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How High Will Gas Go?

Posted By Todd Thurman On April 12, 2011 @ 4:00 pm In Energy | Comments Disabled

It’s a question that seems so 2008, but it is rearing its ugly head again. The average price of a gallon is already nearing record levels [1] and there is no relief in sight. Some areas, like Chicago, could see prices as high as five dollars a gallon [2] by the Memorial Day. Obama would like to blame you [3] for the high gas prices, but the root problem is his energy policy that is stifling exploration in America.

In the aftermath of the BP disaster in the Gulf of Mexico, President Obama instituted a moratorium on drilling that killed jobs in the region. The moratorium was lifted, but the Obama Administration was still not issuing new permits, and was held in contempt of court [4] as a result. It was a knee-jerk reaction that has resulted in lost jobs [5] and has cost the federal government billions in lost revenue [6].

Retail gasoline sales were down in the United States as concerned consumers are trying to save every penny, but as the world demand for oil increases, the price is likely to continue to rise. Instead of trying to meet that increased demand with more supply, we are getting less supply. The Obama Administration does not want us to drill in our own oceans [7], but he has no problems if other countries want to do the same thing [8].

So far, the Administration’s energy policy is a policy that has not helped us increase supply and create jobs but instead kill jobs and cripple regional economies dependent on oil and gas production. Alternative solutions, such as special tax breaks for natural gas vehicles [9] and subsidies for the production and consumption of electric cars [10] does not replace the fact that American consumers demand gasoline-powered vehicles. Even with the tax credits for electric vehicles, people are not buying them. Meanwhile gas is going up and we are all feeling the pain at the pump. There is a lot the Obama Administration can do [11] to help curb the gas prices, and there are a lot of things they should not do [12].

Leaving oil reserves untapped while providing preferential treatment for nonviable alternatives is not the answer Americans need.


Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2011/04/12/how-high-will-gas-go/

URLs in this post:

[1] nearing record levels: http://www.nytimes.com/2011/04/12/business/12fuel.html?partner=rss&emc=rss

[2] five dollars a gallon: http://chicago.cbslocal.com/2011/04/11/gas-prices-climbing-toward-5-per-gallon/

[3] Obama would like to blame you: http://blog.heritage.org../2011/04/07/president-obama-blames-you-for-high-gas-prices/

[4] was held in contempt of court: http://blog.heritage.org../2011/02/22/judge-to-obama-administration-get-moving-on-drilling-permits/

[5] resulted in lost jobs: http://blog.heritage.org../2010/11/23/obamas-war-on-gulf-drilling-sends-american-jobs-overseas/

[6] billions in lost revenue: http://blog.heritage.org../2011/01/16/obamas-anti-drilling-policies-costing-federal-government-billions-in-lost-revenue/

[7] does not want us to drill in our own oceans: http://blog.heritage.org../2011/02/04/permitorium-103-gulf-of-mexico-drilling-plans-await-government-approval/

[8] other countries want to do the same thing: http://blog.heritage.org../2011/03/28/drill-brazil-drill-obama-says/

[9] tax breaks for natural gas vehicles: http://www.foundry.org/2011/04/08/drivers-don%E2%80%99t-need-a-mandate-for-choice/

[10] subsidies for the production and consumption of electric cars: http://www.foundry.org/2011/04/01/electric-cars-slide-over-for-new-gas-powered-cars/

[11] There is a lot the Obama Administration can do: http://www.heritage.org/Research/Reports/2011/03/What-To-Do-About-High-Oil-Prices

[12] lot of things they should not do: http://blog.heritage.org../2011/03/09/ten-donts-for-our-government-on-gas-prices/

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