Hubbard acknowledged: "It's going to take a while for the world energy supply to expand so prices can drop."

The administration has shied away in the past from giving a preferred target for oil prices.

An administration official said later that Hubbard was speaking "theoretically about a goal, but the White House is well aware that markets set the price for oil."

With oil prices soaring, energy policy has vaulted to the top of Bush's economic agenda but Hubbard said Bush is not backing off his goal of passing Social Security legislation this year despite opposition. He suggested, however, that Bush would continue the fight if the legislation hits a snag.

"He's totally patient," Hubbard said. "He's not going to give up."

Hubbard was noncommittal on proposals by House Ways and Means Committee Chairman Bill Thomas, who favors a package that would include incentives to boost retirement savings.

While praising Thomas, Hubbard said that in his talks with California Republican "we have not gotten into those details."

But he cautioned that there were fiscal constraints. "We're always worried about costs."

Some of Bush's fellow Republicans, including Sen. Trent Lott of Mississippi, have publicly distanced themselves from his proposal to reduce promised Social Security retirement benefits to all but low-income workers.

Hubbard disputed that Capitol Hill Republicans were cool to the plan. "My contact up there is exactly the opposite."

Hubbard said Bush would discuss proposals for add-on retirement accounts, but preferred the carved-out approach.

The so-called add-on accounts would not divert Social Security taxes away from the program, while Bush's proposal would direct a portion of those taxes into private accounts.

He said low-income workers are spending all their disposable income on basics like food, housing and transportation and "there's really no extra money to put into an add-on account."

PRESSING SAUDIS ON OIL PRICES

Bush campaigned in 2000 with a promise to "jawbone" OPEC countries and Hubbard said Bush has been pressing Saudi Arabia "and I'm sure others" to try to get prices down.

Asked what can be done now to push oil toward $25 a barrel, Hubbard gave few specifics other than conservation, encouraging Americans to buy hybrid vehicles and the long-standing proposal to open the Arctic National Wildlife Refuge to drilling.

Bush, who is due to give the latest in a series of energy speeches on Monday, has acknowledged that his broad energy plan will not yield short-term relief for motorists.

In a Reuters survey, experts forecast US oil prices would average $48.38 a barrel in 2005 and 2005 and $44.01 in 2006.

The Energy Information Administration has said it expects crude prices to stay above $50 a barrel with gasoline over $2 a gallon through 2006.

Washington is also under pressure from US manufacturers who claim China's currency policy gives Chinese goods an unfair price advantage. China's currency currently trades in a narrow band pegged to the value of the dollar.

Hubbard said China is now in a position to move to a more flexible exchange rate, but deferred on timing to Beijing.

"The Chinese have been reforming their financial system so they are in a position to move to a more flexible exchange rate whenever they decide to do it," Hubbard said.