warned about tonight, the path that leads to fragmentation and self- interest. Down that road lies a mistaken idea of freedom, the right to grasp for ourselves some advantage over others. That path would be one of constant conflict between narrow interests ending in chaos and immobility. It is a certain route to failure. All the traditions of our past, all the lessons of our heritage, all the promises of our future point to another path, the path of common purpose and the restoration of American values. That path leads to true freedom for our Nation and ourselves. We can take the first steps down that path as we begin to solve our energy problem. Energy will be the immediate test of our ability to unite this Nation, and it can also be the standard around which we rally. On the battlefield of energy we can win for our Nation a new confidence, and we can seize control again of our common destiny.

A nation that can't control its energy sources can't control its future.

If we do not act, then by 1985 we will be using 33 percent more energy than we use today. We can't substantially increase our domestic production, so we would need to import twice as much oil as we do now. Supplies will be uncertain. The cost will keep going up. Six years ago, we paid $3.7 billion for imported oil. Last year we spent $36 billion for imported oil--nearly 10 times as much. And this year we may spend $45 billion. Unless we act, we will spend more than $550 billion for imported oil by 1985--more than $2,500 for every man, woman, and child in America. Along with that money that we transport overseas, we will continue losing American jobs and become increasingly vulnerable to supply interruptions. Now we have a choice. But if we wait, we will constantly live in fear of embargoes. We could endanger our freedom as a sovereign nation to act in foreign affairs. Within 10 years, we would not be able to import enough oil from any country, at any acceptable price. If we wait and do not act, then our factories will not be able to keep our people on the job with reduced supplies of fuel. Too few of our utility companies will have switched to coal, which is our most abundant energy source. We will not be ready to keep our transportation system running with smaller and more efficient cars and a better network of buses, trains, and public transportation. We will feel mounting pressure to plunder the environment. We will have to have a crash program to build more nuclear plants, strip mine and bum more coal, and drill more offshore wells than if we begin to conserve right now. Inflation will soar; production will go down; people will lose their jobs. Intense competition for oil will build up among nations and also among the different regions within our own country. This has already started. If we fail to act soon, we will face an economic, social, and political crisis that will threaten our free institutions. But we still have another choice. We can begin to prepare right now. We can decide to act while there is still time. That is the concept of the energy policy that we will present on Wednesday.

We must proceed with our own energy development. Exploitation of domestic petroleum and natural gas potentialities, along with nuclear, solar, geothermal, and non-fossil fuels is vital. We will never again permit any foreign nation to have Uncle Sam over a barrel of oil.