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Morning Bell: How Obama Is Making Gas Prices Higher
Posted By Conn Carroll On March 3, 2011 @ 9:10 am In Ongoing Priorities | Comments Disabled
Yesterday, for the first time since September 2008, the price of a barrel of crude oil topped $100  on the New York Mercantile Exchange. But while the recent unrest in the Middle East has had some marginal effect on rising prices, the most significant factor has been increased oil demand worldwide. That is why, long before the recent protests even began, analysts were predicting $4 a gallon by this summer  and $5 a gallon by 2012 . Anyone could have predicted that the recovering world economy, coupled with the continued growth of India and China, was going to push oil prices higher. So if an Administration wanted to keep gas prices down, they could have mitigated increased oil demand by increasing domestic oil production. But that is not what the Obama Administration has done. Instead of increasing domestic oil supplies, the Obama Administration has cut them at every opportunity, and Americans are now suffering because of those choices.
Back in February, when the protests in Egypt were first unfolding, Energy Secretary Steven Chu was asked what the Administration could do to combat rising world oil prices. Chu responded : “The best way America can protect itself against these incidents is to decrease our dependency on foreign oil, in fact to diversify our supply.” It is now one month later and the Administration has not updated its talking points. Pressed on gas prices yesterday, White House spokesman Jay Carney said : “We are also, as you have seen over the past two-plus years, very focused on the need precisely to develop other energy sources so that we are not as dependent on foreign oil as we have been in the past.” So what are these “other energy sources” the White House has been developing? How does the White House plan to “diversify supply” to reduce gas prices? The answers are corn, wind, sun, and electric cars. And they won’t help a bit.
According to Heritage analysts Nick Loris and John Ligon, Obama’s energy policy consists of : increased biofuel production, increased electric vehicle production, and increased renewable power production. These are all terrible public policies. The major source of biomass production, corn-based ethanol, produces less energy per unit volume than gasoline, contributes to food price increases, costs taxpayers $4 billion to produce 2 percent of the total gasoline supply, and has dubious environmental effects. The electric cars the Obama Administration has invested in are prohibitively costly, do not fit the needs of the American consumer, and are also environmentally suspect. The other sources of energy the Obama Administration is subsidizing and promoting—wind and solar—not only make up a minuscule 1 percent of America’s electricity generation but are entirely irrelevant to gasoline supply in the transportation sector.
But not only has President Obama failed to diversify our energy supply in any meaningful way; he has actually proactively moved to cut our own domestic energy supplies :
“The Obama Administration is repeating the mistakes of President Jimmy Carter’s failed energy policies, which marred his term and stigmatized the 1970s. They are leading us straight into another national energy disaster,” Steve Forbes warned  in Politico yesterday. And what would that “energy disaster” cost the American people? According to The Heritage Foundation’s Center for Data Analysis , an increase in the per-barrel price of imported crude oil by $10 in the first quarter of 2011 and by $20 in the second quarter would reduce gross domestic product by $20 billion, drop potential employment by nearly 100,000 jobs, and increase gasoline prices by 18 cents per gallon in 2011 alone.
Yesterday, Carney said that “the president is extremely aware of the impact that a spike in oil prices can have on gasoline prices and therefore on the wallets and pocketbooks of average Americans.” If that is true, and if Energy Secretary Chu really has recanted his belief that Americans ought to be paying $8 a gallon for gas , then the President must completely reverse his entire energy policy so far by allowing Americans to develop our own natural resources, issuing permits in a timely manner, and removing regulatory and litigation delays on energy projects .
Article printed from The Foundry: Conservative Policy News Blog from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2011/03/03/morning-bell-how-obama-is-making-gas-prices-higher/
URLs in this post:
 the price of a barrel of crude oil topped $100: http://www.dallasnews.com/business/headlines/20110302-crude-oil-tops-100-per-barrel-for-first-time-since-2008.ece
 $4 a gallon by this summer: http://www.necn.com/12/31/10/Stocks-quietly-finish-mixedOil-prices-ri/landing.html?&blockID=3&apID=75f4dca7c13b4504965409c7a00b1b8f
 $5 a gallon by 2012: http://abcnews.go.com/US/oil-executive-gas-prices-soar-2011-2012/story?id=12509267
 responded: http://www.cbsnews.com/8301-503544_162-20029935-503544.html
 said: http://blogs.abcnews.com/politicalpunch/2011/03/what-is-the-white-house-doing-about-oil-prices-todays-qs-for-os-wh-322011.html
 consists of: http://www.heritage.org/Research/Reports/2011/03/What-To-Do-About-High-Oil-Prices
 proactively moved to cut our own domestic energy supplies: http://www.foundry.org/2011/01/07/gas-prices-under-president-obama-in-pictures/
 warned: http://www.politico.com/news/stories/0311/50417.html
 Energy Secretary Chu really has recanted his belief that Americans ought to be paying $8 a gallon for gas: http://sf.streetsblog.org/2009/04/24/steven-chu-forced-to-recant-belief-in-higher-gas-prices/
 President Obama believes racism is a “key component” of the Tea Party: http://www.usnews.com/news/articles/2011/03/02/obama-says-race-a-key-component-in-tea-party-protests?PageNr=3
 “Allahu Akbar”: http://abcnews.go.com/Politics/gunman-shouting-allah-akbar-kills-us-airmen-germany/story?id=13037467
 prohibits public-employee unions from bargaining: http://online.wsj.com/article/SB10001424052748704005404576176812441615134.html?mod=WSJ_hp_LEFTTopStories
 fining any Senator who misses two or more days of session: http://www.620wtmj.com/news/local/117248828.html
 says: http://www.politico.com/news/stories/0311/50548.html
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