by Carl Hulse, 5-3-11
The killing of Osama bin Laden will dominate Congressional conversations this week, but top aides said Monday that lawmakers still intended to pursue their planned agenda as members of the House and Senate return from spring break.
That means plenty of talk about the debt limit fight as well as efforts by House Republicans and Senate Democrats to try to score quick political victories tied to consumer unrest over rising gas prices.
The House leadership has scheduled votes for Thursday on a pair of bills that would spur more offshore oil and gas exploration and expedite the permitting process. Top Republicans see those measures as reinforcing their argument that Democrats and the Obama administration are partly responsible for rising prices at the pump because they have stifled domestic production.
In the Senate, Senator Harry Reid, the Nevada Democrat and majority leader, is pursuing the issue from another direction with a push to eliminate billions of dollars in special tax breaks for oil companies rolling in big profits at the moment.
“We need to take away the subsidies of these five major oil companies,” Mr. Reid told reporters last week. “I’m going to try to get it done as soon as I can do it procedurally in the Senate here.”
The votes are likely to make good theater but probably won’t produce any immediate results since the Senate is unlikely to take up the House bills, and the House doesn’t seem inclined to consider cutting oil company subsidies at the moment.
In another politically charged series of votes, the House is set to vote Tuesday on a plan to block the administration from spending money on some key initiatives related to the new health care law. Oneof the measures would block grants that are to go to states to set up new health insurance exchanges for consumers – a central element of the health law.
Since they have been unable to overturn the legislation outright, House Republicans intend to go after the law piece by piece. But the proposals appear to have little chance at even being considered in the Senate, leaving a stalemate. The House is expected to vote Wednesday on a measure to prohibit federal dollars from being spent on abortions, a policy that is now in place under a ban that is renewed annually.
The Senate career of Senator John Ensign, Republican of Nevada, officially concludes with his resignation as of May 3. Representative Dean Heller, a House member from Nevada who was already running for the seat in the 2012 election, has been appointed to fill the vacancy and could be sworn in quickly.
The bipartisan leadership of the Congress is scheduled to dine at the White House on Monday with President Obama and his wife. And Vice President Joseph R. Biden Jr. is set to convene negotiations over how to rein in the deficit at a meeting with Congressional officials on Thursday.
Potential Mideast unrest should not impact gas price debate
Darren Goode, Politico, 5-2-11
On the surface, the killing of Osama bin Laden is a tailor-made argument for lawmakers about the need to reduce America’s dependence on foreign oil amid the record high gasoline prices this spring.
Indeed, the Al Qaeda leader’s death may be the most tactile reminder of U.S. entanglements in the Middle East and Central Asia. But the reality is bin Laden’s death most likely won’t affect oil prices that much considering he’s been on the run for over a decade and the latest run-up in crude prices is primarily due to political uncertainty in Arab countries.
That means members of Congress are thus far steering clear and staying on message as they prepare for several weeks of bickering over gas prices.
“Any realistic discussion of oil politics and gas prices has always involved the inherent instability of Middle East politics whether or not Osama Bin Laden was alive or dead,” said Eben Burnham-Snyder, spokesman for House Natural Resources Committee ranking member Ed Markey (D-Mass.).
House and Senate leaders will press ahead as scheduled on the floor and before the TV cameras with a debate that largely pits Republican plans to expand domestic oil and gas drilling against a White House-led effort to scale back billions in oil industry tax incentives.
The average price of a gallon of gasoline is $3.96, the Energy Information Administration reported Monday.
http://www.politico.com/news/stories/0511/54100.html#ixzz1LIKp7YfM
POLITICS: Amid reactions to bin Laden’s death, many ask, ‘What about gas prices?’
Anne C. Mulkern, E&E Daily, 5-2-11
After learning that U.S. forces had killed Osama bin Laden, Republican Sen. James Inhofe of Oklahoma proclaimed, “We rejoice that this monster is dead.”
Inhofe and other lawmakers praised the news and the efforts that led to the death. But the American moment of victory appeared short-lived. On social networking sites Facebook and Twitter, many urged President Obama and Congress to put the focus back on fuel costs.
“Now that he is dead! Can we get some substantial relief at the Gas pump,” Neal Harris wrote on the Facebook page of Sen. Lindsey Graham (R-S.C.). “We need some investigating of the oil market and who is behind of the inflating speculations of the oil …America is Going down the Tubes. It cost me over a hundred dollars to fill my truck with the cheap alcohol stuff that gets less miles per gallon. Help … the need is now.”
Alli Rhae Belenger of Boston tweeted, “I’ll give Obama all the praise in the world for killing Bin Laden; but because of him I gotta pay hundreds for Health Care and $3.99 for gas.”
A woman using the Twitter handle Akhmed wrote, “Now that Osama is dead, will the gas prices go down? Cause that’s all I care bout ha.”
Others saw conspiracy in Obama’s announcement about bin Laden.
“The only reason Obama tellin people Im dead is so he can raise gas prices,” tweeted someone using the moniker “OsamaBinIaden.” Eliza Lily Rodriguez of New York tweeted, “Now how about those gas prices Obama?”
Senate Majority Leader Harry Reid (D-Nev.) fielded questions today about the bin Laden apprehension’s potential impact on world oil markets. “I think the international economic community is relieved that this man is out of circulation,” he told reporters.
Most lawmakers steered clear of gas prices and praised the actions that led to bin Laden’s death.
http://www.eenews.net/Greenwire/2011/05/02/3/
Survey: Gas Prices Cause Shoppers To Downgrade
Jonathan Welsh, Wall Street Journal, 5-3-11
Rising fuel prices are getting the attention of car shoppers and compelling many to shift their priorities for picking a new vehicle. More than half of consumers surveyed said they have already lowered their sights somewhat regarding the next cars they plan to buy.
Kelley Blue Book, an auto industry research company that tracks vehicle pricing and consumer trends, says 84% of shoppers responding to its Market Intelligence survey in April said gasoline prices have influenced the types of vehicles they consider buying. The survey results show a steady increase this year in the importance of fuel prices in purchasing decisions.
Kelley says the number of consumers who say better fuel economy was their main reason for planning to purchase their next vehicle has risen 12% since the beginning of the year through April. According to the survey, 58% percent of people responding said the economy has caused them to make downgrades including picking smaller vehicles and smaller engine sizes. Consumers also said they plan to forgo certain extra-cost optional equipment. The company said 32% are considering buying a used vehicle instead of a new one.
http://blogs.wsj.com/drivers-seat/2011/05/02/survey-gas-prices-cause-shoppers-to-downgrade/?mod=google_news_blog
U.S. gas prices rise again
Dan Berman, Politico, 5-3-11
The average price of a gallon of regular gasoline continued its march to $4, hitting $3.96, the Energy Information Administration reported Monday afternoon.
That’s 8 cents higher than last week and 86 cents higher than on Jan. 31.
Premium unleaded buyers are paying an average of $4.20 pergallon, also an 8 cent increase from last week.
To be sure, prices are much higher in several states and cities. According to AAA, motorists in California will pay $4.26 for a gallon of regular on average, $4.15 in New York and $4.12 in the District of Columbia.
Want to save money? Head to the Rocky Mountains. In Colorado, drivers pay an average of $3.68 per gallon of regular. It’s $3.66 in Montana and $3.60 in Wyoming.
http://www.politico.com/news/stories/0511/54146.html#ixzz1LIL1x9I4
Ouch! $5-a-gallon gas in future?
United Press International, 5-2-11
NEW YORK, May 2 (UPI) — Gas prices already hover around $4 a gallon across the United States, causing a few analysts to say shelling out $5 a gallon later this year isn’t a stretch.
But they’re in the minority. The more common view among energy-sector analysts is that gasoline prices this year won’t climb by another 28 percent needed to hit the $5 mark, The Christian Science Monitor reported.
Nine states and the District of Columbia already pay more than $4 a gallon. The average price of $3.91 per gallon of regular unleaded gasoline on Monday was $3.952, the AAA Daily Fuel Gauge Report indicated.
Gas prices have jumped 36 percent during the past year, zinging consumers in the wallet and challenging the prospect economic growth could slow down as a result.
http://www.upi.com/Business_News/2011/05/02/Ouch-5-a-gallon-gas-in-future/UPI-13121304353983/#ixzz1LIQCsg5K
Buffett, Welch say gas prices could hurt economy
Associated Press, 5-2-11
OMAHA, Neb. — Berkshire Hathaway CEO Warren Buffett and former General Electric Co. CEO Jack Welch both say the economy is improving, but rising gas and food prices could hurt growth.
The two revered businessmen appeared together on CNBC Monday. Buffett’s interview had been scheduled to discuss last weekend’s Berkshire Hathaway ( BRK – news – people )shareholders meeting, but the death of Osama bin Laden was also discussed.
Buffett said the reports he gets from Berkshire’s 80-odd businesses show the economy is still improving slowly except for businesses related to the U.S. housing market.
But Buffett and Welch both expressed concern that rising gas and food prices will hurt consumer spending.
Welch says the increase in gas prices sucked $100 billion out of the economy in the first quarter.
http://www.forbes.com/feeds/ap/2011/05/02/general-industrials-us-buffett-media_8444971.html
Bin Laden death spurs wild oil ride, but prices stillclimb
Mark Glover, The Sacramento Bee, 5-3-11
The death of Osama bin Laden sent crude oil on a roller coaster ride Monday but appears unlikely to stop the ongoing spike in gas prices.
The average retail price of gas in the Sacramento area rose 4.5 cents to $4.19 a gallon over the past week, according to Monday’s weekly report by SactoGasPrices.com, a GasBuddy.com website.
The previous week, area prices were virtually unchanged.
The current price is $1.13 a gallon higher than it was a year ago and 19.1 cents higher than a month ago.
Nationally, the average price spiked 7.1 cents last week to $3.92 a gallon – 29.2 cents higher than last month and up $1.01 from last year.
For a second week, analysts noted that the nation’s stocks of motor gasoline and gasoline-blending components are shrinking -205.5 million barrels vs. 219.7 million on March 18.
“Gas supply certainly does trump everything else,” said Jason Toews,co-founder of GasBuddy. “The changeover from winter to summer(blend) gas and some refinery outages have been pushing prices up.
“Anything that (depletes) supply makes the price go up. And if supply dries up, then you have panic buying.”
http://www.sacbee.com/2011/05/03/3596511/bin-laden-death-spurs-wild-oil.html#ixzz1LIGwOjnF
Gas prices set record in Chicago
Chicago Tribune, 5-2-11
U.S. gasoline prices surged ever closer to the $4-a-gallon threshold in the latest week, placing more pressure on lawmakers to show voters they are working to provide relief at the pump.
In Chicago, the average price for a gallon of gasoline jumped 10 cents to hit $4.352 over the past week, the Energy Department said. That exceeds the city’s all-time high of $4.303 set on July 7, 2008.
From the White House to Congress, politicians facing election next year are eager to appear active on this issue, which could prove difficult to fix in the short run.
The average price of U.S. gasoline jumped 8.4 cents to $3.96 a gallon in the week ending Monday, the U.S. Energy Information Administration said a weekly update.
Gasoline is up $1.07 a gallon compared to a year ago, with oil above $113 a barrel on Middle East unrest and a weak dollar.
Consumers in New England, the Midwest and on the West Coast were already facing fuel costs averaging above $4 a gallon.
The skyrocketing gasoline prices have lawmakers scrambling to act, but there is little they can do to lower fuel costs quickly, analysts said.
“The political pressure is very strong and the need to do something is very strong, but I don’t expect there are many things they can do that will give immediate relief,” said David Pumphrey, of the Center for Strategic and International Studies, who once worked at the Department of Energy.
http://www.chicagotribune.com/business/breaking/chibrkbus-gas-prices-jump-again-in-us-set-record-in-chicago-20110502,0,4508145.story
Pump shock: Gas average near $4
Thomas Grillo, Boston Herald, 5-2-11
The Bay State’s average gasoline price rose sharply over the past week, creeping closer to the psychological level of $4 per gallon and sparking fears of pain at the pumps this summer.
In July 2008, gas prices peaked at $4.09 a gallon in Massachusetts and $4.11 a gallon nationwide.
“There’s a 50/50 chance that we will surpass that record,”said Patrick DeHaan, senior petroleum analyst at GasBuddy.com.”Prices traditionally peak in the first week in May, but it’s unclear what impact Osama bin Laden’s death will have on the oil markets.”
AAA Southern New England’s weekly survey of Massachusetts gas prices found self-serve, regular averaging $3.95 per gallon, up 12cents in a week and 88 cents since the start of the year. A year ago, gas averaged $2.86.
The range in gas prices from station to station is a whopping 86 cents, according to BostonGasPrices.com. The lowest price of $3.83 was reported at Prime Energy in Burlington yesterday and the highest price of $4.69 at United in Lexington.
A report tomorrow from the U.S. Department of Energy on the nation’s gas supply and demand will shed more light on whether average prices will top the state record set nearly three years ago.If gas supplies continue to fall, DeHaan said, prices will rise. If supplies are up, prices should level off, he added.
“There’s no way to predict pricing until we see those numbers,” DeHaan said.
Matthew LeLacheur, executive director of the New England Service Station and Automotive Repair Association, said it’s hard to imagine gas prices falling anytime soon.
“Short of settlement of the unrest in the Middle East which will probably get more restless after the death of Osama, I can’t see prices falling,” he said. “Prices typically rise in the summer because it’s more expensive to refine summer fuel than winter fuel.”
http://www.bostonherald.com/business/general/view/2011_0503pump_shock_gasaverage_near_4/srvc=home&position=recent
Eliminating Oil Subsidies: Two Cheers For President Obama
Jerry Taylor and Peter Van Doren, Forbes, 5-3-11
Last week President Barack Obama responded to rising public anger over soaring gasoline prices by banging the drums for the elimination of various tax breaks enjoyed by the oil and gas industry. Although House Speaker John Boehner, R-Ohio, initially suggested that he might be open to President Obama’s proposal, the House GOP leadership chose to answer the president’s weekly radio address–which advocated elimination of those tax breaks–with freshman Tea Party Congressman James Lankford, R-Okla., who charged that the plan was about “hiking taxes by billions of dollars.”
“The president may think he’s punishing CEOs of big companies,” said Lankford, “but his plan will hurt the everyday consumer of energy and imperil the jobs of millions of hardworking people in American-based companies.”
First of all, let the record show that President Obama is right and the GOP is wrong about these tax breaks. They make the economy less–not more–efficient and do nothing to reduce prices at the pump.
Although the president hopes to eliminate eight specific tax breaks–which cost the Treasury $43.6 billion over 10 years–only three, accounting for $31.9 billion of that total, are particularly important. Conservatives have no business defending any of them.
The largest tax break at issue is a tax credit passed in 2005, which is available to all U.S. manufacturers. Oil and gas companies qualify for that credit, so they will likely deduct somewhere in the neighborhood of $18.3 billion from their tax bill over the next 10 years. Note that this isn’t really an “oil subsidy”; it’s a manufacturing subsidy that oil and gas companies–along with many other companies–enjoy.
Rigging the tax code to make investments in manufacturing artificially more attractive than investments in something else is an enterprise designed to harm non-manufacturers for the benefit of …manufacturers. Conservatives who want government to leave markets alone have no business throwing their political bodies in front of this tax break. If their political rhetoric means anything, they would see the president’s bid and raise him by calling for total repeal of this tax break for everyone, not just for oil and gas companies.
http://www.forbes.com/2011/05/02/eliminate-oil-subsidies.html
Special thanks to Richard Charter