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Obama Energy Policy: President, GOP Plunge Into Politics Of Gas Prices

Obama Energy Policy

KEN THOMAS   03/21/12 09:45 PM ET  AP

MALJAMAR, N.M. — Wooing a nation of increasingly angry motorists, President Barack Obama and his Republican rivals are all plunging into gas-pump politics, seeking the upper hand as energy becomes a driving issue in the election campaign.

The president is defending his energy agenda this week, traveling Wednesday to a solar panel plant in Nevada and oil and gas fields in New Mexico and the site of a future oil pipeline in Oklahoma that the White House is promising to accelerate. At the same time, GOP opponents from front-runner Mitt Romney on down are vigorously accusing him of stifling domestic production and betting on foolhardy alternative energy methods over traditional oil drilling.

With gasoline reaching $3.86 a gallon in the U.S. and apparently heading higher, the public is impatient for Obama – or someone in his place – to do something about it.

In truth, a president has little direct control over gas prices, which have risen more than 50 cents a gallon since January in response to a standoff over Iran's nuclear program that has threatened to disrupt Middle East oil supplies.

Well aware of Republicans' criticism, Obama's advisers argue that voters take a sophisticated view toward energy and think about it as a problem demanding long-term answers. They know that talk about future solutions may not satisfy people as they endure high prices, but they're betting that voters will side with the candidate they trust the most to deal with the issue – and they're determined that that will be Obama.

"We're drilling all over the place," Obama said in Maljamar, N.M., in a field dotted with oil rigs.

Polls show less certainty about it all. One survey this month by CBS News and The New York Times found that 54 percent of Americans felt the price of gasoline was something a president could do a lot about while 36 percent said it was beyond his control. And a recent Washington Post/ABC poll found 50 percent thought the Obama administration could reasonably do something to bring down gas prices, while 45 percent felt the recent rapid rise has been beyond White House control.

Obama has repeatedly argued that drilling for new oil alone will not solve the nation's energy woes or reduce gas prices. He accuses Republicans of claiming they can "wave a magic wand" to return to the days of cheap gas, and on Wednesday, he mocked them for having a "lack of imagination" about alternative energy.

"You'd think that everybody would be supportive of solar power," Obama said from the Copper Mountain Solar 1 facility in Nevada, the largest plant of its kind in the country, with nearly 1 million solar panels. "And yet if some politicians had their way, there won't be any more public investment in solar energy. There won't be as many new jobs."

Obama carried three of the four states on this week's itinerary – Oklahoma is one of the safest Republican states in the nation – but all four elected Republican governors in 2010. Two of the governors, Brian Sandoval of Nevada and Susana Martinez of New Mexico, have been floated as potential vice presidential choices this year. Obama was making his first visit to Oklahoma as president

He has been hurt by his administration's decision to pump millions into California solar company Solyndra before it collapsed. And he's been repeatedly criticized by Republican presidential candidates for blocking the 1,700-mile Keystone XL pipeline, which would carry tar sands oil from western Canada to refineries along the Texas Gulf Coast.

The mere mention of Solyndra and Keystone generate instant reactions at Republican rallies.

Romney has blamed Obama for rising gasoline prices and urged the president to fire Energy Secretary Steven Chu, Interior Secretary Ken Salazar and Environmental Protection Agency Administrator Lisa Jackson, calling them the "gas hike trio."

Former House Speaker Newt Gingrich has adopted $2.50 gasoline as a central tenet of his struggling campaign, criticizing Obama for holding up the pipeline project and mocking him as "President Algae" for highlighting research into developing oil and gas from algae.

Former Pennsylvania Sen. Rick Santorum, meanwhile, regularly notes his grandfather's work as a coal miner. And he detoured his campaign to tour oil fields in North Dakota recently, labeling himself the only ardent supporter of oil drilling.

"Instead of paying two-digit dollars you're now paying three digits," Santorum said in Illinois. "When you see that zero come up, when it gets into the $100 range, when you see that zero, think of `O' for Obama because that's why you're paying that extra amount of money."

On Wednesday, Santorum campaigned at a company in Harvey, La., that services oil rigs in the Gulf of Mexico. He pressed the administration to open more federal lands for leases that he says would both generate revenue for the government and boost U.S. oil production.

"Here's an opportunity for us in this country to do something about it: increasing jobs, lowering energy prices, decreasing the deficit, all of the things you would think he president of the United States would be for," Santorum said.

In many ways, the issue has come full circle for the president. In 2008, candidate Obama criticized an inside-the-Beltway culture for the rise in gasoline prices. "So what have we got for all that experience? Gas that's approaching $4 a gallon. Because you can fight all you want inside of Washington, but unless you change the way it works you won't be able to make the changes America needs," Obama said at an Indianapolis gas station in April 2008.

Now he's the president.

From the sprawling solar plant in Nevada, Obama's motorcade kicked up dust as it traveled into an oil field in New Mexico, where he promoted increased drilling on federal lands.

On Thursday, Obama will use Cushing, Okla., as a backdrop to highlight the decision by Calgary-based TransCanada to build a portion of the Keystone pipeline from Oklahoma to Texas. The 485-mile line from Cushing to Port Arthur, Texas, doesn't require presidential approval because the pipeline does not cross a U.S. border.

The White House announced Wednesday that Obama plans to fast-track the pipeline.

Administration officials have said the Oklahoma-to-Texas line could address an oil bottleneck at a Cushing storage hub, but the argument may not fly in Oklahoma, where President George W. Bush and Sen. John McCain carried all 77 counties in the 2004 and 2008 presidential elections.

"It's a PR stunt and Oklahomans aren't buying it – the president is celebrating his failed energy policies in a community that will be hardest hit by them," said Rep. John Sullivan, R-Okla.

Obama wraps up his trip with a stop in Ohio, a key state in November, where he will discuss advanced energy research and development at Ohio State University.

Obama has few options to dramatically alter gas prices. Beyond green-lighting Keystone or opening up more oil drilling in Alaska or in the Gulf of Mexico, Justice Department officials could accelerate efforts to crack down on speculation in the oil markets, a move that the administration has discussed.

The White House could also tap the Strategic Petroleum Reserve, something it has said it would do only along with action by other countries. The U.S. released oil from its reserve last summer but saw little impact. Oil prices dropped nearly 5 percent when the government announced the release of 30 million barrels from the SPR on July 23, but prices quickly rebounded and oil ended the year higher than it started.

"Is there a lot that can be done in the short term that can have a huge impact? The answer to that is no," said William Galston, a senior fellow at the Brookings Institute and a former domestic policy adviser to President Bill Clinton. Yet he cautioned, "I don't think a posture of simply saying that and being the voice of responsibility in a rising political clamor is going to serve the White House politically well."

Republicans are trying to make sure of that. Ahead of the president's trip, the Republican-leaning super PAC Crossroads GPS was spending $650,000 on TV ads in Las Vegas, Albuquerque, N.M., and Columbus, Ohio, criticizing Obama's handling of energy policy and the Keystone XL pipeline.

___

Associated Press writers Jennifer Agiesta, Kasie Hunt, Steve Peoples, Brian Bakst and Jim Kuhnhenn contributed to this report.

___

Follow Ken Thomas on Twitter: http://www.twitter.com/AP_Ken_Thomas

Earlier on HuffPost:

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MALJAMAR, N.M. — Wooing a nation of increasingly angry motorists, President Barack Obama and his Republican rivals are all plunging into gas-pump politics, seeking the upper hand as energy becom...
MALJAMAR, N.M. — Wooing a nation of increasingly angry motorists, President Barack Obama and his Republican rivals are all plunging into gas-pump politics, seeking the upper hand as energy becom...
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05:22 AM on 05/17/2012
Higher gas prices are a new reality that must be faced by the American people. There is no technical fix to this problem until the competing factions on the issue begin to adapt and reconcile their values toward energy policy.

Please visit http://chriscrosby.net/blog/2012/03/16/americas-gas-pains/
02:49 PM on 05/16/2012
Now let's look at what happens when the US increases the supply of a fossil fuel. I'm talking about natural gas. The increase in our production caused an 80% REDUCTION in the price of this commodity. I'm not talking about something that happened years ago, I'm talking about something happening RIGHT NOW!

Now let's look at the unicorn 2% figure Barry likes to quote. Does anyone know how many barrels of oil was predicted during the Carter administration. Yep, it's that same idiotic figure that says we have just over 20 billion barrels of recoverable oil. Does anyone know how many barrels of oil we've pumped since then? OVER 86 BILLION BARRELS AND COUNTING.

Here's the estimates from Barry's own Energy Institute of America:

http://www.eia.gov/international/reserves.html

That's right, the government agency that is in charge of coming up with these numbers says there is over 200 billion barrels of recoverable oil. If you add in shale oil, that figures jumps to about 1.4 trillion barrels.

The koolaid is making idiots out of a very large block of the US.
02:26 PM on 03/31/2012
China and India are the driving force in rising energy prices. They are using more and more oil every day.
02:25 PM on 03/31/2012
Alternative energy sources are viable and investments in them are outpacing investments in the finite resources.

Electricity generated from wind power, solar energy, wave energy and biomass drew $187 billion last year compared with $157 billion for natural gas, oil and coal, according to Bloomberg. Storage technology for wind and solar is now coming online
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vetxcl
02:07 AM on 03/31/2012
Excerpt from a link I cited : "17 gigawatts of solar power were installed in 2010 . 17 gigawatts is equivalent to 17 nuclear power plants. It can take decades to make just one nuclear power plant. In over one year, 228 quadrillion dollars worth of ennergy strikes the Earth's surface from the Sun.' - "The Power of Solar Power, infographic," CleanTechnica.com, 10/26/11.
04:10 PM on 05/16/2012
Actually, it's about one modern nuclear power plant:

http://www.euronuclear.org/info/encyclopedia/n/nuclear-power-plant-world-wide.htm

If you average all of the US nuclear power plants, they generate just under 10GW per plant. Modern plants do better than that.

The bottom line is that solar will cost about 10-14 cents/KwH and nuclear will cost about 4 cents/KwH going forward.

So we spent over $700 million dollars and who knows how much in subsidies and we've created the equivalent of one nuclear power plant that will cost us 2-3 times as much for the same energy.

What was your economic argument again?

Now let's look at actually constructing the plants. Solar plants are comprised primarily of.......

That's right, SOLAR PANELS.

Who sells these panels?

That's right, the Chinese.

Since Barry's policy towards the Chinese is to continue kissing their A$$, it makes perfect sense to drive so much work overseas.

Does the koolaid prevent the drinker from doing any independent research?
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vetxcl
01:59 AM on 03/31/2012
A simple infographic to illustrate the potential of solar energy:

http://cleantechnica.com/2011/10/26/the-power-of-solar-power-infographic/
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HUFFPOST SUPER USER
Robert Lee Harrington
I'd Love To Change The World..
08:14 PM on 03/24/2012
SOLARRESERVE REACHES MAJOR CONSTRUCTION MILESTONE IN COMPLETING TOWER FOR WORLD’S LARGEST MOLTEN SALT SOLAR TOWER PLANT

Nevada project represents leading solar thermal technology worldwide – integrated energy storage provides predictable and zero-emissions electricity day or night to meet peak demands

SolarReserve, a U.S. developer of large-scale solar power projects, today announced completion of the 540-foot solar power tower for its 110 megawatt (MW) Crescent Dunes Solar Energy Plant located near Tonopah, Nev. Utilizing the most advanced solar thermal technology worldwide, the Crescent Dunes Plant will be the nation’s first commercial-scale solar power facility with fully integrated energy storage and the largest power plant of its kind in the world.

“Completion of the solar power tower is a significant milestone not only for SolarReserve and our plant, but also for the solar energy industry as a whole...“Our U.S.-developed technology has the ability to store energy for 10-15 hours and solves the issue of intermittent power generation to the grid,the number one limitation to other solar and wind renewable energy technologies. We can deliver electricity ‘on demand’ the same way a coal, natural gas or nuclear fueled plant does – but without emitting any harmful pollution or hazardous materials – providing a genuine alternative to conventional power generation.”

http://www.multivu.com/mnr/54637-solarreserve-world-s-largest-molten-salt-solar-tower-plant-zero-emission
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Robert Lee Harrington
I'd Love To Change The World..
08:11 PM on 03/24/2012
Crescent Dunes boosts Nevada’s new solar economy

Mar 23, 2012

After Nevada Sen. Harry Reid announced in his energy report that renewable and solar projects are helping to breathe new life back into the state’s economy, SolarReserve was eager to report its job numbers.

The company is building the 110-megawatt Crescent Dunes solar tower outside of Tonapah, Nev., right now.

The project is expected to employ more than 600 people throughout the next two years while it’s being built, said SolarReserve vice president of development Tom Georgis.

“It’s certainly the largest capital investment in the state right now,” Georgis said. “We’re spending close to $1 billion. Certainly, not all of that is coming directly from Nevada, but a lot of a direct investment in Nevada.”...

http://www.cleanenergyauthority.com/solar-energy-news/crescent-dunes-boosts-nevada-s-new-solar-economy-032312/
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Robert Lee Harrington
I'd Love To Change The World..
08:09 PM on 03/24/2012
Crescent Dunes Solar Energy

Tonopah Solar Energy, an affiliate of SolarReserve, LLC, is the developer of the Crescent Dunes Solar Energy Project. The project is located northwest of Tonopah, Nevada, in Nye County with a nominal net generating capacity of 110 megawatts (MW). When completed, Tonopah Solar Energy’s facility will supply approximately 500,000 megawatt hours annually of clean, reliable electricity – enough to power up to 75,000 homes during peak electricity periods utilizing its innovative energy storage capabilities.

The Cresent Dunes Solar Energy Project will utilize SolarReserve's concentrating solar power (CSP) technology, with a central receiver tower and the leading integrated energy storage technology that was developed by Pratt Whitney Rocketdyne, a subsidiary of United Technologies Corp. (UTC). Construction at the plant began in August of 2011, and the plant is expected to be in operation by January 2014. The project will help meet the increasing demand for clean, renewable electrical energy in the US and help reduce reliance on fossil fuels and associated greenhouse gas emissions..."

http://www.tonopahsolar.com/
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MrBIgp
If I'm wrong, please show me
12:49 AM on 03/23/2012
"You'd think that everybody would be supportive of solar power," Copper mountain cost 141 million dollars, takes 450 acres of land and produces 100 megawatt hours a year. It doesn't work at night, and runs at greatly reduced capacity on overcast days. It would take 80 copper mountain facilities, covering 36,000 acres costing over 11 billion dollars to equal the output of one nuclear plant. But unlike copper mountain, the nuclear plant would produce 24/7/365 power. The solar plant has an expect life of 25-30 years, a new nuclear plant has an expected life of at least 60 years.

To produce the same electricity as nuclear produces now, would cost 1.1 trillion dollars and cover 3.6 million acres of land.

I, for one, am not supportive of solar projects like copper mountain.
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Talk2PassiveActionVital
Stand against fa$ci$m or our children will kneel
03:12 PM on 03/23/2012
Say, how's that national program of uranium refinery plant clean ups and radioactive nuclear waste non-storage going these days?
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MrBIgp
If I'm wrong, please show me
09:26 PM on 03/23/2012
Ask a coherent question and I'll answer it.
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vetxcl
01:55 AM on 03/31/2012
It's nice that you have an opinion, but putting quotes around something doesn't make it factual.

Neither does stating something as fact, when it's merely an opinion do anything but damage the credibility of the person uttering it.
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RepublicanDepression
Of the1% by the1% for the Gerrymandering One% =GOP
06:33 PM on 03/22/2012
Pass laws to end excessive oil speculation! Let real supply and demand control the market, not wall street speculators!

FACTS:

US Oil production is UP under Obama and HIGHER than under GOP Bush!

There is more supply of gas in the US than under GOP Bush. There is no supply problem.

Over 80% of the oil futures market is NOT in the hands of oil users, like airlines, but in the hands of OIL SPECULATORS- the same wall street types who helped crashed the economy under Bush.

They are the reason that oil prices are going up. Without this speculation, gas prices would be a lot lower.

If you did not know those FACTS, where do you get your news?
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Talk2PassiveActionVital
Stand against fa$ci$m or our children will kneel
03:13 PM on 03/23/2012
...I smell the stench of goldman suchs all over this.
D-Driller
my micro-bio is empty
03:57 AM on 04/02/2012
I agree with everything you said. Why isn't Obama talking about this every day? Why isn't Reid? Pelosi? I honestly don't understand the Lib mindset - just because they may not get it passed through the House, they shouldn't at least say something? Try to pass the legislation? You have to admit, Republicans would NEVER act this way - no matter how slim their chances of getting something passed may be, they are going to propose it, and scream it from the rooftops.
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JoeTheProgrammer
I love dogs.
03:50 PM on 03/22/2012
" In 2008, candidate Obama criticized an inside-the-Beltway culture for the rise in gasoline prices."

Guess that makes him fair game.
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Talk2PassiveActionVital
Stand against fa$ci$m or our children will kneel
03:15 PM on 03/23/2012
obama criticized the D.C. crowd because he couldn't afford to attack the wall street commodities traders, brokerages and investment bankers funding his campaign.
02:04 PM on 03/22/2012
Today, Mr Obama is actually trying to say that his Solyndra failure is (somebody else's fault) Congress' fault because they passed the green energy loan program before he was President that his Administration used to fund Solyndra, or something.........epic fail
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Robert Lee Harrington
I'd Love To Change The World..
02:09 PM on 03/22/2012
The program started under Bush (Republican)
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Robert Lee Harrington
I'd Love To Change The World..
02:17 PM on 03/22/2012
Did the program that funded the Solyndra loan start under George W. Bush?
David Plouffe says so

"...Program dates back to 2005

The Energy Department's loan guarantee program was created as part of the Energy Policy Act of 2005, passed by a Republican-controlled Congress and signed by Bush...The loan guarantees were designed to "support innovative clean energy technologies that are typically unable to obtain conventional private financing due to high technology risks."

Republicans, including Bush, emphasized the program's benefits for nuclear energy and biofuels...The Energy Department issued its final rules for the program in 2007, along with a list of 16 companies that made the cut for to apply for its first round of awards, and Solyndra was among them...."

"...Our ruling

Plouffe said that the loan guarantee program that awarded half a billion dollars in guarantees to Solyndra "was supported by President Bush."...The Bush administration, though, promoted the loan guarantee program, and Bush himself touted it on his way out of office. There's also evidence his administration specifically prioritized Solyndra's project.

We find Plouffe's statement Mostly True.

http://www.politifact.com/truth-o-meter/statements/2011/nov/17/david-plouffe/solyndra-loan-george-w-bush-david-plouffe/
02:34 PM on 03/22/2012
Correct, the program was created before Obama.......not the loan to Solyndra......the Bushies denied Solyndra's application as too risky.....Obama Energy Dept. made their approval of the Solyndra loan a cornerstone of his rush into the politics of Green Energy, and now he is lamely looking around to blame someone else......fail
10:56 AM on 03/22/2012
What if you are thinking about enchiladas for dinner? Of course, you would want the “whole enchilada.” However, your cook, who happens to be President Obama, has rejected your desires. But, to make it up to you, he says he is willing to serve you, in a little bowl, a tablespoon of onions. Yes, onions are part of the recipe for enchiladas. So, he brings this little bowl of onions to your table and says: “Enjoy, bon appetit. Here is your whole enchilada.”
It is an illusion, get it? You want, and need, the entire Keystone XL pipeline to help America with affordable energy, jobs, and the economy, but he has rejected the project. However he is approving of a small section of the whole project, just a little bowl of onions.
This is a complete sham. It is an insult. You, the person reading these comments, your President thinks an illusion can satisfy your concerns about the lack of affordable energy his policies have created.
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HUFFPOST SUPER USER
Robert Lee Harrington
I'd Love To Change The World..
02:19 PM on 03/22/2012
Keystone XL is a "Complete Sham."

Few jobs; foreign steel; higher gas prices; spills; pollution and climate change
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Talk2PassiveActionVital
Stand against fa$ci$m or our children will kneel
03:20 PM on 03/23/2012
...add 1) expedited tar sands mining destroying Alberta/Canada's boreal forest systems at alarming rates, decimating migratory bird populations; 2) tar sands oil extraction is causing concentrated methane emissions at the mine sites; 3) the world's dirtiest oil, once refined, will be shipped abroad, not consumed in the US
08:59 PM on 03/23/2012
Oh, I did not know Keystone XL was a "complete sham." I feel better now about paying $4 plus per gallon of gasoline.
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yeti7
don't need no stink'n badges
10:39 AM on 03/22/2012
First--- "With gasoline reaching $3.86 a gallon in the U.S. and apparently heading higher, the public is impatient for Obama – or someone in his place – to do something about it."

Yes higher-go to gas buddy to just how high, $3.86 is about the lowest.

Second-How much longer will Copper Mountain remain in business?
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Robert Lee Harrington
I'd Love To Change The World..
02:05 PM on 03/22/2012
"...The power from Copper Mountain Solar Facility has been sold to Pacific Gas & Electric under a 20-year power purchase agreement..."



http://en.wikipedia.org/wiki/Copper_Mountain_Solar_Facility
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yeti7
don't need no stink'n badges
03:59 PM on 03/22/2012
Interesting. Seems like many of the companies Obama visits ends up going out of business or shutting some aspect of it's business down.
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Robert Lee Harrington
I'd Love To Change The World..
02:09 PM on 03/22/2012
You are ALWAYS UNINFORMED