Gasoline continues fueling politics

WASHINGTON — Record gasoline prices for February — including a dime-a-gallon increase this week — continue to fuel a high-octane election-year fight for political position and an inside track in the ongoing debate over energy policy.

A gallon of regular averaged $3.65 nationwide Friday, AAA reported, up from $3.53 a week earlier.            Oil interests see that as a chance to push harder for more domestic energy development.

And Republicans have quickly taken it up as an issue to use against President Barack Obama, though most analysts say presidents have virtually no control over rising costs at the pump.

“This debate is a debate we want to have,” House Speaker John Boehner, R-Ohio, told a closed-door GOP meeting. “Certainly this summer will see the highest gas prices in years.”

Obama’s plan

Obama argued Thursday that no short-term fixes exist but that his “all-of-the-above” energy strategy, outlined in his State of the Union address, stands the best chance in the long haul of insulating the U.S. from gasoline-price spikes.

“That’s the only real solution to this challenge,” Obama said.

On the gasoline production and conservation side, he touted plans to make available 75 percent of the nation’s  potentially recoverable offshore oil and gas resources in the Gulf of Mexico and Arctic Ocean and rules doubling passenger car mileage standards by model-year 2025.

As to renewables, he cited the administration’s goal of approving construction of 10 gigawatts of wind and other renewable energy projects this year.

Obama has noted that U.S. oil-and-gas output has risen under his watch, that net imports have fallen and that his administration already has leased millions of acres for drilling.

GOP response

Industry leaders and their GOP allies have responded that the rising production stems from state and private lands that the federal government largely doesn’t control, and that Obama’s policies have hurt development of federal lands and waters.

American Petroleum Institute President Jack Gerard complained that the administration hasn’t opened waters outside the Gulf and Arctic to drilling; has imposed offshore regulations that raise costs and slow permit approvals; delayed approval of the Keystone XL oil pipeline that would carry Canadian tar sands crude to refineries on the Gulf Coast of Texas; and proposes “discriminatory” elimination of some oil industry tax breaks.

House Republicans approved a bill this month that would allow drilling in parts of the Pacific and Atlantic oceans and would approve Keystone XL. Environmentalists and Democratic allies say the measure — which is unlikely to pass the Democrat-controlled Senate — would be environmentally destructive.

Amy Myers Jaffe, fellow with Rice University’s Baker Institute for Public Policy, said polling shows gasoline prices heavily sway public sentiment.

That may explain why politicians on both sides are again using them as further fodder. But political experts are not certain how the posturing on price will play out.

“Unless the economy really turns south, I don’t think it’s going to make too big an impact,” said Thomas Whalen, a professor at Boston University. “But it can’t help President Obama,”

Average price Friday for a gallon of regular:

– U.S.: $3.65
– Texas: $3.53
– Houston: $3.51

6 Comments

  1. Energy Tyrant

    BUY A CHEVROLET VOLT!!! START DRIVING WITHOUT GASOLINE!!!

    TRIPS LESS THAN 40 MILES TOTALLY ON BATTERY!!!

    NEED TO GO FARTHER? THE GAS ENGINE KICKS ON AFTER THAT!!!

    No, I don’t work for, or own stock in General Motors.

    But the answer for this is simple. END the massive demand for oil by driving electric cars.

    Don’t like the Volt? Buy a Nissan Leaf. It’s totally electric.

    Ford’s is about to offer an electric Ford Fusion too, I believe.

    #1
  2. dsl987

    Drilling for oil here and finding more, even a lot more, just ensures that we will have access to oil and gas, it will not bring the price of gas down.

    #2
  3. Mike H.

    Here’s another idea to think about:

    http://abcnews.go.com/GMA/video/gma-deals-steals-home-decor-improvement-15774273?tab=9482931&section=1206834&playlist=1363932

    Also, there was no price drop here in the US when the Alaskan Pipeline came online. So, I’m dubious that Keystone XL will reduce US fuel prices.

    #3
  4. dsl987

    Correct – it will not lower prices, but unlike the oil embargoes of the 70′s we will still have gasoline, it will just be expensive.

    #4
  5. RedHerring

    Mike H. -
    It won’t, and TransCanada isn’t even pretending that it will. The only people saying that are shills and politicians. The whole point of the pipeline is to get tar sands crude access to more lucrative markets abroad. The likely effect will be more expensive diesel in the upper Midwest for farmers and truckers, since the Canadians will no longer be forced to sell it in that constrained market.

    #5
  6. SportBilly

    Energy Tyrant – where do you suppose the electricity comes from to recharge your Volt (please don’t say from the outlet on your garage wall)? Most likely it comes from a coal or natural gas fired power plant you Dolt! What are the materials used in the Volt or Leaf made of? You can bet most of it comes from the petrochemical industry (plastics, etc.). You can not escape the O&G and coal/metals mining industries w/ your magical GM Volt. When will you idiots realize this? Almost every product you use on a daily basis can be tied back to the petroleum/mining industries – if you like your current lifestyle then get on board and stop living in denial.

    #6