SNAP ANALYSIS: Obama acts to cut U.S. greenhouse emissions

WASHINGTON (Reuters) - President Barack Obama's moves to reduce greenhouse emissions and raise fuel standards will slash U.S. oil demand over the long term while also sending a strong signal that America is serious about tackling global warming.

Obama issued directives on Monday requiring the Environmental Protection Agency to consider allowing states to cut greenhouse gas emissions spewed by vehicles and ordered the Transportation Department to boost fuel economy standards for cars and trucks for the 2011 model year.

"It will be the policy of my administration to reverse our dependence on foreign oil while building a new energy economy that will create millions of jobs," Obama said at the White House. "America will not be held hostage to dwindling resources, hostile regimes and a warming planet."

* Gasoline demand accounts for almost half of U.S. daily oil consumption, and higher vehicle fuel economy standards could reduce future U.S. reliance on foreign oil suppliers. "By raising fuel efficiency standards, our cars will burn less gas, Americans will save at the pump, and our country will be less dependent on oil," said Frances Beinecke, president of the Natural Resources Defense Council.

* The Bush administration's decision to forgo setting federal vehicle gasoline mileage requirements gives the Obama administration the opportunity to impose much higher fuel economy standards. "The Obama administration appears ready to nudge the car companies to re-tool and join the 21st century," said Frank O'Donnell, president of Clean Air Watch.

* Stronger fuel requirements could force U.S. automakers to roll out more car and trucks that run on alternative fuels, such as electricity, natural gas and hydrogen. "It will be a signal to Detroit that a huge market awaits them if they do the right thing and produce the cleanest, most efficient vehicles possible," said Sen. Barbara Boxer, a California Democrat who chairs the Senate environmental committee.

* U.S. automakers may have a hard time continuing to sue to block states from regulating greenhouse gas emissions while at the same time getting government loans to restructure. "It is deplorable that these companies are taking taxpayer funds and then turning around to sue in an effort to keep making higher-polluting cars," O'Donnell said.

* Obama's move sends a signal to the world that the United States, the second largest greenhouse gas polluter after China, is serious about slowing emissions of the gases blamed for warming the planet. Rich and poor countries are trying to move past gridlock to agree a successor agreement to the Kyoto Treaty on global warming by the end of the year in Copenhagen.

* Allowing states to cut greenhouse gas emissions could put pressure on Congress to more quickly pass legislation that implements a nationwide cap-and-trade system for emission permits to fight climate change. "Just days into office, President Obama is showing America and the world that he will lead our country in a bold new direction to protect the environment and fight global warming," said Beinecke.

(Additional reporting by Tim Gardner in New York; Editing by Russell Blinch and David Wiessler)