Research Briefing

Obama Thinks We Should Pay More At The Pump,
Are We Paying Enough Yet?

When Asked If High Gasoline Prices Would Be Helpful, Obama Said He Preferred A “Gradual Adjustment.” CNBC’s JOHN HARWOOD: “So could these high prices help us?” OBAMA: “I think that I would have preferred a gradual adjustment.” (CNBC’s “Your Money, Your Vote,” 6/10/08)

THE OBAMA WHITE HOUSE BELIEVES THAT
HIGHER GAS PRICES ARE A GOOD THING 

Sen. Obama In 2008: “[O]bama Suggested That The Main Problem With High Gasoline Prices Is Their Rapid Rise, Not Their Total Of About $4 A Gallon.” (Charles Babington and Jim Kuhnhenn, “One Down, More To Go For Republicans Aiding McCain,” The Associated Press, 6/12/08)

Obama Thought That Americans Could “Adapt” To Higher Gas Prices. “But if the government gives middle-class families tax cuts and encourages the market ‘to adapt to these new circumstances more quickly, particularly U.S. automakers, then I think ultimately, we can come out of this stronger and have a more efficient energy policy than we do right now.’” (Charles Babington and Jim Kuhnhenn, “One Down, More To Go For Republicans Aiding McCain,” The Associated Press, 6/12/08)

• And Obama Wasn’t Concerned That Cap-And-Trade Would Have Boosted Consumer Energy Prices, He Boasted That: “[U]nder My Plan Of A Cap And Trade System, Electricity Rates Would Necessarily Skyrocket.” (Sen. Barack Obama, Interview With San Francisco Chronicle Editorial Board, 1/17/08)

Energy Secretary Stephen Chu: “Somehow We Have To Figure Out How To Boost The Price Of Gasoline To The Levels In Europe.” (Neil King Jr. and Stephen Power, “Times Tough For Energy Overhaul, The Wall Street Journal,” 12/12/08)

Treasury Secretary Geithner Said The World Economy Can “Absorb” Higher Gas Prices. “Treasury Secretary Timothy F. Geithner expressed confidence Wednesday that the world economy can successfully absorb any spike in oil prices brought on by political unrest in Libya and the greater Middle East.” (Dan Balz, “Geithner Confident World Can Deal With Oil Price Spike,” The Washington Post, 2/23/11)

WHILE THEY WORK TO HURT DOMESTIC ENERGY PRODUCTION
WITH JOB-KILLING REGULATIONS 

Sen. Mary Landrieu (D-LA) Blasted The Obama Administration’s Drilling Moratorium For Forcing Gulf Rigs To Other Countries. “[Sen. Mary Landrieu] argued that driving away the rigs would not only have a negative economic impact for the United States, but also a negative environmental impact for the world, since the rigs would be sent to countries with fewer regulations and weaker court systems.” (Stephanie Condon, “Mary Landrieu: Drilling Moratorium Could Cost More Jobs Than Oil Spill,” CBS News, 7/14/10)

Due To Obama’s Drilling Moratorium, Shell Will Pump “40,000 Barrels A Day Less” Through 2011. “Shell, which is one of the largest operators in the U.S. Gulf of Mexico, said that next year it expects to pump 40,000 barrels a day less than it had planned before the drilling halt was imposed, representing about 1.3% of its current production. There could also be ‘further impacts’ in 2012, it said.” (Guy Chazan, “Shell: Drilling Ban Fallout Will Endure,” The Wall Street Journal, 10/28/10)

• “In A Call With Reporters, Shell's Chief Financial Officer Simon Henry Also Said The Company Had So Far Taken $115 Million In Charges This Year For Drilling Rigs Idled By The Moratorium.” (Guy Chazan, “Shell: Drilling Ban Fallout Will Endure,” The Wall Street Journal, 10/28/10)

In December, The Obama Administration Moved Beyond The Gulf And Banned Offshore Oil Drilling Along Most Of The U.S. Coastline. “Interior Secretary Ken Salazar announced Wednesday afternoon that the Obama administration will not allow offshore oil drilling in the eastern Gulf of Mexico or off the Atlantic and Pacific coasts as part of the next five-year drilling plan, reversing two key policy changes President Obama announced in late March.” (Juliet Epstein, “Obama Administration Reimposes Offshore Oil Drilling Ban,” The Washington Post, 12/1/2010)

The Bureau Of Land Management Is Holding Up Oil And Gas Exploration In Western States. “The petroleum industry sued the federal government Monday to try to force action on a backlog of hundreds of unissued federal oil and gas leases in the Rocky Mountain region. The Denver-based Western Energy Alliance and six companies based in Colorado, Wyoming and Oklahoma filed suit in U.S. District Court in Cheyenne. The lawsuit focuses on 118 leases in Wyoming and Utah that the U.S. Bureau of Land Management has not issued despite selling them to the companies at public auctions as long ago as November 2005.” (Mead Gruver, “Energy Group Sues Over Oil-Gas Lease Backlog,” The Associated Press, 10/18/10) 

• Over $100 Million Has Been Spent For Oil Leases That Sit Inactive While BLM Does Nothing. “Region-wide, hundreds of leases sold in the past few years — 1,057 in Wyoming alone — still await decisions on whether they ultimately will be issued or not. Companies have paid more than $100 million for unissued leases across the region, money the government has not offered to refund while also not granting the go-ahead to drill on public lands, the lawsuit said.” (Mead Gruver, “Energy Group Sues Over Oil-Gas Lease Backlog,” The Associated Press, 10/18/10)

Interior Secretary Ken Salazar Acknowledged That BLM Regulatory Hurdles Will Delay Domestic Energy Production. “Energy companies seeking to drill for oil and gas on public lands in the U.S. will face stiffer environmental scrutiny and new regulatory hurdles under changes announced Wednesday by Interior Secretary Ken Salazar. … Salazar acknowledged that the new rules could add delays to the leasing and drilling process but said he hoped the changes also would curb the rising number of legal challenges to government drilling decisions.” (Jennifer A Dlouhy, “Interior Chief Adds Hurdles For Drilling On Public Lands,” The Houston Chronicle, 1/6/10)