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Bush Says Little Can Be Done About High Gas Prices
Sierra Times ^ | 4/22/2006 | AP Staff

Posted on 04/24/2006 4:59:57 AM PDT by FerdieMurphy

SAN JOSE -- As oil prices hit a record, drivers worried about $3-a-gallon gas and politicians feared the impact on elections, President Bush on Friday acknowledged the pain but seemed resigned to being able to do little about it.

"I know the folks here are suffering at the gas pump," the president said while promoting his competitiveness initiative at the Silicon Valley headquarters of Internet networking company Cisco Systems Inc. "Rising gasoline prices is like taking a _ is like a tax, particularly on the working people and the small-business people."

But to address the immediate problem, Bush offered only a pledge that "if we find any price gouging it will be dealt with firmly."

Bush said that lowering America's dependance on foreign oil imports will help reduce the country's vulnerability to global oil price fluctuations. On Saturday, the president was pushing his proposals to boost spending to develop alternative energy sources, particularly hydrogen-fueled cars.

Critics say Bush's ideas are too modest and focus on solutions that are far from being a reality in the marketplace.

Crude-oil prices broke through $75 a barrel Friday amid concerns about the standoff over Iran's nuclear ambitions, rebel disruptions of oil production in Nigeria, and tight U.S. gasoline supplies. Analysts say they are likely to climb even higher.

Prices at the gas pump also kept rising and were not considered at their peak, with the average price of a gallon of unleaded regular gasoline at $2.855. That's 3 cents higher than a day earlier and more than 60 cents higher than a year ago, according to AAA's daily fuel gauge report.

Democratic efforts to score political points by focusing on gas prices have Republicans worried that their majority in Congress could be at risk in the fall midterm elections.

High gas prices were hardly the only problem facing Bush's White House as he embarked on a four-day swing to California and Las Vegas. He was traveling with new chief of staff Joshua Bolten, charged with reinvigorating a White House rocked by public discontent with the Iraq war and a series of missteps ranging from an ill-fated Supreme Court nomination to a bungled response to Hurricane Katrina.

Bush's poll ratings are at their lowest point. Hundreds of protesters called for his resignation near the Cisco compound where he spoke.

Even his trip put the president squarely in the middle of a federal-state dustup.

Bush decided not to grant the pre-emptive federal disaster declaration sought for California's fragile levees by Gov. Arnold Schwarzenegger, a Republican who faces a tough re-election fight and has had a chilly relationship with Bush. Instead, the president is allowing the U.S. Army Corps of Engineers to help speed repairs at the state's expense.

Bush seemed aware of the precarious political landscape.

When Bush turned the microphone at Cisco over to Schwarzenegger, the governor said, "First of all, I want to say congratulations."

"For what?" asked the president, appearing genuinely surprised.

The governor, who had discussed the levee issue during a limousine ride with Bush, replied that he was glad to see the president "really paying attention" to the competitiveness issue.

Afterward, Bush talked privately with scholars from Stanford University's Hoover Institution, including former Secretary of State George P. Shultz, a Hoover fellow and early defender of the use of pre-emptive force to deal with Saddam Hussein's regime in Iraq.

Plans to hold the meeting at the Hoover Institution were scuttled when protesters blocked Bush's motorcade from going through the only entrance. Shultz, who was already hosting a private dinner for Bush later at his Palo Alto home, had the session moved to his two-story, gray-shingled house.

One reason for a weekend trip with a lot of downtime in beautiful places became clear even before Bush boarded Air Force One to leave Washington. Crew were seen loading two shiny mountain bikes _ one a red-white-and-blue Trek adorned with the presidential seal and "United States of America." With stays scheduled in picturesque Napa Valley and the Palm Springs area, the bikes weren't likely to remain clean for long.

"Tomorrow I'm going to be riding my bike in Napa Valley. I can't wait," Bush told his Cisco audience.

Before returning to Washington Monday night, Bush was making stops to raise money for the national Republican Party, visit with Marines and Navy sailors, and press Congress to break a logjam over the immigration legislation he wants.


TOPICS: Editorial; Extended News; Government; News/Current Events; Politics/Elections
KEYWORDS: bush; calvisit; ciscosystems; donothingcongress; economicilliteracy; energy; gascrisis; gasprices; paleosocialists; whining
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To: FerdieMurphy

Drilling is not the issue.

Refinery capacity is.


221 posted on 04/24/2006 8:32:49 AM PDT by BeHoldAPaleHorse ( ~()):~)>)
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To: texastoo
I remember when ol man Bush (HW) said Americans should pay $4.50 to $5.00 a gallon just like the Europeans. His dream is now coming true.

When, exactly, did he say this?

222 posted on 04/24/2006 8:33:15 AM PDT by BeHoldAPaleHorse ( ~()):~)>)
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To: Bikers4Bush
We truly are between a rock and a hard spot.

We're between a liberal president who calls himself a compasionate "conservative" (and, as we all know this tag means the wearer stands for nothing)and democrat candidates who are unapologetically marxists!

Bring on the revolution. This is a lot more important than a tea tax. We, citizens and taxpayers, are already housing the enemy. They live in tony Georgetown digs with a fat expense account and a sea of coolies to staple their foolish legislation and vapid speeches.

223 posted on 04/24/2006 8:33:17 AM PDT by FerdieMurphy (For English, Press One. (Tookie, you won the Pulitzer and Nobel prizes. Oh, too late.))
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To: glockmeister40
Saying there is little he can do just pisses people off.

Yeah, being told the truth generally pisses people off.

224 posted on 04/24/2006 8:34:00 AM PDT by BeHoldAPaleHorse ( ~()):~)>)
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To: FerdieMurphy

E-85 is code for Federal Government Bail out for GM.


225 posted on 04/24/2006 8:35:03 AM PDT by Kokojmudd (Outsource GM to a Red State! Put Walmart in charge of all Federal agencies!)
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To: barnswallow

First, I don't regard Bill O'Reilly as a conservative. He is eccentric, imho. His rants on gasoline prices are irresponsible demagogery. He so infuriates me that I literally cancelled my TV. Media could do a lot to educate consumers as to the power they have. Changes in consumer behavior are a powerful force. Instead most appeal to emotions to get ratings from people acting like babies who don't want to face reality. There are huge changes going on, and when people get with the program, it will be better.


226 posted on 04/24/2006 8:37:23 AM PDT by ClaireSolt (.)
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To: BeHoldAPaleHorse

You don't say? Odd how the gas prices around me jump whether there's a refinery issue or price per barrel issue.

They are both a problem but cheaper costs per barrel will have an immediate impact on the price of a gallon of gas at the pump.

To say anything to the contrary is foolish.


227 posted on 04/24/2006 8:38:11 AM PDT by Bikers4Bush (Flood waters rising, heading for more conservative ground. Vote for true conservatives!)
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To: from occupied ga
Gas prices are not the major issues. They're just another smoke screen to hide what's really going on in which we need to be acutely interested.

In respect to the gasoline prices, however, this illustrates how anxious our politicos are to bring this problem to a head. They've had decades and they do nothing but berate appointed judges and supreme court nominees.

My favorite democRAT warrior, the "Honorable" Senator Patrick Leahy told one of those lower court judge nominees that he was astounded that the candidate wrote disparaging remarks about the growth and evil of federal government.

"I love my government" the Cheshire Cat from the PRV said and "I can't understand why someone wouldn't."

228 posted on 04/24/2006 8:38:56 AM PDT by FerdieMurphy (For English, Press One. (Tookie, you won the Pulitzer and Nobel prizes. Oh, too late.))
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To: new cruelty
No more soup for you.

LOL

229 posted on 04/24/2006 8:39:12 AM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
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To: Bikers4Bush
They are both a problem but cheaper costs per barrel will have an immediate impact on the price of a gallon of gas at the pump.

The speed of this impact depends on the direction of the price, however. If the price per barrel of oil is going up, gasoline prices go up almost instantaneously. If the price per barrel of oil is going down, gasoline prices go down very, very slowly.

230 posted on 04/24/2006 8:41:25 AM PDT by Hemingway's Ghost (Spirit of '75)
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To: barnswallow
"and the oil companies make about 9 cents per gallon"

That is right up there with the Easter Bunny.

What's the figure your sources state?

231 posted on 04/24/2006 8:42:25 AM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
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To: Uncle Vlad
And so will we.

All those mailers from the GOP get recycled quickly here. All those telephone solicitors are promptly told that we are not Republicans. We're Monarchists.

That really gets them.

232 posted on 04/24/2006 8:46:06 AM PDT by FerdieMurphy (For English, Press One. (Tookie, you won the Pulitzer and Nobel prizes. Oh, too late.))
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To: barnswallow
Not so idiotic in theory.

Totally idiotic in theory and practice - soviet style socialism at it's finest. Do you remember the Disasterous price caps on gas during the Jimmy Carter years? And the shortages and lines? Apparently not.

233 posted on 04/24/2006 8:46:21 AM PDT by from occupied ga (Peace through superior firepower)
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To: FerdieMurphy

Thats leadership? Is there any doubt with positions like this, the american public is going to kick Dubya & the GOP in the balls in November?

Unless they shape up.


234 posted on 04/24/2006 8:47:13 AM PDT by HitmanLV (Don't stomp so hard! Your dentures will fall out!!)
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To: subterfuge
and the enviro wackos call the shots

Almost right - I'd phrase it shoot the envirowackos.

235 posted on 04/24/2006 8:47:27 AM PDT by from occupied ga (Peace through superior firepower)
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To: ClaireSolt
He is a Populist Putz....
236 posted on 04/24/2006 8:48:21 AM PDT by Cold Heat
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To: FerdieMurphy

Federal state local taxes on a gallon of gas = average 50 cents per gallon. That is a "windfall profit"

http://www.taxfoundation.org/news/show/1054.html


237 posted on 04/24/2006 8:48:36 AM PDT by silverleaf (Fasten your seat belts- it's going to be a BUMPY ride.)
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To: subterfuge

The congress will be elected in elections where these issues can be effectively used against the obstructionists who have voted against energy issues. It will not be decided by the White House.


238 posted on 04/24/2006 8:49:42 AM PDT by ClaireSolt (.)
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To: barnswallow
That is right up there with the Easter Bunny

Actually, its not. Most oil companies are publicly held. Their financial records are public knowledge. You can calculate the figures yourself. The volume of product the oil industry puts out every day is mind-boggling.

Or, coming from the other direction, about 10% of our gasoline is imported already refined (because we don't have the refining capacity to meet demand). That 10% is around 60 million gallons per day. So, the oil industry is putting out about 600 million gallons of gasoline per day.

Multiply that times 365 and times 9 cents and you'll see where the profit figures come from.

Of course, profit is not the same thing as dividends or cash on hand. The oil industry is very capital intensive. Most of the profits are reinvested back into the business, but unless they are expenses (like depreciation), they show up on the balance sheet, not the income statement. Like any business, profits can be high, but that doesn't necessarily translate into being rolling in cash. Income statements are only part of the overall picture.

If you compare the profitability of oil companies to businesses in general, in the last few years the oil companies have moved from "pathetic" to "below average". The numbers are huge because the oil industry is huge, but the returns compared to other businesses are only "record-setting" when you compare them to the awful historical performance of the oil industry.
239 posted on 04/24/2006 8:50:46 AM PDT by CertainInalienableRights
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To: hgro
5. Don't buy from Exxon Mobil

Your suggestions were right on target until you posted this one.

Exxons net profit is well under 10%. I own stocks AND mutual funds that grow over 20% per year.

No. 5 would sound better if it said "Don't buy from Citgo because it's owned wholly by communist Venezuela!

240 posted on 04/24/2006 8:50:47 AM PDT by FerdieMurphy (For English, Press One. (Tookie, you won the Pulitzer and Nobel prizes. Oh, too late.))
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