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  • Obama’s Gas Prices Picture Says All the Wrong Words

    The White House released an infographic entitled “The Obama Energy Agenda & Gas Prices” that highlights a number of facts with regards to domestic oil production, improved fuel efficiency, improved transportation fleet and a clean energy future.

    While a picture may say a thousand words, this graphic conveniently omits critical facts and points that demonstrate that this Administration is choking off oil production and trying to use taxpayer money to force uncompetitive energy sources and technologies into the market.

    • “Increasing Domestic Oil Production.” The facts on the infographic highlight that U.S. crude oil production in 2010 was the highest it has been since 2003 and that the Administration offered over 6 million acres onshore and 37 million acres offshore for lease. But here’s a number of things the graphic doesn’t share: (1) Production in the western Gulf of Mexico dropped nearly a third of a million barrels per day since last April, and the increased production in 2010 is a result of increased horizontal drilling in North Dakota. (2) We can’t drill off the Pacific Coast, Atlantic Coast, or the eastern Gulf of Mexico. (3) The U.S. Environmental Appeals Board withheld air quality permits preventing Shell from moving forward to develop 27 billion barrels of oil off the coasts of Alaska. The Environmental Protection Agency already issued two air permits, but Earthjustice filed a petition to review the permits, causing the Appeals Board to act. (4) The Administration’s own Energy Information Administration projects that oil production will decline significantly in 2011 and 2012.
    • “Better Mileage for Our Cars.” The second part of the White House’s infographic focuses on improved fuel efficiency and touts that the 35.5 mile-per-gallon (mpg) fuel efficiency standards for model years 2012–16 will save consumers $3,000 and reduce oil use. Fuel efficiency standards are one of many examples of the government dictating choices for American consumers, and they showcase the government’s belief that consumers and producers are disinclined to save money. There are many reasons why consumers purchase vehicles, including size, safety, fuel efficiency, costs of repairs, and price. It’s not the government’s role to restrict that choice and ignore other factors. Although the Administration acknowledges a higher sticker price for vehicles as a result of its mandate, some experts argue those estimates are low. And while many Americans simply cannot afford to purchase a new vehicle now, those who are buying still prefer larger vehicles, which demonstrate the government’s inability to predict what consumers want. Rebecca Lindland of the forecaster IHS Automotive recently said, “The change in consumer buying behavior toward better fuel economy is not aggressive enough to meet the 35.5 mpg standard.”
    • “Improving Transportation.” The third layer of the picture highlights the Administration’s work in promoting electric vehicles, cleaner buses, paratransit vans, and increased biofuel production. The real title of this section should be “What Exists in the Marketplace Only Because of Taxpayer Subsidies.” These technologies rely heavily on the government, from direct subsidies, consume tax rebates, loan guarantees, and production tax credits. The infographic even mentions that the stimulus bill funded the newer bus fleets. It also says, “To help advance the commercialization process, the administration has set a goal of breaking ground on at least four commercial-scale cellulosic or advanced bio-refineries over the next two years.” In reality, the profit motive is enough incentive to advance the commercialization process; the fact that the production of cellulosic ethanol necessitates the government’s help simply means the value does not exceed the cost and it’s a bad deal for consumers and taxpayers. When the government distorts the market so heavily with preferential treatment, it crowds out investment for the good ideas.
    • “Investing in a Clean Energy Future.” The last fragment of the infographic pushes President Obama’s desire to eliminate tax breaks for the oil and gas industry and use that money to help “invest” in clean energy to meet his standard of 80 percent clean energy by 2035. First, these tax breaks are not specific to the oil and gas industry, and repealing them would be a punitive tax hike on the industry. Secondly, increasing production of these energy sources would affect electricity production, not transportation fuels. We use very little oil to produce electricity. Because a clean energy standard would mandate the production of pricier electricity, President Obama’s clean energy standard would drive up rates, which, ironically, would make electric vehicles less economically enticing. Obama’s proposal for a clean energy standard is cap and trade by another name.

    This may be the Obama Administration’s energy and gas price agenda, but it’s not a good one for the economy, consumers, or taxpayers.

    Posted in Energy [slideshow_deploy]

    11 Responses to Obama’s Gas Prices Picture Says All the Wrong Words

    1. George, CO says:

      2010 oil production is the result of initiatives under George Bush. The wells didn't just pop up overnight. Same with natural gas. The idiocy of touting 750 millions barrels saved by hhaving electric cars over a 35 year period and not allowing access to 29 billion barrels in Alaska is stunning.

    2. Eddie Little, Housto says:

      Of course, Mr Obama has no clue what goes on in the Oil and Gas industry. There are many places to drill in the U.S. and the poeple and technology to get the oil and gas out and into our cars and homes. But with the federal government being led by someone who knows nothing about how to find, drill and produce oil and gas. Obama and his cronies should go back to what they know how to do. Oh wait they can't run a country either.

    3. Lloyd Scallan (New O says:

      When we consider that nothing that come from this Obama led administration is based on facts, and when we realize that oil effects almost ever part of our Amerian way of life, their can be only one conclusion. Obama is delibertly attempting to destroy our capitalist system by using the lack of oil as the major catalyst. How many time must it be repeated that these people will do or say

      anything to get their socialist/communist agenda shoved down our throats.

    4. ROY S. MALLMANN II says:

      We have to end the oil speculators..period. You cannot take away the normal business tax deductions for the oil companies that other industries enjoy. You could use a windfall profits tax to force them to reinvest though. This President and his corrupt administration do not have a clue and they are only in it for themselves and their personal enrichment. They use any excuse possible to build up union membership at our expense. These people do not care about the American public other than their money. The only way we are going to get the gas prices down is to replace them…period!

    5. Leon Lundquist, Dura says:

      Nicolas, thanks for the report, "Obama's mouth is moving again!" These Progressives are awfully slick using Public Money to promote Socialist Causes! Americans are getting used to clipping their wings. We have been doing that 'conservation' trick for years now. I think the savings Obama promotes have already been realized, that is why American Oil Consumption has been flat for years. There is pent up Demand that is over the Moon right now. Amazing that Obama wants to prop up Socialist Brazil, send American Capital to them, but when it comes to American Enterprise? "Nothing!"

      'Precedent' Obama is the most profound liar ever to hold the Office! He has no qualms about Bald Face Lies because "Perception IS Reality!" You cannot even begin to understand what is going on unless you credit the Half Vast Left Wing Conspiracy! Obama is actually Communizing America. Taking from Big Oil to benefit Big Crony Capitalists like GE is the tip of the iceberg. Nobody ever mentions that Energy Consumers pay all his new taxes! It isn't Big Oil paying! It is American Consumers! The real Art of Deception is carried on by unsuspecting Republicans who actually buy the underlying premise! I don't buy it! The Big Lie is that the Rich Pay Taxes. No! They don't! They pass all their taxes to the Consumers! All taxes are paid by the People! There is no such thing as Tax Cuts For The Rich!

      Energy Prices will 'necessarily skyrocket' because Obama and his Gang are Stealing Money! Their Gimmie Gang will get rich in the Climate Exchange! All the Carbon Junk Science is merely the deadly art of Theft, and American Entrepreneurs will take the blame when Obama fails!

    6. Bobbie says:

      There's no excuse. All these crisis' are deliberate by government design. Obama adds money, regulations and mandates to the problems for a lasting duration and fear, instead of easy solutions that will correct his incompetence and employ overnight. He has ability to reduce the costs and there is simply no excuse except his own which isn't in the best interest of the good of America. Obama plugs his ears from common sense.,, doot dee doot dee doo la la la la la la na na nunna na! The immaturity of these important matters is a call for strong, mature, dignified, adult leadership…

    7. Renny, Maryland says:

      All of his doings are patterned on "The Alinsky Model!!!" Why won't someone expose this as Glen Beck did???? It's all happening!

    8. AD says:

      You have to wonder when was the last time that Mr. Obama filled up his own gas tank, and then paid the bill with his own money?

    9. Stirling, Pennsylvan says:

      "You could use a windfall profits tax to force them to reinvest though." – spoken like a true liberal democrat… I'm sorry but it's this thinking that has our country looking more like an eastern european socialist state then a true free market system. Only in a dictatorship does a regiem punish success, and use the excuse that it's for the benefit of the collective rather then the individual. Look no further then the FED devaluing the dollar which is pegged to the price of oil to see the reason why $4.00 gas is here. When the dollar goes down, oil prices (and gas) go up.. Speculators accept risk, and are rewarded for that risk, sometimes they win, sometimes they loose money.. But don't blame them for the gas prices.

    10. Pingback: PA Pundits - International

    11. Art Wilson (North Ca says:

      Obama gives new meaning to the adage "what you do speaks so loudly I cannot hear what you say". The White House "infographic" is just another example of outright lying by partial truths out of text or lies by omission of known facts. One must learn to ignore what Obama or one of his stooges say about anything………watch what they do.

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