Bush address says US 'addicted to oil'

President George W. Bush prepares for his State of the Union speech at his Oval Office desk in the White House. Picture / Reuters

WASHINGTON - President Bush said "America is addicted to oil" and must develop technologies to address soaring gasoline prices in a State of the Union speech today that argues against a US retreat from Iraq and the war on terrorism.

In excerpts of the 9pm EST (3pm NZT) speech released by the White House, Bush argued the United States must remain aggressively engaged around the world, rejecting critics who feel Washington is provoking ill will and should pull back.

With oil prices close to record level, Bush highlighted the need to improve technologies in order to reduce US oil imports.

"America is addicted to oil, which is often imported from unstable parts of the world," Bush said. "The best way to break this addiction is through technology."

With three years left in office, Bush is hoping to lift his political fortunes and those of his Republican allies in an election year with control of Congress up for grabs. He is coming off one of the toughest stretches of his presidency, and his job approval ratings hover in the high 30s to low 40s in most polls.

On Iraq, Bush argued against those Democrats who have been calling for a timetable for a phased redeployment of US troops in Iraq, saying a "sudden withdrawal of our forces from Iraq would abandon our Iraqi allies to death and prison."

"However we feel about the decisions and debates of the past, our nation has only one option: We must keep our word, defeat our enemies, and stand behind the American military in its vital mission," he said.

On Iran, Bush said "the world must not permit" Tehran to develop a nuclear weapon. He said Iran is being "held hostage" by Islamic clerics and that the United States hopes one day to be friends with a free and democratic Iran.

Bush laid down what might ultimately be conditions for US relations with Hamas, the Islamic militant group that won a stunning victory in Palestinian elections last week.

"The Palestinian people have voted in elections, now the leaders of Hamas must recognize Israel, disarm, reject terrorism and work for lasting peace," Bush said.

In all, Bush said, "Isolationism would not only tie our hands in fighting enemies, it would keep us from helping our friends in desperate need." Due to election-year realities, there were no sweeping proposals along the lines of his big Social Security revamp, which fizzled after its high-profile roll-out a year ago.

The president's speech was delivered to a joint session of the US Congress, where Democrats have been criticising Bush on a range of issues that include the Iraq war, Hurricane Katrina relief and a domestic spying program.

On foreign policy, Bush argued the United States should shape events abroad rather than being shaped by them and that under his leadership there will be no pulling back. He warns against the temptation to take "the road of isolationism and protectionism," saying it ends in "danger and decline".

"In a time of testing, we cannot find security by abandoning our commitments and retreating within our borders. If we were to leave these vicious attackers alone, they would not leave us alone. They would simply move the battlefield to our own shores," he said.

The comments amount to a rejection of those Democrats and others who argue US policies in Iraq and in the war on terrorism are doing more harm than good abroad.

In the televised speech before millions, he called for a bipartisan commission to study the solvency of the Social Security retirement system, as well as the Medicare and Medicaid health insurance programmes.

Bush in recent days has been talking up the need for greater bipartisanship in Washington, where Democrats typically provide a solid wall of opposition.

Getting the parties to work together in an election year will be difficult but Bush's advisers believe it may be possible to make some legislative progress because congressional candidates seeking re-election will want to have some victories to talk about at home.

Bush is seeking to boost his standing after a year in which his popularity sank to an all-time low as the public became increasingly concerned about the Iraq war, angry about high petrol prices and disappointed by the slow federal response to the Hurricane Katrina disaster.

An NBC News/Wall Street Journal poll conducted January 26-29 of 1,011 adults showed Bush's approval rating at 39 per cent, unchanged from last month's poll.

Bush will follow the speech by going on the road to sell his agenda to the public. Later this week he will visit Tennessee and Minnesota -- states that have tight, contested Senate races -- followed by a stop in New Mexico, and then spend the weekend at his Crawford, Texas, ranch.

Bush's challenge is to outline a plan that Republicans who control Congress can use to try to avoid what has been the historical norm -- the party in power loses seats in midterm elections, election years in which a president is not chosen.

"It is very important that the president thematically shows where we're going in terms of the vision and an agenda," Senate Majority Leader Bill Frist said told CNN.

The Tennessee Republican predicted his party would maintain control -- and perhaps even increase its majority -- if he and his colleagues "follow and deliver meaningful solutions to the real challenges of the American people."

Bush also will focus on initiatives to address the soaring cost of health care by expanding the use of tax-preferred savings accounts and giving tax breaks to Americans without employer-provided health insurance.

The speech went through more than 30 drafts and ran 38 minutes in practice sessions without applause.

"I hope the president, in his State of the Union, will really try to do what he said he's going to do for five years: that is, be a uniter, not a divider," Senate Minority Leader Harry Reid, a Nevada Democrat, said on CNN.

"Everything that he's done is just the opposite of what he has said."

- REUTERS