Inflate your tires, America, and learn to love Euro-priced gasoline. DOE chief Stephen Chu tells the truth to Congress:
“We agree there is great suffering when the price of gasoline increases in the United States, and so we are very concerned about this,” said Chu, speaking to the House Appropriations energy and water subcommittee. “As I have repeatedly said, in the Department of Energy, what we’re trying to do is diversify our energy supply for transportation so that we have cost-effective means.”See HotAir and Heritage:
Chu specifically cited a reported breakthrough announced Monday by Envia Systems, which received funding from DOE’s ARPA-E, that could help slash the price of electric vehicle batteries.
He also touted natural gas as “great” and said DOE is researching how to reduce the cost of compressed natural gas tanks for vehicles.
High gasoline prices will make research into such alternatives more urgent, Chu said.
“But is the overall goal to get our price” of gasoline down, asked Nunnelee.
“No, the overall goal is to decrease our dependency on oil, to build and strengthen our economy,” Chu replied. “We think that if you consider all these energy policies, including energy efficiency, we think that we can go a long way to becoming less dependent on oil and [diversifying] our supply and we’ll help the American economy and the American consumers.”
Meanwhile, the Obama Administration is seemingly doing everything it can to make paying for energy even more painful by refusing to open access to the country’s oil and gas reserves and blocking new projects that would lead to the development of more energy in America. Case in point: the president’s decision to say “no” to the Keystone XL pipeline, a project that would have delivered hundreds of thousands of barrels of oil from Canada to Texas refineries, while bringing thousands of jobs along with it.Gasoline in my neighborhood in northern Virginia has gone up to $3.83 a gallon, a 4 cent rise since the day before yesterday.
Sensing impending political fallout from the high cost of gas, President Obama last week spoke on the subject and attempted to deflect blame for the pain. He said that there is no quick fix to high gas prices and the nation cannot drill its way out of the problem, but as Heritage’s Nicolas Loris writes, the president ignored reality and dished out a series of half-truths. Among them, the president claimed oil production is its highest in eight years, that increasing oil production takes too long, and that oil is not enough. Loris writes that while production is up on private lands, unrealized production on federal lands and offshore could have yielded even more output, increasing supply and driving down costs. If the president had said “yes” to Keystone, oil could have reach the market quickly. And as for the president’s push for alternative energy, those sources simply cannot stand the test of the market.
There are steps the president and Congress can and should take today to bring down the cost of energy. Namely, end the de facto moratorium on drilling, open offshore areas that are off-limits to drilling, place a 270-day limit on environmental reviews for energy projects on federal lands, remove regulatory delays, and approve Keystone.
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The fact of the matter is that presidents cannot lower gas prices.
ReplyDeleteWhat they can do, however, is not allow them to increase by their actions.
Which the Heritage Foundation so aptly pointed out.
If that 2% decrease in FICA taxes is such a stimulant to the economy imagine what a reduction in federal fuel taxes could do. On its face it would seem to reduce federal revenues so the "do gooders" would oppose it. But doesn't the 2% FICA reduction reduce federal revenues? A reduction in federal fuel taxes would affect a much larger portion of the the population than the portion lucky enough to be employed at wages rates that trigger withholdings.
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