Below are the key portions of President Obama’s speech on the oil spill in the Gulf, and I have inserted my thoughts about the speech in between paragraphs.

“Already, this oil spill is the worst environmental disaster America has ever faced. And unlike an earthquake or a hurricane, it’s not a single event that does its damage in a matter of minutes or days. The millions of gallons of oil that have spilled into the Gulf of Mexico are more like an epidemic, one that we will be fighting for months and even years.”

Let’s hope the fighting it for years is just hyperbole, the relief wells should be finished by mid-July, which will shut down the ongoing leak. However, he is right that the impact of this will last for years in terms of the clean up and for the environmental impact to dissipate — heck, it could even be as long as a decade.

Given the reports of scores of clean up workers getting sick from the fumes (and that they would be fired if they wore their own protective gear), let alone the failure of BP (BP) to provide protective equipment like respirators to the clean-up crews, I’m afraid that the epidemic metaphor will prove to be far too apt.

“But make no mistake: We will fight this spill with everything we’ve got for as long as it takes. We will make BP pay for the damage their company has caused. And we will do whatever’s necessary to help the Gulf Coast and its people recover from this tragedy.”

It would have been nice if President Obama had offered a bit more detail. So far, we have not been fighting this with everything we’ve got, but if this is a commitment to start, then bravo. As a start, BP has agreed, under pressure, to set up a $20 billion fund in escrow to be administered by a independent third party to make sure the claims are indeed paid. That is a very good first step. Obama probably did not have the legal authority to force it, but he was apparently persuasive enough in his meeting today with the top brass at BP to get them to do it.

“Tonight I’d like to lay out for you what our battle plan is going forward: what we’re doing to clean up the oil, what we’re doing to help our neighbors in the Gulf, and what we’re doing to make sure that a catastrophe like this never happens again.

“First, the cleanup. From the very beginning of this crisis, the federal government has been in charge of the largest environmental cleanup effort in our nation’s history — an effort led by Admiral Thad Allen, who has almost 40 years of experience responding to disasters.

“We now have nearly 30,000 personnel who are working across four states to contain and clean up the oil. Thousands of ships and other vessels are responding in the Gulf. And I’ve authorized the deployment of over 17,000 National Guard members along the coast. These servicemen and women are ready to help stop the oil from coming ashore, they’re ready to help clean the beaches, train response workers, or even help with processing claims — and I urge the governors in the affected states to activate these troops as soon as possible.”

The National Guard is already stretched very thin after repeated deployments to Iraq and Afghanistan. I think a bet route to go would have been the creation of a second Civilian Conservation Corps for the summer. This would kill two birds with one stone (oil slick?). The teenage unemployment rate is over 26%, and summer jobs are very hard to find. A CCC 2.0 would help solve that problem as well as getting the coast cleaned up. However, the National Guard route can probably be implemented much more quickly and would not have to wait on any Congressional Action.

“Because of our efforts, millions of gallons of oil have already been removed from the water through burning, skimming and other collection methods. Over five and a half million feet of boom has been laid across the water to block and absorb the approaching oil. We’ve approved the construction of new barrier islands in Louisiana to try to stop the oil before it reaches the shore, and we’re working with Alabama, Mississippi and Florida to implement creative approaches to their unique coastlines.”

Careful you don’t hurt your arm patting yourself on the back there, Barack. With the latest estimates being that the well is gushing over 40,000 barrels a day, that works out to 1.68 million gallons a day being spilled. In that context millions of gallons being removed is not all that impressive. The booms have generally not been well tended, and thus have largely been ineffective. The approval of the barrier islands took way too long, and during the delay a lot of damage was done.

“A few months ago, I approved a proposal to consider new, limited offshore drilling under the assurance that it would be absolutely safe –- that the proper technology would be in place and the necessary precautions would be taken.”

Who made the assurances? Name some names. Was it from people in the industry, or people in the administration? Someone should be held accountable. While clearly Obama is a bright guy, I don’t expect him to be an expert in the complex engineering field of deepwater drilling, but he should have access to those that are.

This is not the first time that a blowout preventer has failed, although it is the first time that one has failed in such deep water. At the Congressional hearing yesterday, the unfamiliarity of the five CEOs of the major oil firms with the Ixpac 1 blowout in the Mexican part of the Gulf of Mexico 30 years ago was stunning. Why do those guys earn the big bucks again?

“That obviously was not the case in the Deepwater Horizon rig, and I want to know why. The American people deserve to know why. The families I met with last week who lost their loved ones in the explosion — these families deserve to know why. And so I’ve established a National Commission to understand the causes of this disaster and offer recommendations on what additional safety and environmental standards we need to put in place.

“Already, I’ve issued a six-month moratorium on deepwater drilling. I know this creates difficulty for the people who work on these rigs, but for the sake of their safety, and for the sake of the entire region, we need to know the facts before we allow deepwater drilling to continue. And while I urge the Commission to complete its work as quickly as possible, I expect them to do that work thoroughly and impartially.”

That National Commission should have been formed about six weeks ago. Yes, we need a detailed review of what went wrong and how to make sure it never happens again. Clearly we will have to start drilling again in deep water. That is where most of the world’s untapped reserves of oil are located, not just in the Gulf, but also off Brazil and West Africa.

It should be a source of huge national embarrassment that the environmental and safety standards in the U.S. were substantially weaker than those in Brazil (and perhaps a source of pride in Brazil). When we do start drilling again, we need to know that every possible precaution has been made to prevent this from happening again.

“One place we’ve already begun to take action is at the agency in charge of regulating drilling and issuing permits, known as the Minerals Management Service. Over the last decade, this agency has become emblematic of a failed philosophy that views all regulation with hostility — a philosophy that says corporations should be allowed to play by their own rules and police themselves.

“At this agency, industry insiders were put in charge of industry oversight. Oil companies showered regulators with gifts and favors, and were essentially allowed to conduct their own safety inspections and write their own regulations.

When Ken Salazar became my Secretary of the Interior, one of his very first acts was to clean up the worst of the corruption at this agency. But it’s now clear that the problem there ran much deeper, and the pace of reform was just too slow. And so Secretary Salazar and I are bringing in new leadership at the agency — Michael Bromwich, who was a tough federal prosecutor and Inspector General. And his charge over the next few months is to build an organization that acts as the oil industry’s watchdog — not its partner.”

I would have liked to see him go much further. Personally I think that everyone in the MMS who has any authority — just as a crude measure, anyone making over $40,000 a year — should have joined the ranks of the unemployed. However, civil service rules probably prevent that from happening.

But hopefully the new head of the MMS will clean house. The agency is a total mess, and while some of the most egregious practices were curbed before the Transocean (RIG) Deepwater Horizon blew up and sank, the reforms only scratched the surface of rot that went very deep.

New rules (not only applying to the MMS) should be put in place that prevent any regulator from taking a job with a firm that is regulated by that agency for a period of, say, three years after leaving the agency need to be put in place. The revolving door between regulatory agencies and the industries they regulate has to be closed and kept closed. Regulators should not be in bed with industry insiders, which in the case of the MMS they were — LITERALLY!

“For decades, we have known the days of cheap and easily accessible oil were numbered. For decades, we’ve talked and talked about the need to end America’s century-long addiction to fossil fuels. And for decades, we have failed to act with the sense of urgency that this challenge requires. Time and again, the path forward has been blocked — not only by oil industry lobbyists, but also by a lack of political courage and candor.

“The consequences of our inaction are now in plain sight. Countries like China are investing in clean energy jobs and industries that should be right here in America. Each day, we send nearly $1 billion of our wealth to foreign countries for their oil. And today, as we look to the Gulf, we see an entire way of life being threatened by a menacing cloud of black crude.

“We cannot consign our children to this future. The tragedy unfolding on our coast is the most painful and powerful reminder yet that the time to embrace a clean energy future is now. Now is the moment for this generation to embark on a national mission to unleash America’s innovation and seize control of our own destiny.”

Bravo! However, moving to a renewable energy based economy is going to take a long time. That is not a reason to not start and do everything we can to get there as soon as we can. While clearly BP is responsible for the mess (possibly with some culpability on the part of Transocean and Halliburton (HAL), in a larger sense, the Pogo principal applies: “we have met the enemy and he is us.”

It is our insatiable thirst for cheap oil that causes oil companies to drill in ever-more challenging and difficult locations. Simply importing more oil from abroad is not a solution; we already send over a billion dollars a day abroad for the oil we burn, accounting for about half of our trade deficit. If left unchecked, the trade deficit will eventually bankrupt the country.

“This is not some distant vision for America. The transition away from fossil fuels is going to take some time, but over the last year and a half, we’ve already taken unprecedented action to jumpstart the clean energy industry. As we speak, old factories are reopening to produce wind turbines, people are going back to work installing energy-efficient windows, and small businesses are making solar panels.

“Consumers are buying more efficient cars and trucks, and families are making their homes more energy-efficient. Scientists and researchers are discovering clean energy technologies that someday will lead to entire new industries.”

Obama has done more on this front than any president since Carter, but it is just a drop in the ocean compared to the need. So much more to do, and a very good way to stimulate the economy. In the long run we would have been much better off if the tax rebate checks that were part of the ARRA last year instead went into more clean energy research and loan guarantees. It is not to late to redouble our efforts on this front.

“Each of us has a part to play in a new future that will benefit all of us. As we recover from this recession, the transition to clean energy has the potential to grow our economy and create millions of jobs -– but only if we accelerate that transition. Only if we seize the moment. And only if we rally together and act as one nation –- workers and entrepreneurs; scientists and citizens; the public and private sectors.

“When I was a candidate for this office, I laid out a set of principles that would move our country towards energy independence. Last year, the House of Representatives acted on these principles by passing a strong and comprehensive energy and climate bill –- a bill that finally makes clean energy the profitable kind of energy for America’s businesses.

“Now, there are costs associated with this transition. And there are some who believe that we can’t afford those costs right now. I say we can’t afford not to change how we produce and use energy -– because the long-term costs to our economy, our national security and our environment are far greater.”

The House passed a bill almost a year ago, but the Senate has been twiddling its thumbs since then. How about a call for the Senate to get into gear and pass something? Its not just the GOP that is holding things up in the Senate, either — many Democratic senators from coal states have been just as responsible for the lack of action on this very important legislation. The House bill is far from perfect, but is a major improvement over where we are today.

“So I’m happy to look at other ideas and approaches from either party -– as long they seriously tackle our addiction to fossil fuels. Some have suggested raising efficiency standards in our buildings like we did in our cars and trucks. Some believe we should set standards to ensure that more of our electricity comes from wind and solar power. Others wonder why the energy industry only spends a fraction of what the high-tech industry does on research and development -– and want to rapidly boost our investments in such research and development.”

How about ALL OF THE ABOVE? This is very passive language and disappointing. “Some” people, “others” is not very forceful, and is hardly a ringing endorsement of the ideas, all of which have merit and are by no means mutually exclusive. It would have been much better if he left out those words and simply said, “We need to raise efficiency standards for our buildings, we need to set standards to ensure our electricity comes from Wind and Solar, and we need to encourage the energy industry to invest more in R&D.”

“All of these approaches have merit, and deserve a fair hearing in the months ahead. But the one approach I will not accept is inaction. The one answer I will not settle for is the idea that this challenge is somehow too big and too difficult to meet.

“You know, the same thing was said about our ability to produce enough planes and tanks in World War II. The same thing was said about our ability to harness the science and technology to land a man safely on the surface of the moon. And yet, time and again, we have refused to settle for the paltry limits of conventional wisdom.

“Instead, what has defined us as a nation since our founding is the capacity to shape our destiny -– our determination to fight for the America we want for our children. Even if we’re unsure exactly what that looks like. Even if we don’t yet know precisely how we’re going to get there. We know we’ll get there. 

“It’s a faith in the future that sustains us as a people. It is that same faith that sustains our neighbors in the Gulf right now.”

Overall the speech was OK, but it aimed very low and was lacking in specifics. The speech was only 19 minutes long. Stretching it to 30 minutes and providing more details would have been a very good idea.

Dirk van Dijk, CFA is the Chief Equity Strategist for Zacks.com. With more than 25 years investment experience he has become a popular commentator appearing in the Wall Street Journal and on CNBC. Dirk is also the Editor in charge of the market beating Zacks Strategic Investor service.

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