GOP Candidates Bash Obama on Gas Prices

by John M. Curtis
(310) 204-8700

Copyright February 27, 2012
All Rights Reserved.                                         

           Heading to the Michigan polls Feb. 28, GOP presidential candidates assailed President Barack Obama for causing today’s run-up in gas prices.  While the price of crude oil has risen about 10% since Jan. 1, gas prices also rocketed upward, with unleaded regular hitting $3.69 nationwide.  With the U.S. auto industry still recovering, they didn’t need high gas prices hurting Detroit’s bottom line.  “I wasn’t to thank the president for the timing,” GOP presidential hopeful former House Speaker Newt Gingrich (R-Georgia) told a Republican convention in Burlingame, Calif.  Tuesday’s Michigan primary could make-or-break former Massachusetts’ Gov. Mitt Romney’s presidential campaign.  High gas prices amount to a punitive tax on consumers, robbing taxpayers of the cash-flow needed to spur the economy.  Blaming high gas prices on Obama couldn’t be more disingenuous.

            Like pinning the nation’s recession on Obama the day he was sworn in January 20, 2009, the GOP has shown great consistency attacking Barack for causing the nation’s recession   Despite the Dow Jones Industrials Average hitting 13,000, or about 70% up from Inauguration Day, the GOP continues to pin the nation’s economic woes on Obama.  Now the GOP spin machine turns to high gas prices.  “If you would like to have a national energy policy, an American energy policy, never again bow to the Saudi king, and pay $2.50 a gallon, Newt Gingrch will be your candidate,” said Newt, blasting Obama for discouraging more domestic production.  Gingrich knows that the U.S. receives virtually no oil from Saudi Arabian, getting the lion’s share of oil supplies from Canada and Mexico.  Gingrich, like other GOP candidates, encourages drilling in the Alaskan National Wildlife Refurge.

            Bashing Obama for not encouraging more domestic production, Gingrich has no answer how to drive down pump prices to affordable levels.  Big Oil has its way of gouging consumers to increase profit margins and quarterly earnings.  Since crude oil is traded on global trading floors, its unrealistic to think more domestic production would change crude oil or eventual pump prices.  Wall Street’s spin machine comes up with more excuses to raise gas prices than reasons for hiking executive pay.  Gingrich has no national energy policy only empty promises all to often broken by Big Oil who raises pump prices when they want to increase profits and quarterly earnings.  Every time the oil industry hikes gas prices, they break all quarterly records when it comes to profits.  Even with more domestic production, the New York Mercantile Exchange figures out how to hike prices.

            All GOP candidates advocate less government regulation of the oil industry to reduce runaway pump prices.  Deregulating the oil industry has resulted in some of the worst ecological disasters in U.S. history.  When British Petroleum’s Deep Water Horizon oilrig exploded in the Gulf of Mexico April 20, 2010, it spewed millions of barrels of oil into pristine Gulf waters.  Less regulation and more laissez faire when it came to offshore drilling sent the Gulf ecology back by 50 years.  More offshore drilling or opening up pristine Alaskan lands wouldn’t lower world crude oil prices.  Even current oil or tar sands exploration in the Mountain states won’t change the price of crude, because supply-and-demand no longer sets oil prices.  Only greedy traders at commodity exchanges in the U.S. and overseas set oil and gas prices, regardless of supply-and-demand.

           Obama’s Jan. 14 veto of the Keystone XL pipeline, delivering oil-sand crude oil from Canada to Texas opened up legitimate criticism.  While the president expressed environmental concerns, he also deferred the project until after the election.  “Only in politics do people root for bad news—do they greet bad news so enthusiastically,” said Barack, pushing back at GOP criticism.  When you look at the big picture, the XL Keystone pipeline would create more jobs and help the U.S. energy independence.  “You pay more, they’re licking their chops,” referring to GOP glee over the sudden run-up in pump prices.  Obama could do much more on the Bully Pulpit, putting oil companies on notice that sudden price-hikes will be investigated by the Justice and Commerce Departments.  When the same price-hikes hit in 2008, it hurt the economy and the GOP’s prospects in the presidential election.

             GOP promises of lower gas prices should one of their own become president has no basis in reality. Crude oil and gas prices are set by global exchanges, doing everything possible to bid prices into the stratosphere.  Obama’s decision after November on the Keystone XL pipeline should be based on weighing environmental concerns against the benefits for U.S. jobs and energy independence.  “High prices not only affect car owners, but the entire industry of automobile sales,” said Michigan Democratic Party Chairman Mark Brewer.  When Big Oil decides to hike pump prices, it harms consumers and the overall economy.  Obama and Congress could do more to rein-in runaway fuel prices.  Stable fuel prices are essential for economic recovery.  Instead of pointing fingers at the GOP, Obama must turn them on Big Oil and hold them accountable for gouging consumers and harming the U.S. economy.

John M. Curtis writes politically neutral commentary analyzing spin in national and global news.  He's editor of OnlineColumnist.com.and author of Dodging the Bullet and Operation Charisma.       

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