OBAMA: We have been drilling. We are drilling right now. Under my administration, America is producing more oil today than at any time in the last eight years.

(CHEERS AND APPLAUSE)

At any time. That is a fact.

We have added enough oil and gas pipeline to circle the entire earth and then some.

The problem is not that we are not drilling or that we are not producing more oil. We are producing more oil than any time in the last eight years. That is not the problem. There are probably a few spots where we are not drilling, it is true. I'm not drilling in the South Lawn. We are not drilling next to the Washington Monument.

(END VIDEO CLIP)

HANNITY: I don't find any of this funny. Now, there was a study, Congressional research service, which by the way is nonpartisan. They came out. He is bragging about we increased drilling. No, 96 percent of the total increase of domestic production has occurred on nonfederal land. The number of leases and permits have been cut in half and more. So, he is being dishonest there.

ALLEN: Well, the fact, I mentioned Virginia. He has said no to the people of Virginia who would like to explore off our coast. He said no to the oil from Canada.

HANNITY: Keystone.

ALLEN: Yes. The Keystone pipeline. And the other thing is, is with their cap-and-trade energy tax that they're trying to impose through EPA, that is going to shut down coal which is a major supplier of jobs and obviously affordable electricity in our country.

So, the reality is, not only is he against it in Alaska and Virginia, the permits in the Gulf are a fraction of where they were before and then if we are not going to get it from America, Canada is a good reliable neighbor and ally.

And so, the reality is everything they are doing is driving up the costs and they say, well, supply doesn't matter. The Saudis just this week said they were going to increase production. The price of oil dropped.

HANNITY: Yes, but I think just by the prospects of them drilling. If we announced it, it would --

ALLEN: Yes, it would.

HANNITY: Liberals get mad because I call the president "President Crybaby." I mean, blames George W. Bush for everything except the price of gas that he inherited. You know, $1.80 a gallon. He blames talk radio, Rush Limbaugh or Karl Rove, Sean Hannity, Fox News, Ed Gillespie, the Supreme Court, the Arab Spring, tsunamis, kiosks, ATMs, earthquakes, Europe, Wall Street, rich, millionaires, billionaires, and I can go on. He blames everybody.

Now, we found somebody else new to blame today. The reason for Solyndra per se was not his fault even though it was his bundlers that got access to his White House that four times the week before they got your money that they poured down the drain, now he is blaming China and Congress for his decision. Watch this.

(BEGIN AUDIO CLIP/MARKETPLACE, MARCH 21)

OBAMA: We are doing the all the above strategy right. Obviously, we wish Solyndra hadn't gone bankrupt. Part of the reason they did was because the Chinese were subsidizing their solar industry and flooding the market in ways that Solyndra couldn't compete.

But understand, this was not our program about per se. Congress, Democrats and Republicans, put together a loan guarantee program because they understood historically that when you get new industries -- it is easy to raise money for startups but if you want to take them to scale often times, there is a lot of risk involved and what the loan guarantee program was designed to do was to help startup companies get to scale.

(END AUDIO CLIP)

HANNITY: He is not drilling, claims he is. And then he is responsible for the decision, the Bush administration rejected it. It's not our problem program per se because of the Chinese and Congress. Is that how desperate they are?

ALLEN: Yes. And they hope no one is paying attention to the accurate facts. Solyndra is probably the word that best explains this administration's counterproductive punishing energy policies.

But Sean, the good news is, it doesn't have to be this way. And our campaign is about envisioning a better future for our country and part of that is unleashing our American energy resources and we just need to change the players and the deciders in Washington, D.C. to make sure that we have decision makers who have a political will to say look, we have these energy resources under our land and under our water. We have the resources and the creativity of the American people. Let's make sure that America, we can have an industrial renaissance in this country, improve people's quality of life. Not have this -- the people are hurt the worst by this are lower and middle income working people, and this is a very regressive harmful policy for families, particularly those that live in the suburbs and rural areas that drive longer distances.

HANNITY: Listen, if we would inflate our tires, get tune-ups and use algae, we would all be better off.

ALLEN: Algae is another great idea. Yes, I say that of course sarcastically.

HANNITY: Of course. Good to see you. Thank you for being with us.

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