Posted on 04/24/2006 4:59:57 AM PDT by FerdieMurphy
SAN JOSE -- As oil prices hit a record, drivers worried about $3-a-gallon gas and politicians feared the impact on elections, President Bush on Friday acknowledged the pain but seemed resigned to being able to do little about it.
"I know the folks here are suffering at the gas pump," the president said while promoting his competitiveness initiative at the Silicon Valley headquarters of Internet networking company Cisco Systems Inc. "Rising gasoline prices is like taking a _ is like a tax, particularly on the working people and the small-business people."
But to address the immediate problem, Bush offered only a pledge that "if we find any price gouging it will be dealt with firmly."
Bush said that lowering America's dependance on foreign oil imports will help reduce the country's vulnerability to global oil price fluctuations. On Saturday, the president was pushing his proposals to boost spending to develop alternative energy sources, particularly hydrogen-fueled cars.
Critics say Bush's ideas are too modest and focus on solutions that are far from being a reality in the marketplace.
Crude-oil prices broke through $75 a barrel Friday amid concerns about the standoff over Iran's nuclear ambitions, rebel disruptions of oil production in Nigeria, and tight U.S. gasoline supplies. Analysts say they are likely to climb even higher.
Prices at the gas pump also kept rising and were not considered at their peak, with the average price of a gallon of unleaded regular gasoline at $2.855. That's 3 cents higher than a day earlier and more than 60 cents higher than a year ago, according to AAA's daily fuel gauge report.
Democratic efforts to score political points by focusing on gas prices have Republicans worried that their majority in Congress could be at risk in the fall midterm elections.
High gas prices were hardly the only problem facing Bush's White House as he embarked on a four-day swing to California and Las Vegas. He was traveling with new chief of staff Joshua Bolten, charged with reinvigorating a White House rocked by public discontent with the Iraq war and a series of missteps ranging from an ill-fated Supreme Court nomination to a bungled response to Hurricane Katrina.
Bush's poll ratings are at their lowest point. Hundreds of protesters called for his resignation near the Cisco compound where he spoke.
Even his trip put the president squarely in the middle of a federal-state dustup.
Bush decided not to grant the pre-emptive federal disaster declaration sought for California's fragile levees by Gov. Arnold Schwarzenegger, a Republican who faces a tough re-election fight and has had a chilly relationship with Bush. Instead, the president is allowing the U.S. Army Corps of Engineers to help speed repairs at the state's expense.
Bush seemed aware of the precarious political landscape.
When Bush turned the microphone at Cisco over to Schwarzenegger, the governor said, "First of all, I want to say congratulations."
"For what?" asked the president, appearing genuinely surprised.
The governor, who had discussed the levee issue during a limousine ride with Bush, replied that he was glad to see the president "really paying attention" to the competitiveness issue.
Afterward, Bush talked privately with scholars from Stanford University's Hoover Institution, including former Secretary of State George P. Shultz, a Hoover fellow and early defender of the use of pre-emptive force to deal with Saddam Hussein's regime in Iraq.
Plans to hold the meeting at the Hoover Institution were scuttled when protesters blocked Bush's motorcade from going through the only entrance. Shultz, who was already hosting a private dinner for Bush later at his Palo Alto home, had the session moved to his two-story, gray-shingled house.
One reason for a weekend trip with a lot of downtime in beautiful places became clear even before Bush boarded Air Force One to leave Washington. Crew were seen loading two shiny mountain bikes _ one a red-white-and-blue Trek adorned with the presidential seal and "United States of America." With stays scheduled in picturesque Napa Valley and the Palm Springs area, the bikes weren't likely to remain clean for long.
"Tomorrow I'm going to be riding my bike in Napa Valley. I can't wait," Bush told his Cisco audience.
Before returning to Washington Monday night, Bush was making stops to raise money for the national Republican Party, visit with Marines and Navy sailors, and press Congress to break a logjam over the immigration legislation he wants.
I was responding to your comment, "Then candidate Bush said he would call his friends the Saudi's to turn the taps on." and asked for the source. I also said that Bush has jawboned the Saudis and OPEC. The operative word is "jawboned." Our options are limited even for "the most powerful man in the world."
And while after the meetin in Texas, the drop in prices was short lived.
Yes, market forces have a way of doing that. The price of oil will go down again from its present high. The more expensive it becomes, the less people will use. As demand goes down, so will the price. When demand increases because of the cheaper price, the price will go up again. It is part of the market cycle. Unfortunately, world demand is increasing from new requirements originating from the growing economies and affluence of China and India. Supply is having a hard time keeping up with this new demand.
If. And if that is the case, then that would suggest that the President and others are using this issue and the American public as a game pieces. Which would really suck. : )
Long term contracts for fuel delivery existed LONG LONG LONG before the energy futures market in the US... Futures market manipulation and profiteering is what's driving up oil... just like it did tech stocks in late 90s.... Pure and simple.
I think you're on the right track.
If W would go on TV, and speak directly to the American people on this issue and this issue only, with a comprehenisve plan - pretty much what you've laid out, it would put the Rats on the defensive.
Problem is, it needs to be simple, comprehensive, and balanced so that the public and the investment community can both plan down the road four to five years.
The legislation should be a couple of sheets of paper - not a couple of books.
I'm normally opposed to the CAFE standards being increased, but if it was part of a comprehensive plan and the increase was limited to what is actually achievable by technology without compromising safety, I might change my mind.
Couple that with Tony Snow as press secretary to get the President's message out, and it might even work.
If we had a reasonable plan out there, it would also dampen the speculation in the oil futures markets.
Idiotic idea. This would just guarantee that there would be serious shortages. Suppose you're a gas producer and your production costs are $2/gal and the fedgov puts a cap on it at $2.50; however, China pays $3.00 what will you do? Sell to China of course.
I have been a conservative for tooooo long. I don't read Gore's books nor do I put much thought into what Gore says like you obviouosly do.
HW Bush said it whether you like it or not. End of conversation with you.
Yeah... there's all those problems with the economy, with jobs, the market... dang things just suck. Maybe some more bellyachin' will help.
"Can't there be a federa cap on gas prices?
Idiotic idea. This would just guarantee that there would be serious shortages. Suppose you're a gas producer and your production costs are $2/gal and the fedgov puts a cap on it at $2.50; however, China pays $3.00 what will you do? Sell to China of course"
Not so idiotic in theory. Once an "affordable" price was determined (say $2.50 for regular), then a Price Management and Distribution Bureau could be set up under the Dept. of Energy. It's job would be.
a. Make sure gas prices are not raised above the cap.
b. Establish octane standards to make sure evasion of price caps does not occur.
c. Establish a number of distribution bureaus in each state to make sure that "market information" is maintained, so that no location is running short of gasoline, thus maintaining an even supply and easing any "gas lines" and spot shortages that might otherwise occur.
For example, the state of Pennsylvania might have a bureau in the northeast (Poconos); southeast (Philly area); south central (Harrisburg, Lancaster); southwest (Pittsburgh); and northwest (Erie). Each bureau would keep track of gasoline supplies in its area to maintain an adequate supply.
Shrugging ones shoulders is NO EXCUSE for a concentrated attack on the Demon-crap's continued blockage of any and all Energy legislation.
This Administration's communication skills are virtually ZERO.
Yep. The fix is in. Bush, Clinton, Bush, and soon...Clinton again.
In the end, it really does not matter. Whatever money people make in the market is being eaten by higher fuel, higher local taxes, etc etc.
Were it not for the WOT, the WH would probably have 10% approval. Its unbelievable in this day and age how inept this WH is.
A good analogy is the Cold War. Although we never really had a star wars program that was functional and capable of doing what people thought, the perception was that we were willing to do anything whatsoever to defeat our enemy and gain victory.
Do you see that here, on almost anything? No. We get excuses and denial on everything. Blame the MSM, blame the RATS, blame the RINO's, whatever.
Lead and people will follow. We have a do nothing presidency and do nothing Senate. The House is doing their part.
Elian Gonzalez, smoking bans...but to dare mess with Kalifornia's and other states' legislation or practices that strangle the supply of petorleum? Well that's just out of the question!
"and the oil companies make about 9 cents per gallon"
That is right up there with the Easter Bunny.
"or force companies to sell gasoline at a loss"
Think of that as a temporary "tax" until the oil markets settle. But they really wouldn't be selling at a loss. We all know that.
Where's the bandwagon for the THIRD political party with a platform that truly means the salvage of the American republic?
Yeah, just let the middle-east and the enviro wackos call the shots. Pretty soon, we'll all be eating crackers and beans (not an illegal immigration barb, I swear) to pay for gas. Oh, except for Babs, Teddy, Horhay Clooney and the 'TOons.
We're on the road to surfdom alright!
Thanks.
Is that $20 a hard figure? I remember reading that it only cost the Saudis $2-$3/barrel in extraction costs at the time.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.