• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Correcting the Record: Five Half-Truths From Obama on Higher Gas Prices

    During a speech on gas prices Thursday in Miami, the President tried to dodge responsibility for the pain Americans are feeling at the pump. Recognizing the trouble these higher prices are causing Americans, the President tried hard to demonstrate his concern over higher prices.

    But as the video above shows, the President and his Administration have repeatedly stated that they want higher energy prices. They want to use the pressure of higher energy costs as an excuse to force their green energy boondoggle on Americans.

    In a new report, Heritage’s Nick Loris breaks down five half-truths in the President’s speech:

    Half-truth #1: Oil production is the highest it has been in eight years. The increased production of oil and gas in the U.S. is largely a product of increased production on private land. The Administration could have encouraged much bigger gains by providing access to federal land.

    Half-truth #2: Increasing oil production takes too long and would not impact the market for at least a decade. The sooner we make investments in domestic energy, the sooner those benefits will be realized. And with some serious reforms, some of this oil can reach the market in much less than a decade.

    Half-truth #3: Oil is not enough. America has only 2 percent of the world’s oil reserves. President Obama frequently uses this number to push federal investments in alternative sources of energy that cannot stand the test of the market. The reality is that he uses this number deceptively.

    Half-truth #4: Oil is not enough. The country needs an “all-of-the-above” approach to reduce its dependence on oil. While a familiar refrain from the President, it is a line that too often translates into wasteful subsidies for pet energy projects. A market-based strategy is the only all-of-the-above approach.

    Half-truth #5: Speculators are driving up the price of gas, and they need to be reined in. While the President tries to blame the market, he ignores the power of supply and demand. By removing roadblocks to domestic energy production, the President can ensure that there is a healthy supply of American energy on the market, keeping prices competitive.

    In addition, Loris lays out five things that Congress and the Administration could be doing to keep prices low.


    • Get moving on permits
    • Require lease sales when ready
    • Create a sensible review process
    • Remove regulatory delays and limit litigation
    • Approve the Keystone XL Pipeline



    Read the full report for more excellent analysis.

    Click here to view the Spanish version of this video at Libertad.org.

    Posted in Featured [slideshow_deploy]

    16 Responses to Correcting the Record: Five Half-Truths From Obama on Higher Gas Prices

    1. stew says:

      Did anybody see the Cramer mad_money story with EOG Pres?
      Forty some odd dollars a barrel is what it cost the co. to pull oil from the ground.
      Profit in high oil price world today? About 150%
      No wonder they are shipping the product we did not use in our warm weather winter overseas…follow the money…big oil should be supporting our welfare programs…and more.
      Saudis pump oil at under a dollar a gallon…world oil price stop their big oil from supporting their citizenry? Nope.

      • Stirling says:

        "big oil should be supporting our welfare programs"… wow, now that sounds socialist to me…

        I did see the story on mad money, but I really take offense to the implication that a publicly traded company shouldnt have the right to do as it sees fit to do with its resources (good or bad). You get on a real slippery slope when you constantly inject government hands into the market to manipulate. It may temporarily work, but also disensetivises those affected in the future. Look at the result of the moritorium last year, we lost many deep water rigs that will never come back to the US to provide jobs and oil to the gulf region.. Let the market pick winners and loosers, not government political hacks that bend to special intrests.

        • Joseph Bocek says:

          Stirling why not just charge Big oil MORE to drill on public lands?? "public federal" use the tern you would like they are the countries resources not just the guy that drills for it. That may squeeze margins a bit but big deal they make enough off us already.

    2. Billiam says:

      For almost 40 years they've been pushing the line "It'll be 10 years before it comes to market." with regards to domestic drilling. As anyone with half a brain, a number that is apparently declining, knows, had they started drilling at any time between the late 70's and early 90's, we'd have our own supply. We have more than enough for the U.S. This would allow us to look for other sources without cutting our own throats while we do. also, it's not just the Democrats that are stupid on this. There are plenty of Republicans for them to stand with. Also, this is what Obama wants. He stated as a candidate that "under my policies, energy prices would NECESSARILY skyrocket." Hello!

    3. @skohayes says:

      The Keystone pipeline (Phase 1) is already built and the oil is refined into gasoline and sold in the Midwest. The Phase 2 and 3 parts would move the oil to Texas to be refined and sold on the world market. How will this impact gas prices in the US? By causing midwest prices to rise by 10-15 cents per gallon (Midwest refineries would have to pay a premium to have the oil shunted to Illinois for refining in KS and OK).

    4. LibertyAtStake says:

      #1 is feckless, #2 defeatist, #3 disingenuous, #4 dissembling, and #5 class warfare.

      Nice character profile of BHO and His Corrupt Gang of Progressives.

      d(^_^)b http://libertyatstake.blogspot.com/
      “Because the Only Good Progressive is a Failed Progressive”

    5. Jeff, Illinois says:

      Part A
      Please stop the propaganda about gas prices . . the president is not responsible!
      Half truths about the so-called half-truths:
      1)Oil production is the highest it's been in eight years . . It's not a half-truth if how such a metric is measured is TRUE! Preceding presidents could have made federal land available as well . . The metric is the metric. Conclusion: "Oil production is the highest it's been in eight years."

      • Jeff, Illinois says:

        Part B
        Half truths about the half truths:
        2) Increasing oil production takes too long and would not impact the market for at least a decade. . .
        . . . with some serious reforms, some of this oil can reach the market in much less than a decade.
        The point is a decade or less than a decade is NOT this summer and NOT going to affect gas prices NOW. We have been drilling more than ever . . so stop this distorted talking point!

      • Jeff, Illinois says:

        Part C
        Half truths about half truths
        3)Oil is not enough. . . The reality is that he uses this number deceptively . . . .
        There's nothing deceptive about the reality that long term oil is not enough . . Look at what Germany has accomplished with alternative energy sources . . Why are we behind in progressive thinking? Because the oil company's run our politics ((PERIOD))

      • Jeff, Illinois says:

        Part D
        Half truths about the half truths
        4)Oil is not enough . . . The country needs an “all-of-the-above” approach to reduce its dependence on oil . . If a market base strategy is the only all-of-the-above approach . . then why does the GOP consistently lobby to extend the 3.9 Billion subsidy to the oil industry every year. IT'S VERY OBVIOUS, what's really going on!

        • Bobbie says:

          oh brother, narrow mind. how long have you lived in America? Or do you? so what you're saying is the President is bias for oil companies which I agree but they aren't domestic ones!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! where's your rhetoric really going? If we are in a market based strategy controlled by the market, there'd be no such thing as government subsidies!!!! Think Mr. Jeff, think. You can do it.

    6. Jeff, Illinois says:

      Last Part
      Half truths about the half truths
      5)Speculators are driving up the price of gas, and they need to be reined in . . While the President tries to blame the market, he ignores the power of supply and demand. The demand is the lowest it's been in years! Even the Oil Company leaders a few years ago admitted in a congressional hearing that SPECULATION was responsible for a large part of gasoline price increases. Common-sense tells us that unrestrained speculation without requirements on product delivery will inevitably cause gasoline prices to increase.

    7. @Pundit_Pete says:

      Our Bridge to Nowhere Tea Party is placing this issue before the public in a unique way – by posting messages on a bridge. We have a local (Littleton, CO) pedestrian bridge that cost $3 and is monument to government waste. But we like to use it as a giant billboard for posting our messages. Last week's message was:
      Check out the story and videos at Pundit Pete. http://www.punditpete.blogspot.com/2012/02/tea-pa
      We will have any even better message and location on March 3, so check back then at Pundit Pete.
      Thanks Heritage for keeping us fueled up with information for our messages.

    8. @TAMPA_M says:

      Our oil dependence from foreign Nations has gone from 58% in 2008 to 45% in 2011.
      Obama must be doing sometrhing right despite what they say.

    9. @TAMPA_M says:

      Our drilling and oil production is up over 60% over the past three years, and you can bet the Republicans sure won't tell you that, and they are fully aware of the facts. I don't know why they want to push that subject of fuel prices, they will obviously lose.
      If anything the Koch brothers and others in the energy industry should be hoisting Obama up on their shoulders and parading him around, but the only reason they won't do that is because he's not white and does not have a R behind his name…..

    10. Stirling says:

      This administration (and the liberal media) has been giving us 1/2 truths for the entire time, thus it's clear that they can not tell the whole truth for fear of the public turning on them, and their agenda. Anyone who objectively looks at the facts (like this article), can see the hidden "green agenda" to raise gas prices pushing people off the use of oil. Most of these "green agenda" items have already been tried in Europe, and have failed financially, and wrecked economies that previously had stable workforces.. Spain (lost 2.5 real jobs for every 1 green job created) now has 20% unemployment for example.. Lastly I take offense to the relentless push of the envirometalists to assume that it has to be "their way or the highway" (no middle ground), please realize that this country is not a "One size fits all" no freedom populace.. Your zellot addtiction comes off as arogant and offensive to think that you know whats best for me mentality..

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.