Obama's Oil Opportunity

It's the price of oil, stupid! The most recent Gallup Poll shows three issues dominating the 2008 presidential election: "energy, including gas prices," "the economy," and "the situation in Iraq." Oil connects these concerns and also the prospect of global climate change. To win in November, Barack Obama has to focus on America's oil problem.

Over the past year, gasoline prices have skyrocketed throughout the U.S. - in Northern California the price of a gallon of gas is close to $5 a gallon, up 37 percent. According to the U.S. Bureau of Labor Statistics, the average household now spends more than one sixth of their annual expenditures on transportation and this percentage is rapidly increasing, forcing families to forego items like healthcare in order to fill their tanks.

The rapid increase in the cost of petroleum is a key component in America's economic downturn. It affects the price of food - 13 percent of the typical family's annual expenditures - because most foodstuffs have to be transported long distances from the farm to the consumer. And, it dramatically impacts housing expenses - 33 percent of our average annual expenditures - that were already on the rise because of tightening credit markets. Where it was once convenient to live in suburban communities, because housing prices were lower than in urban centers, that's no longer the case since the cost of commuting has become prohibitive. Unfortunately, the influx of former long-distance commuters, forced by rising transportation costs to return to the inner city, is driving metropolitan housing prices further up.

The meteoric rise of gasoline prices is another indication Americans are stuck in an unsustainable lifestyle. We consume 21 million barrels of oil per day, but produce only 5 million. And, the situation is only going to get worse as we use 25 percent of the world's oil supply but possess only 3 percent of the reserves.

While most Americans understand the connection between rising oil prices and our deteriorating economy, for many the relationship between oil and Iraq has remained opaque. Nonetheless, as the war has dragged on, gasoline prices have more than doubled - in California, just before the war began, the average price for a gallon of gas was $1.72, now it is $4.46. Many observers believe the U.S. subjugation contributed to the rising cost of petroleum because it disrupted the supply of Iraqi crude and threatened supplies from neighboring oil states. Rather than the occupation paying for itself because of the availability of cheap Iraqi oil, as the Bush Administration claimed in 2003, it has cost more than half a trillion dollars with no end in sight.

For all these reasons, Senator Obama must make oil the cornerstone issue of his campaign. First, he has to get the attention of panicky voters overwhelmed by rising gasoline prices and desperate for a quick fix. He should declare unequivocally that America's problem is an addiction: we've developed an unsustainable dependence on oil. His message should be: we're all in this together, because we're a nation of petroleum addicts.

Second, Obama has to differentiate his solutions from John McCain's slapdash proposals. Obama should acknowledge there is no quick fix for the problems of those who are totally dependent upon their cars or trucks. America can't drill its way out of our oil shortage and short-term palliatives, such as suspending the gasoline tax or strong-arming Saudis to increase production, aren't the answer.

Third, he must emphasize conservation. In 2001, Vice-President Cheney quipped, "Conservation may be a sign of personal virtue but it is not a sufficient basis for a sound, comprehensive energy policy." Obama has to repudiate this thinking - identify it as a Bush Administration leadership failure - and state that kicking our oil addiction requires a national commitment to conservation and energy efficiency. He should ask all Americans to make personal sacrifices for the common good - something George Bush failed to do after 9/11.

Fourth, Obama has to prescribe a common-sense economic plan to provide immediate relief for America's working families. He has proposed a supplemental economic stimulus package that would provide a host of benefits for those overwhelmed by transportation costs. Now he has to make these more attractive than McCain's "no gas tax" alternative.

Fifth, Obama must provide a vision of a new America by showing the electorate the path to energy independence, a future without oil. He has proposed a comprehensive strategy for a clean energy future that would invest $150 Billion over 10 Years in alternative technology including " the next generation of biofuels and fuel infrastructure," "commercialization of plug-in hybrids," and "development of commercial-scale renewable energy."

Finally, Barack Obama has to infuse his "let's kick the oil habit" sermon with galvanizing emotion, turn it into a moral crusade that all Americans can get behind. He understands our oil problems and has proposed a workable short-term plan and long-term strategy, but so far this hasn't captured voters' imagination. To take advantage of his oil opportunity, Obama must use his rhetorical skills to inspire Americans to work together for a sustainable future.

Comments

[KillTheMessenger]

There is a little problem with this... the known solution to high gas prices are... gasoline taxes, i.e. even higher gas prices. This will hardly be popular, let alone get him elected. And since it would take a decade for the structural changes that could be paid for with these gas taxes to actually take effect, the upside wouldn't be visible until the second term of the president who would come after Obama's second term. I doubt the American people will seriously entertain such a solution.

[sf94127]

O's short tern plan is to take money from the USA oil companies and give it to federal government.
OK, that leaves the oil companies with less money to find our own oil.

O's long term plan is we ride bicycles or walk. Yo, Barry, we all don't live near the El in an upmarket Chicago neighborhood.

[EinChicago]

"For all these reasons, Senator Obama must make oil the cornerstone issue of his campaign. First, he has to get the attention of panicky voters overwhelmed by rising gasoline prices and desperate for a quick fix. He should declare unequivocally that America's problem is an addiction: we've developed an unsustainable dependence on oil. His message should be: we're all in this together, because we're a nation of petroleum addicts."

That describes perfectly teh one way Obama can hand teh election to McCain. What most left wing fundamentalists (and yes, we have fundies on the left as well as the right) fail to see is that saying "suffer, suffer, suffer" to teh majority of americans is guaranteed disaster. The small but vocal fundy left are happy to have $15 gas to try and force others to agree with their extreme brand of conservationism. But the remaining 99% of teh nation will respond with a major backlash. Just ask Jimmy Carter.

[Merlin7]

Exactly! Obama's stance on offshore drilling is a major blunder and he needs to rethink it fast. If he doesn't, the Republicans will beat him to death with it. The bottom line: If your position requires explanation, it's too complicated. Voters respond to bumper-stickers, not explanations. Obama needs to come up with some kind of policy jiu-jitsu, announcing he would allow some offshore drilling in return for higher vehicle gas mileage standards or something else. Maintaining his liberal "purity" on this and other issues is a sure way to lose.

[leduck]

the dumbing down of america
100 years ago speeches on the back of a train would last for hours
now everything comes down to a soundbiteor a bumper sticker


how did america collapse?

[Henry]

Maybe....just maybe, this is the time to examine the "free" market when it comes to the pricing of commodities and while we are at it we could look at the "free" market that delivered the subprime mortgage securitizations "stroke" that had to be remediated by...none other than the federal government. It's really hard to tolerate morons of the right who think in the Herb Hoover, Grover Nordquist mode. And even in the face of evidence they will not concede to the error of the free market.

[timm0]

"The meteoric rise of gasoline prices is another indication Americans are stuck in an unsustainable lifestyle."

Way too heady a claim to make. This is a semantic nit, I admit. But our extreme wastefulness and cultural resistance to conserving anything is the indication of our inability to live a sustainable lifestyle... the rise of gas prices is an indication that concentrated control of resources leads to abuse by those with that power. Two separate things.

[TxAggie]

I think Obamas position on oil and gas is great. no more drilling, no more cars, higher taxes, no use of our nat resources. Al Gore must be proud.