For national security conservatives, last week's State of the Union address was something of a wasteland. On the most pressing challenges facing the nation -- Iranian and North Korean nukes, Syria's meltdown, the war in Afghanistan, Al Qaeda's metastasization, the looming disaster of defense sequestration -- we were treated to a heaping portion of presidential mush, platitudes, and happy talk largely detached from the urgency of the historical moment. The overall effect will surely reinforce a dangerous perception that has increasingly taken root among friend and foe alike: America is waning. The world may be unraveling, but as far as President Obama is concerned, it's really not our problem. U.S. leadership is closed for the season. We're busy nation building at home. 

Dismal as it was, there was a section of the president's address that may hold unexpected promise. Though wrapped in a bright green bow of climate change, Obama's discussion of energy could have important national security consequences. Of particular note was his embrace of an energy security trust fund. The proposal is the brainchild of an organization called Securing America's Future Energy (SAFE) and its Energy Security Leadership Council (ESLC) -- the "nonpartisan coalition of CEOs and retired generals and admirals" that the president highlighted in his speech. 

In a report issued last December, SAFE and the ESLC called for the establishment of an energy security trust that would be funded by royalties derived from expanded drilling for oil and gas on federal lands. The trust would have one purpose only: supporting R&D on technologies designed to break oil's stranglehold over America's transportation sector, which accounts for about 70 percent of overall U.S. consumption.

Importantly, the underlying motive behind the SAFE/ESLC proposal had nothing to do with climate change and everything to do with national security and the country's economic health. Its authors properly see America's dependence on oil as a major strategic vulnerability. Even taking into account today's revolution in North American energy production, the United States for the foreseeable future will remain mired in a global petroleum market characterized by high and volatile prices, domination by an oftentimes hostile cartel, and the constant threat of disruption by geopolitical events in the world's most unstable regions. While convinced that America's current oil and gas boom must be fully exploited for the huge economic benefits it promises, SAFE and the ESLC also believe it must be leveraged for the long-term objective of breaking our dependence on oil once and for all -- thereby achieving true energy security and a measure of strategic flexibility that U.S. foreign policy has not known for decades. 

National security conservatives should be sympathetic to the effort. As I've recounted elsewhere, while the idea of targeting Iranian oil sales as a means of pressuring its nuclear program has been around since at least 2007, the trigger on such sanctions wasn't pulled until 2012. For almost five years, both the Bush and Obama administrations were deterred from taking aggressive action due to fears that removing large quantities of Iranian crude from the market might produce a devastating price shock that would inflict major harm on the global economy. 

That's five crucial years that were largely frittered away while Iran was allowed to earn hundreds of billions of dollars in revenue, dramatically enhance its enrichment capacity, and accumulate a stockpile of enriched uranium that with further processing could be used to build a handful of nuclear bombs. Five crucial years during which the pursuit of America's most pressing national security priority -- stopping Iran from acquiring nuclear weapons -- was dangerously constrained by our vulnerability to global oil markets. If that's not an intolerable situation for the world's leading nation to be in, I'm not sure what is. If there's a realistic strategy for doing something to mitigate it, we damn well should get started. 

Equally worth noting, however, is the fact that when oil sanctions were finally imposed on Iran last year -- cutting Iranian exports by up to a million barrels per day -- a major disruption to global markets was successfully avoided in no small measure because of corresponding increases in oil production from the United States. As the race to stop Iran's nuclear program intensifies in coming months and further steps to curtail Iranian exports are contemplated -- perhaps removing as much as another 1.5 million barrels per day from the world market -- continued growth in U.S. production will only become more vital.

Now that President Obama has sought to co-opt the ESLC's CEOs, generals, and admirals for his purposes, it's vital to keep in mind the details of what exactly their energy security trust entails. Perhaps most importantly, the ESLC proposed that money for the Trust should come from new drilling in currently inaccessible federal lands and waters -- specifically to include the Pacific, Atlantic and eastern Gulf of Mexico areas of the Outer Continental Shelf (OCS), as well as the Arctic National Wildlife Refuge (ANWR). Moreover, the funds should be drawn from royalties that oil companies already pay as a matter of standard operating procedure when granted drilling rights in areas owned by the federal government. More pointedly, the trust as envisioned by SAFE and ESLC, explicitly ruled out the leveling of any new fees or taxes -- carbon or otherwise -- on oil and gas production. Finally, it's important to note that the money that would be diverted to the trust represents but a small fraction -- much less than 10 percent -- of the total new royalties that would fill federal coffers by opening the designated areas to drilling. 

Perhaps not surprisingly, this isn't quite the Obama administration's vision for the Trust -- at least not yet. Most importantly, the administration is proposing that the money should be raised from royalties on existing production rather than from new production in the OCS and ANWR. 

While Republicans should see the trust as an idea worth exploring and engage with Obama accordingly, they should hold fast to the ESLC's actual recommendation that explicitly links the trust to the opening of federal areas that were previously off limits. If the president wants to cloak himself in a proposal that "a nonpartisan coalition of CEOs and retired generals and admirals can get behind," Republicans should insist that he at least remain faithful to that proposal's core content. 

The weight of the argument certainly favors Republicans. Economically, expanding oil production will serve as a huge boon to a still faltering U.S. economy. Strategically, it can play a vital role in stabilizing nervous global markets, especially in light of the looming showdown over Iran's nuclear weapons program. And politically, the reality is that no deal on an energy security trust is likely to get done unless Republicans get something significant on expanded drilling. Addressing that central pillar in the GOP's energy platform is probably an essential trade-off if Republicans are expected to overcome their deep-seated skepticism and go along with yet more funding for the Democrats' favorite hobby horse of green energy research.

Of course, it was the prospect of a win-win compromise that represented the genius of the SAFE/ESLC proposal in the first place. Republicans get expanded drilling.  Democrats get more money for green energy. And in a single package, the sometimes competing goals of economic growth, reducing oil dependence, and lowering carbon emissions could all be addressed in a reasonable way. Something for everyone. That's the basis for broad consensus on a bipartisan energy deal that might actually do the country considerable good. If President Obama turns out to be truly serious about it, Republicans should be prepared to meet him half way.

One final note: For any Washington think tank, having the president of the United States specifically reference your organization in a State of the Union address and endorse one of its policy recommendations is the equivalent of hitting the jackpot.  Major kudos to SAFE, an organization that I work with in an advisory capacity. Its success is a great reminder of the extraordinarily important contribution that privately funded non-profit research institutions can make to U.S. policy and the advancement of American interests.

In its scene-setter for the president's State of the Union Address, the New York Times, long one of the most reliable supporters of the Obama Administration, went off script and described the mood inside the White House in unsettling terms: 

"Inside the White House and out, advisers and associates have noted subtle but palpable changes in Mr. Obama since his re-election. "He even carries himself a little bit differently," said one confidant who, like others, asked not to be identified discussing the president. He is relaxed, more voluble and even more confident than usual, these people say, freer to drop profanities or dismiss others' ideas -- enough that even some supporters fear the potential for hubris."

That striking text was in my mind as I studied the President's State of the Union Address. It was, as advertised, mostly about domestic policy. The sections that did touch on foreign policy were notable mostly for how disconnected they were from the urgency of the myriad crises confronting the administration:

• The president promised "mission accomplished" in Afghanistan by next year, a remarkably rosy outlook for a conflict that many experts fear is headed toward a far more dismal outcome. On the positive side, however, Obama did not honor Biden's campaign pledge of cutting U.S. troops to zero, thus perhaps tacitly acknowledging that the fight in Afghanistan remains daunting.
• The president boasted about helping allies take the fight to al Qaeda and its affiliates, but elided over the setbacks and reversals that have spread that fight to new regions.
• The president asserted that he had "worked tirelessly" on a new legal framework for the war on terror, about which he had kept Congress "fully informed" -- his only nod to the groundswell of opposition and outcry to these very same initiatives.
• The reference to North Korea's latest nuclear test could hardly have been more perfunctory and the mention of Iran was likewise ritualistic. Nowhere does he acknowledge that both policy lines are failing. Perhaps the biggest concession in this regard was what was not said -- contrary to predictions, the president did not announce a bold new round of nuclear cuts and instead promised only to "engage Russia to seek further reductions..."
• The president's references to Syria were even more cursory, oddly out of synch with the dramatic revelations regarding internal debates over Syria policy and the even more dramatic and tragic descent into chaos in Syria itself.
• On trade, the president renewed old promises to deliver on a Trans-Pacific Partnership and made new proposals to launch a similar round with our Atlantic partners -- but gave no explanation for why the trade agenda has languished on his watch.

Indeed, on the national security and foreign policy front, Obama's biggest State of the Union play involved announcing a new executive order to increase "information sharing" in the area of cyber defense. This is a sound and sensible measure in an area where the administration has made genuine contributions, but it is modest in light of the threat.

All told, the foreign policy section was troubling not because it proposed a range of dangerous policies, but because it seemed not to recognize how dangerous the world is becoming for U.S. policy. It seemed to be the speech of someone who felt he was in an unassailable position and did not think there was much to argue about and thus little on which he needed to persuade.

Relatedly, an earlier New York Times article addressed a theme well-familiar to the denizens of Shadow Government: the stark contrast between Obama's Bush-bashing rhetoric and Bush-embracing war on terror policies. I am quoted in the article, a syntax-mangling snippet from a longer conversation I had with the reporter, Peter Baker, who asked me to explain the disconnect.

I told him I could think of two possible explanations. One is mere hypocrisy -- that is, Obama knows that he has been the pot calling the kettle black and is happy to continue to do so until he pays some political price for it. I favored, however, a second explanation, one perhaps a wee bit more generous to the administration: the president and his backers sincerely believe that he was acting more responsibly than the Bush Administration because they sincerely believe in a cartoon caricature of the Bush policies. According to the caricature, Bush enacted certain policies for some combination of nefarious reasons -- he was power-hungry, he was seeking partisan advantage, he was beholden to certain oil and gas interests, he was lying to the public, he was exaggerating the threat, etc. -- and he did so without any regard to respecting civil liberties and other ethical values. By contrast, Obama enacted the same sort of policies, but only so as to protect Americans and only after due regard to balancing civil liberties and other ethical concerns.

Granted this second explanation is not all that more generous to the administration, and so I am not surprised that my friends on the other side of the aisle bristle at it. Their reactions fit neatly into two groups. About half have expressed great outrage that I would even suggest that Obama holds such a view. And the other half have expressed great outrage that I would call such a view a caricature since it is obvious to them that the view is correct!

I agree with my colleague Peter Feaver that the president's State of the Union address focused predominantly on domestic policy. This is unsurprising, however, given the economic and other domestic challenges faced by the United States and President Obama's preoccupation with those challenges since assuming office.

Nevertheless, I believe that the 2011 State of the Union address demonstrated an evolution in the Obama administration's foreign policy focus. The president's first State of the Union address in 2009 dealt briefly with Iraq (reaffirming the U.S. intention to depart), Afghanistan and Pakistan (announcing a review of strategy to "defeat al Qaeda and combat extremism"), and the Guantanamo Bay detention center (promising to close it). He also announced a "new era of engagement," stressing the United States' need for help in addressing the world's problems and the world's need for U.S. leadership. All in all, about 400 words were devoted to foreign policy.

The 2010 State of the Union address reprised the 2009 themes (save Gitmo), while including a fuller discussion of nuclear nonproliferation and brief references to Iran and North Korea. The discussion of Iraq and Afghanistan was also meatier. While in 2009 the president said only that he would "announce a way forward in Iraq that leaves Iraq to its people and responsibly ends [the] war," in 2010 he spoke of "partner[ing] with the Iraqi people to promote regional peace and prosperity." While in 2009 his discussion of Afghanistan was limited to mentioning the strategy review and the need to defeat al Qaeda and deny it safehavens, in 2010 he repeated those themes, but also spoke of training Afghan forces, encouraging good governance, combating corruption, and other elements of U.S. policy. And his discussion of "engagement" shifted subtly to focus more on U.S. leadership.

In 2011, these shifts continued, though the foreign policy portion of this year's State of the Union is startlingly similar -- in themes, structure, and length -- to that in 2010 speech. The 2011 version evinces a greater willingness to speak frankly about our foes: the Taliban are mentioned for the first time, and the president referred to the "Iranian Government" rather than the "Islamic Republic of Iran," the latter a phrase which in previous remarks was intended to convey respectfulness and signal our pacific intent. Other areas of the world get their first mention -- India and Brazil, for example. The president reaffirmed his support for the "democratic aspirations of all people," continuing a theme from his most recent U.N. General Assembly speech and Secretary Clinton's speech earlier this month at the Forum for the Future. Unlike in those instances, however, this time the president lent specific support to democracy activists in Tunisia. And crucially, the president strongly asserted his belief in U.S. virtues, values, and leadership, which underpin our global influence and ambitions.

So yes, the speech is short on discussion of foreign policy, contains plenty of gloss (like all State of the Union speeches), omits important issues (like long-term strategies for Iraq and Afghanistan, and Egypt and Lebanon, both gripped by crises), and falls short on defense spending. But it suggests a continued movement away from feel-good foreign-policy slogans (such as 2009's "new era of engagement") and criticism of the previous administration, toward a greater willingness to take sides, focus on vital interests rather than trendy issues, and delve into the complexities and nitty-gritty of policy.

To be sure, there is a long way to go. President Obama has yet to articulate a bold foreign policy vision, and instead continues to take an issue-by-issue approach bound together by unobjectionable, but relatively insubstantial references to "engagement." Campaign rhetoric aside, the United States has been engaged multilaterally in international affairs since at least World War II, and will be for the foreseeable future. It may be that the president believes that restoring the United States' competitive edge -- through economic growth, education, investment in R&D and infrastructure, etc. -- is itself something of a foreign-policy strategy in a globalized world. But while such measures are necessary for maintaining and enhancing U.S. prosperity and leading international role, they do not address how we utilize that role. That is the question that in my view remains unanswered, and which we see the U.S. currently shying away from in places like Egypt. It is unquestionably good that we reaffirm U.S. leadership and influence, but it is not sufficient. Eventually the president must lay out to what end and on whose behalf we will exercise our leadership and wield our influence.

The State of the Union address offers any president the temptation to revel in the pageantry and splendor of the office. He can sound resonant themes and expound on U.S. values. He can embellish these motifs with the recognition of carefully-placed guests in the balcony.

President Obama is at his best when delivering high-altitude orations about national aspirations. This can be terrifically effective in a campaign or in a moment of national mourning. It can also be a necessary prelude to effective action, a way of rallying the public to support difficult choices.

The problem is that on the key issues of trade and the deficit President Obama's prelude to action has now lasted more than half his term. On each, he has earnestly stressed the national need for action. Yet on trade, he has only moved the country to where it was in mid-2007. On the deficit, he has moved the country backwards.

In his weekly radio address on Saturday, the president said, "Here's the truth about today's economy: If we're serious about fighting for American jobs and American businesses, one of the most important things we can do is open up more markets to American goods around the world."

This has the standard mercantilist twist of the president's trade advocacy, but it's a worthy theme. How does it translate into action?

Read on

All senior agency heads in the U.S. government, as well as second, third, and fourth tier officials, try their hardest to inject at least a sentence into the State of the Union address. It is the shortcut for ensuring that their pet policy initiatives at least see the light of day, even if they are not brought to fruition. This year's address will be no different, and for those concerned about national security, what the president says, and what he does not say, will be of the utmost importance.

As senior DoD leaders are already pointing out, the upcoming fiscal year, FY 2012, marks an inflection point in defense spending. There have four such points since World War II: those after that war, Korea and Vietnam, marked the end of major conflict. The fourth, like the one anticipated for the next fiscal year, was the product of domestic economic pressures and growing deficits. How far the defense budget ultimately declines will very much depend on not only the budget levels predicted for FY 12, but for the following five years as well. The president should be cautious about specific budget targets beyond the upcoming fiscal year; a signal of further anticipated declines could send misleading signals to the United States' adversaries about the degree of her determination to confront them at any future time.

The president should, on the other hand, throw his weight behind key DoD initiatives, notably Tricare reform. Secretary of Defense Gates has made the strongest case for increasing Tricare charges; the president should back him up, and do so forcefully.

Read on