President Barack Obama outlined a plan Wednesday to cut America's imports of foreign oil by a third by 2025 -- a response to growing global energy demands and instability overseas.
The president's proposal relies primarily on increased domestic production, conservation and a shift to biofuels and natural gas.
Among other things, Obama said he will push for an increased use of natural gas in trucks and buses as well as the construction of commercial-scale biofuel refineries over the next two years.
The president also announced that he is directing the federal government to ensure that all its vehicle purchases are alternative fuel, hybrid or electric cars by 2015.
Higher fuel efficiency standards for cars will be announced this fall, he said. This summer, a new fuel efficiency standard will be proposed for heavy-duty trucks, he added.
The White House previously announced a decision to raise fuel efficiency standards for automobiles at a faster pace than required under the 2007 energy act -- boosting them to 36 mpg by 2016.
Senate Minority Leader Mitch McConnell, R-Kentucky, fired back, arguing that Obama "is telling people what he thinks they want to hear."
"Over the past two years the administration has taken what can only be described as a war on American energy," he said. "It's canceled dozens of drilling leases, it's declared a moratorium on drilling off the Gulf Coast (and) increased permit fees. ... In short, it's done just about everything it can to keep our energy sector from growing."
"Tell a Democrat in Washington that gas prices are too high and as if on cue ... they will take you on a tour of some alternative car plant that promises to have one of its $100,000 prototypes to market 25 years down the road," he said.
Sen. John Cornyn, R-Texas, released a statement arguing that "the American people need action from President Obama, not another lecture, especially as skyrocketing gas prices are crippling middle-class families and small businesses."
Obama's policies "have exacerbated the economic pain Americans are feeling at the pump," Cornyn argued. "It is time for the president to recognize the damage his policies are having on the economy, take his boot off the neck of domestic energy producers and unlock our domestic energy potential."
They aren't slowing down any time soon from getting to a near all time high from back in 2008! Something has to be done and done soon before the economy gets hit worse than it already is from these high prices.
Gas prices have jumped nearly 20 cents over the past two weeks, approaching the all-time high, according to a survey published Sunday.
The average price of a gallon of self-serve regular is $3.76, the Lundberg Survey found. The previous survey three weeks ago found an average of $3.57.
That means prices are now just 35 cents -- "within firing range" -- of the all-time high of $4.11 set in July 2008, said publisher Trilby Lundberg.
"This doesn't mean that we will get there," she said. "Crude oil will decide."
Crude prices have been impacted by the unrest in the Middle East, she said, but also by two other major underlying factors: increased demand in developing nations and the weak dollar.
"Unless crude oil relents and slips, we can expect a further rise at the pump because pump prices do not reflect all of the crude oil price hikes that have occurred," Lundberg said.
The latest Lundberg survey, which tabulates prices at thousands of gas stations nationwide, took place on Friday. Of the cities surveyed that day, the lowest average price was in Tucson, Arizona, at $3.41. The highest average price was in the San Francisco Bay area at $4.13.
Sava700 wrote:They aren't slowing down any time soon from getting to a near all time high from back in 2008! Something has to be done and done soon before the economy gets hit worse than it already is from these high prices.
Get ready. It's about to become the New World Order. Just a few more things they have to raise to screw us totally.
And all this time you thought your lived in the United States of America. It's quickly becoming the Socialists states of America with a few states threatening to leave the union.
Success is a lousy teacher. It seduces people into thinking they can't lose. -Bill Gates
It's killing me. I just had my hours changed to days (about 1 month ago) and I use about 2/3rds more than usual in stop and go traffic. It's taking a big bite out of our budget here.
Easto wrote:It's killing me. I just had my hours changed to days (about 1 month ago) and I use about 2/3rds more than usual in stop and go traffic. It's taking a big bite out of our budget here.
Just a start, the economy can't recover with gas prices the way they are now. Recovery started when they dropped to around $2/gallon average and was neutral now it's dropping fast!
Sad to see so many excuses come up now.. mostly Libya with only a fraction of oil being lost and we are still producing more daily than we are using. Now they are using the "Switching to Summer blends" excuse when they don't lose hardly any production. Talking to alot of people on fixed incomes they can't sustain it considering many places haven't givin a raise in over 3 years.
In just the past few weeks, prices have shot up by 12 cents per gallon in California ($4.14 per gallon), 12 cents in New Jersey ($3.56 per gallon), and a whopping 23 cents in Oklahoma ($3.62). The national average is now $3.74 per gallon, according to AAA.
The bad news is, there is no good news. With no end to the unrest in the Middle East in sight, prices are expected to keep rising. Experts say the average cost of gas could exceed 2008's all-time record of $4.11 cents.
The current spike started back in February when the rebellion in Libya's oil fields put a stop to the country's daily exports of 1.5 million barrels of crude. That has caused oil speculators to push up the price. At the same time, here at home, refineries are switching to their summer blend, which also increases the cost.
Paradoxically, as the overall U.S. economy improves, that further increases the demand for gas, which puts even more upward pressure on prices at the pump. So any which way you look, be prepared to pay more to fill up.
With oil already up 20 percent this year, economists are asking how long it will take before it puts the breaks on the recovery.
If you're looking for the cheapest gas in the country, you'll have to drive all the way to Wyoming, the only state where gas still averages under $3.50 a gallon.
The national average, now $3.79 per gallon, is just 32 cents away from the all-time high set in July 2008. Prices have been driven up by the global economic recovery, record speculation and unrest in the Middle East.
John Kingston of Platt's says supplies have been strained by the civil war in Libya.
"You've lost 1.3 million barrels a day of the world's best crude in Libya. You have to account for that somewhere," Kingston said.
As oil prices have climbed back to $110 a barrel, it poses a growing threat to the economy. Ellen Zentner, an economist with the Bank of Tokyo - Mitsubishi, said high gas prices could almost certainly take some of the momentum of the recent economic recovery.
"Economists have already marked down some of their growth forecasts for the first quarter of consumer spending," Zentner said.
Zentner says gas and food inflation are eroding Americans' paychecks.
"If we adjust wages for inflation, they not only declined month to month in March, they're declining on a year-over-year basis," Zentner said.
The American consumer drives two-thirds of the economy. So far, spending at retail stores is holding up. It rose again more than 2 percent in March, but spending on gasoline has been falling, down 3.6 percent in the past week, its fifth-straight weekly decline.
Well you have to admit, the plan to destroy this countries economy is doing very well.
At this rate, fuel will be $5.00 a gallon by Memorial day and still, no one is even attempting to end this speculation madness.
Some think I'm nuts. That's fine, but look at the facts. Supply is high, demand is low and imported oil accounts for very little of our supply. There is no need to resort to the reserves. The speculation and Wall St need to be throttled.
Success is a lousy teacher. It seduces people into thinking they can't lose. -Bill Gates
blebs wrote:Well you have to admit, the plan to destroy this countries economy is doing very well.
At this rate, fuel will be $5.00 a gallon by Memorial day and still, no one is even attempting to end this speculation madness.
Some think I'm nuts. That's fine, but look at the facts. Supply is high, demand is low and imported oil accounts for very little of our supply. There is no need to resort to the reserves. The speculation and Wall St need to be throttled.
Exactly!! The national news said that even investors are pointing out that out of control speculation has the price about $25 more per barrel than what it would normally be this time of year with all other factors.
Gas prices have been spiking for weeks and $4 gas is quickly becoming a reality across the nation.
Illinois became the latest state to succumb, with motorist group AAA reporting Tuesday that the average price for a gallon of gas in the state had hit $4.03 a gallon.
There are now four U.S. states with gas prices above what many economists consider a 'tipping point' for consumers. Prices in California, Alaska and Hawaii have been above $4 a gallon for weeks.
As of Tuesday, the national average stood at $3.79 a gallon. While that's still below the $4 mark, prices are up 23% from the start of the year.
A big culprit behind the surge has been oil. While gas prices typically start to rise at this time of year, $100 oil isn't helping.
Based on current oil prices, there is a 33% chance that the national average gas price could hit $4 a gallon in July, said the Energy Information Administration in its April short-term energy outlook.
But the EIA isn't ringing the $4 panic bell just yet, calling for gas prices to average $3.86 a gallon this summer. That would still translate into a whopping 40% rise from last summer.
Prices haven't averaged $4 a gallon nationwide since July 2008. But many economists are already predicting the national average will top that level during the peak driving months from April to August.
"Prices are most likely going to hit $4 per gallon this summer," said Chris Christopher, senior economist at IHS Global Insight.
That's bad news for consumers, who have spent the last few years paying down debt but are still hamstrung by the weak job market and falling home prices. It's also alarming because consumer spending is the main driver of economic activity in the United States, said Christopher.
"Consumers are not in a very good position right now coming out of a deep recession," he said. "We're trying to get traction here with this anemic recovery, and rising gas prices are the last thing the American consumer needs."
IHS Global recently estimated that a sustained $10 increase in oil prices, which corresponds to a 25 cent rise in gas prices, could drive consumers' energy bills $25 billion higher this year. That could have a jarring ripple effect on the job market, with IHS estimating job losses of 270,000 as businesses look for ways to cope with higher input costs, the group estimated.
All of that combined could cut U.S. economic growth by 0.4% in 2011, according to the IHS study.
"There is definitely a substantial impact to headline growth," said Sam Bullard, a senior economist at Wells Fargo.
Bullard acknowledged that the job market has shown some signs of improvement this year, and that credit is easier to obtain for many households. But he described the rise in gas prices as a tax on Americans, which has largely negated the federal payroll tax holiday enacted late last year. To top of page
Until it starts to come down the Easto household is on fiscal alert. We're making good with what we have, saving a little and waiting for the prices to go down. There is no way I'm buying a new DSLR, CD Player or Guitar let alone a new car purchase we were looking at until things get back to normal.
I checked my credit card statement and we spent $366 last month in gas alone. And my wife is not working right now so she's not doing any daily long distance driving. So off the top of my head that's about $80 a month that we would normally be using to go out for dinner, buy a movie, maybe a new pair of shoes etc.
Ugg.. that's nuts! People around here having a hard time with 3.70 let alone $4/gallon. Something has to be done cause every story about it is showing it's taking a hit towards the economy.
The government reported Monday that gas is up another nickel in the past week, now selling for a nationwide average of $3.84 a gallon. In six states and the District of Columbia, the average price is over $4. And as Bill Whitaker reports, that's wreaking havoc on some family budgets.
LOS ANGELES - Gas prices, topping $4 a gallon in California, are forcing Dwain Griffith to make tough choices. A public school security guard, Griffith drives 60 miles most days and sees a direct correlation: gas prices go up, his purchasing power goes down.
A single dad, it hits him where it hurts most -- in his ability to give seven-year-old daughter Dallis life's little pleasures.
"It's heartbreaking," said Griffith. "I was unable to stop and get her ice cream. I had to make an excuse. 'We'll get it later.'"
It's not just her wants he can no longer afford, but also her needs.
"I used to be able to buy shoes, $25 shoes or whatever. I can't afford to do that now," said Griffith. "Try to be the man in your kid's life, he's supposed to be the hero and you are unable to do those things that you were normally able to do."
With prices rising about a penny a day last week, some 75 percent of Americans say they are now or soon will be pinching pennies. At these prices, the average American will pay about $750 more for gas this year, per car.
In Southern California, AAA reports a 13 percent jump in calls from motorists who've run out of gas.
"More people are trying to extend that gas tank a little farther. They don't want to go back to the gas station unless they have to," said AAA's Jeffrey Spring.
Up the coast in Central California, Kurt Cummerfeldt parked his Suburban and hopped on a bike, saving $200 a week on his 50 mile a day commute.
"It's a 42 gallon tank, so you do the math on that one," said Cummerfeldt. "I haven't filled it up in forever."
As for Dwain Griffith, he can't afford to completely fill his tank either. He's switched to cheaper regular grade instead of the recommended premium.
"My car is running bad now, because I'm putting in the wrong grade," said Griffith. "I hate it. I hate it."
And if prices keep rising, Griffith says he has doesn't know what other corners he can cut.
Getting beat up with high prices and the Govts best thing they can do now is make a group to watch for price gouging!?!? WTF!!!! Anything over $2/gallon is a rip off!! They need to fix speculation and fix it now!
Prodded by growing public frustration over sharply rising gasoline prices, the Justice Department on Thursday announced the formation of a team -- the "Oil and Gas Price Fraud Working Group -- tasked with the goal of ensuring consumers are not victims of price gouging.
Gas prices exceeding $4 per gallon or higher are "tough" for most Americans, President Barack Obama told an audience in Reno, Nevada. "We are going to make sure that no one is taking advantage of American consumers for their own short-term gain."
"This gas issue is serious," the president said. "It hurts."
Attorney General Eric Holder made no secret the move is a direct response to public angst, not to current evidence of any illegal conduct.
"Rapidly rising gasoline prices are pinching the pockets of consumers across the country," Holder said in a written statement released at the Justice Department.
6 dollars a gallon by end of summer is predicted.....AWESOME!
I remember filling up the tank on the Harley last fall, usually 8 to 9 bucks. A month or so ago, was 10 bucks. Yesterday I filled her up..12 bucks! This week filling up my Jeep (just a 16 gallon tank)...68 bucks.
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YeOldeStonecat wrote:6 dollars a gallon by end of summer is predicted.....AWESOME!
It won't hit that.. something will be done before long as it's slowing down the economy..if it stays over $3/gallon the economic recovery will suffer big time. It's really hurting those in office, someone has to be blamed and now it's Obama's turn.
Sava700 wrote: someone has to be blamed and now it's Obama's turn.
I bet you we'll be close. Real close.
He had his schpiel last night on the news, saying he'd be doing something...but it will be a while before we see the effects. Yeah...wait 6 months...prices will drop 3 cents a gallon...and he'll be a big deal out of it saying "look at how I helped you". LOL
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blebs wrote:I really feel sorry for the truckers. Just to fill my fuel oil tank was nearly $700, so filling a diesel tractor has to be almost $2000.
Ohh you can bet the prices are starting to pass along, last time the prices got this high truckers just stopped doing it cause they weren't making any money and they drove on the capital. Something needs to be done and soon before as the economy is starting to tank now!
Exxon earned nearly $11 billion in the first quarter, a performance likely to land it in the center of the national debate over high gasoline prices.
The world's largest publicly traded company on Thursday reported net income of $10.65 billion, or $2.14 per share, in the first three months of the year. That compares with $6.3 billion, or 1.33 per share a year ago. Revenue increased 26 percent to $114 billion.
"Wal-Mart's core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried. "We're seeing core consumers under a lot of pressure," Duke said at an event in New York. "There's no doubt that rising fuel prices are having an impact.
Sava700 wrote:Ohh you can bet the prices are starting to pass along, last time the prices got this high truckers just stopped doing it cause they weren't making any money and they drove on the capital. Something needs to be done and soon before as the economy is starting to tank now!
It's doing exactly what they want it to do.
Success is a lousy teacher. It seduces people into thinking they can't lose. -Bill Gates
After jumping more than 3 cents over the weekend, gas prices across America could top $4 a gallon this week, according to one industry analyst.
"We're going to hit $4 this week, nationally," said Tom Kloza, chief analyst at the Oil Price Information Service. "There's enough momentum to take us up there."
Something has to be done...we are almost to a all time high!!! The auto makers were losing money hand over fist when it was this high, laying off thousands and it's starting up again!! The economy can't sustain this type of increase in this short period of time.
I can't find place selling for less than $3.89/gallon, oil prices fell a good bit yesterday and were up and down today so they shouldn't climb higher but should end up dropping a little in the coming days!! I hope oil drops half of what it is and perhaps get back to where gas prices should be which is below $2/gallon!!
Attorney General Eric Holder says this week's drop in oil prices should put government investigators and regulators on alert for instances of fraud and manipulation that keep prices for consumers at the gasoline pump artificially high.
Holder issued his call Friday to be vigilant about "suspected illegal activity" to a government task force that recently was set up to investigate whether there are illicit forces behind the recent surge in gasoline and other energy prices.
The attorney general said in a memo that he realizes there will not be a perfect correlation between the decline in oil prices and the cost of a gallon of gasoline. But he said that if wholesale prices continue to decline, consumers also should pay less when they fill up.
Sava700 wrote:Ohh you can bet the prices are starting to pass along, last time the prices got this high truckers just stopped doing it cause they weren't making any money and they drove on the capital. Something needs to be done and soon before as the economy is starting to tank now!
That's very true.. because if gas still goes up in price, the next thing to go up is shipping costs, and then other companies will compensate by increasing their price on the products they sell. food, ECT.. A big downward spiral.
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