Obama Urges Opening Up Oil Reserves

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Obama: Tap Oil Reserve to Help Gas Prices

In a reversal, Barack Obama proposed Monday that the government sell 70 million barrels of oil from its strategic petroleum stockpiles.

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"We have to drill here and drill now. Not wait and see if there's areas to explore, not wait and see if there's a package to put together," he said. "But drill here and drill now."

McCain has aired ads attacking Obama's positions on drilling. On Monday, Obama responded with an ad blasting his GOP rival for accepting millions in contributions from oil company executives and for advocating a corporate tax cut that would reduce taxes on oil companies.

In his speech, Obama pledged to eliminate the need for oil from the Middle East and Venezuela within 10 years by growing alternative sources of energy and through conservation.

His long-term energy plan includes creating a million 150-mile-per gallon plug-in hybrid vehicles within six years; requiring that 10 percent of U.S. energy come from renewable resources by the end of his first term; and reducing U.S. demand for electricity by 15 percent by 2030.

Obama said he would give a $7,000 tax credit to those who buy plug-in hybrid cars. They won't be mass-produced until 2010, but aides said the candidate wants to encourage carmakers to move toward producing more energy-efficient vehicles.

"I want the fuel-efficient cars of tomorrow to be built -- not in Japan, not in China, but here in the United States of America, here in Michigan," Obama said to loud applause.

McCain has said he would invest $2 billion in clean coal technology and has offered a $300 million prize to whoever invents the next-generation electric motor for cars. He would give a $5,000 tax credit to those who buy cars that produce less pollution.

Obama's shifts on offshore drilling and using the petroleum reserve come as polls show that large majorities back increased drilling to reduce gas prices.

The issue is complicated for the Democrat, as many environmental groups are eager to see Americans drive less and are sharply opposed to increased drilling. Friends of the Earth, an environmental group that endorsed Obama in May, said in a statement that "it's so disappointing to see Obama now say he would consider expanding offshore drilling, even though he knows it is not a real solution to the energy crisis."

Obama has also suggested Americans could save money on gas by fully inflating their tires -- something that police departments and other government agencies across the country have done to conserve fuel.

The McCain campaign has ridiculed Obama, saying it is a tiny solution to the gas problem. On his plane Monday, McCain's staff handed reporters tire gauges with the words "OBAMA ENERGY PLAN" stamped on them.

Shear was traveling with McCain. Staff writer Juliet Eilperin contributed to this report from Montana.