The government has approved 39 new shallow-water permits, seven deepwater permits and more than two offshore drilling permits to drill.

Obama stressed that the U.S. consume about 25 percent of the world's oil. However, it only has 2 percent of the reserves.

Even if the country doubled its oil production, it still cannot meet the long-term energy challenge.

Obama noted that the U.S. will continue to develop nuclear energy, which accounts for about 20 percent of the country's electricity. He said that although the nuclear disaster happened in Japan in recent days, it should not stop the U.S. to use this clean energy. He requested a comprehensive safety review by the Nuclear Regulatory Commission to make sure that all of the country' s existing nuclear energy facilities are safe.

He also noted that other substitute for oil that holds tremendous promise is renewable biofuels -- not just ethanol, but biofuels made from things like switchgrass, wood chips, and biomass.

On the demand side, Obama pledged to increase energy efficiency and push the use of cleaner energy to direct energy consumption.

"We're going to continue to work with the automakers, with the autoworkers, with states, to ensure the high-quality, fuel- efficient cars and trucks of tomorrow are built right here in the United States of America," Obama said. "That's going to be a top priority for us."

He calls for administrative action directing agencies to ensure that by 2015, all new vehicles they purchase will be alternative- fuel vehicles, including hybrid and electric vehicles.

Obama also cited international competition as a factor for his energy security strategy.

"The countries that lead the 21st century clean energy economy will be the countries that lead the 21st century global economy," Obama said. "I want America to be that nation. I want America to win the future."

But Obama's energy plan is criticized by Republicans.

Mitch McConnell, the top Senate Republican, said Obama's policies did not match his rhetoric and said restrictions on offshore oil drilling in the Gulf following a massive oil spill disaster last year had led to higher prices.

"As we've frequently seen with this administration, what it says and what it does are often two very different things," he said accusing America of conducting a "war on American energy."