BBC News Online: Business

Hostile reaction to Bush energy plan

But the head of United Nations Forum on Climate Change, Jan Pronk, called the plan a "disastrous development" because it would fail to cut emission of greenhouse gases.

Mr Bush's plan would encourage more oil exploration and greater use of coal and nuclear energy, while offering incentives for conservation and renewable energy sources.

With American households facing high petrol prices and California braced for rolling blackouts this summer, Mr Bush has made overhauling the nation's energy policies a priority.

Click here for a graph comparing international energy consumption

"No matter how well we conserve, we're still going to need more energy," he said. "If we fail to act, Americans will face more and more widespread blackouts."

His plan will boost domestic energy production and reduce reliance on imports.

"I can't think of anything better for national security than to replace barrels of oil that come into the country from nations that can't stand America - some of them don't - with products that we grow here in America," Bush told a cheering crowd, as he unveiled his plan in Iowa.

Domestic criticism

Several prominent Democrats were quick to attack the plan, indicating that the plan faces a tough battle in Congress.

House Democratic leader Richard Gephardt said: "We think the president's plan makes the wrong choices for America and for the American people."

And Democratic Senator Harry Reid complained that the GOP - the Republican Party's nickname - now stood for "Gas, Oil and Plutonium."

California Governor Gray Davis saw no relief for the energy crisis his state is facing, and accused the president of "turning a blind eye to the bleeding and haemorrhaging that is taking place in this state.

"We are literally in a war with energy companies who are price-gouging us. Many of those companies are in Texas," Mr Davis said.

"With all due respect, Mr President, Californians want to know whether you're going to be on their side."

Specific measures

The White House has earlier warned that the US faced the most serious energy shortage since the oil embargoes of the 1970s, with a fundamental imbalance between supply and demand.

Mr Bush said the US could become more and more reliant on foreign crude oil, "putting our national energy security in the hand of foreign nations, some of whom do not share our interests".

The plans include increased oil exploration in an Arctic wildlife reserve, and an easing of regulations on oil refining, coal extraction and the building of new nuclear power plants.

The new energy policy includes plans to license 1,300 new power stations over the next 20 years, and to streamline the licensing of new nuclear plants to speed their development.

New electricity transmission lines will be build across the country, as well as more pipelines to carry oil and natural gas.

Tax breaks totalling $10bn for fuel-efficient cars and energy efficient homes are also planned, in what is being seen as a change in attitude towards conservation measures.

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