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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: barnswallow
Once an "affordable" price was determined (say $2.50 for regular), then a Price Management and Distribution Bureau could be set up under the Dept. of Energy. It's job would be. a. Make sure gas prices are not raised above the cap. b. Establish octane standards to make sure evasion of price caps does not occur. c. Establish a number of distribution bureaus in each state to make sure that "market information" is maintained, so that no location is running short of gasoline, thus maintaining an even supply and easing any "gas lines" and spot shortages that might otherwise occur. For example, the state of Pennsylvania might have a bureau in the northeast (Poconos); southeast (Philly area); south central (Harrisburg, Lancaster); southwest (Pittsburgh); and northwest (Erie). Each bureau would keep track of gasoline supplies in its area to maintain an adequate supply.

What a great idea! A government agency that regulates the price and distribution of gasoline! They could also put a rationing plan in place, which is what you will need if you create a bureaucracy to handle what should be a free market.

261 posted on 04/24/2006 9:04:11 AM PDT by webheart
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To: FerdieMurphy

California coast and monterey bay.


262 posted on 04/24/2006 9:04:52 AM PDT by hedgetrimmer ("I'm a millionaire thanks to the WTO and "free trade" system--Hu Jintao top 10 worst dictators)
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To: hawkaw
Start exploring and drilling like crazy off the shores of Florida, the South and of course California.

I happen to know for a fact that there's plenty of oil to be had in Southern Bama. There are large pools just north of Mobile. It's high grade "sweet" crude (I think). The problem is that it's too expensive to get the stuff out of the ground at the moment.

263 posted on 04/24/2006 9:05:10 AM PDT by numberonepal (Don't Even Think About Treading On Me)
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To: Arizona Carolyn

That's not what its about. They could not give a shiite about the average American. They look down on the working man as a fool ans trot out gay marraige every election to rile people up.

GWB is no differant than his daddy, a gloabilist, a liberal, and a complete tone-deaf president.

I don't even listen to his garbage anymore. He says we need mexicans because we won't work, we need indians because we are not smart enough. I guess the only job we are qualified for is politics.

What a joke we have become. It makes Rosy the Riviter spin in her grave.


264 posted on 04/24/2006 9:07:02 AM PDT by chris1 (I)
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To: from occupied ga

Those are all libertarian economists; people won't stand for a Randian notion of the strong eating the weak (economically speaking). Since the demand for gasoline is inelastic (i.e. people need it no matter how much it costs), those people who use it are at the mercy of cabals etc., and ordinary market principles that work well with soap or shoes or tvs or automobiles (where there is a huge variety of what to buy and a large number of manufacturers) do not apply to energy.


265 posted on 04/24/2006 9:07:37 AM PDT by barnswallow
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To: snowrip

I agree with you. There's really no difference between Democrats and Republicans except what comes out of their mouths at a debate. In the end, they're all privileged elitests who see political office as a four-year ATM machine instead of a vocation to lead. And with the sewage that gets plumbed during election cycles, good luck finding an honest citizen who'll stick his neck out to get it chopped off running for public office.

I've been politically active since I was in college. I'm done with it. Ronald Reagen was the last man of integrity and courage to occupy the Oval Office. The world became a better place because he not only had principals, but he acted on them. Today, we have an administration that does the right thing by taking out Saddam Hussein, but has no defense for the biggest weapon the terrorists can wield - oil. This is an administration that will hunt Osama bin Laden to the ends of the earth but wants to escort illegal immigrants over the Mexican border, some of which may be Middle Eastern terrorists. This is an administration that talks about a seachange in social issues, but nominates Harriet Miers to the Supreme Court. This is an administration that wants to improve our economy and make the government smaller, then runs up a deficit building up massive bureaucracy and spending like drunken sailors.

Am I missing something? Because it seems to me the common man no longer has a voice. If we don't get what we elected as advertised, why believe anyone?

Very disheartened.


As for the oil issue, ironically, the President is right. There's nothing he can do about the price of oil. By making a statement like that, it tells me that the Chinese basically told us they're not going to be curtailing their consumption anytime soon. Any decision on ANWR is window-dressing at this point - it will take much too long to draw the oil, and there isn't enough capacity to outstrip the rate of growing consumption by the time it's online.

The best thing we, as Americans, can do, is conserve energy, and demand a reduction in the oil tax. And part of conserving energy is being committed to a little bit of change in our lifestyles. More refineries will be of great help, but those don't just pop up overnight, either, and there are so many environmental obstacles, it's almost impossible to get off the ground. So for the forseeable future, it's going to be up to all of us to do our part and stem the cost.


266 posted on 04/24/2006 9:08:56 AM PDT by Rutles4Ever
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To: webheart

"thus maintaining an even supply"

I foresaw the problem of supply; this negates the need for rationing.


267 posted on 04/24/2006 9:09:02 AM PDT by barnswallow
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To: Bikers4Bush
So if refining capacity is truly the bottleneck then why are the gas prices rising along with the cost of a barrel of oil?

Because they were going to go up anyway. The news ends up providing the "justification," but we were headed for $3 a gallon gas this summer even without the current mess with oil prices.

268 posted on 04/24/2006 9:10:44 AM PDT by BeHoldAPaleHorse ( ~()):~)>)
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To: linda_22003

Are hybrids IN demand anywhere other than CA?
I read a few months ago the lawsuits are starting because buyers are not getting the gas mileage they expected from hybrids, NOT EVEN CLOSE.


269 posted on 04/24/2006 9:13:30 AM PDT by Muzzle_em (taglines are for sissies)
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To: Rutles4Ever

Be prepared to be pounced upon by the bots.


270 posted on 04/24/2006 9:13:50 AM PDT by chris1 (I)
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To: Hemingway's Ghost
. . like $400 million retirement packages . . .

I was doing some research over the weekend. There's a pipeline being built from Alaska to the U.S. mainland. A couple of oil companies are cooperating to build it.

One company's fraction is $20 Billion.

Building a new refinery is also a multi-billion dollar proposition, if getting past the regulatory red tape was possible.

Exxon-Mobil alone spends $8 billion/year just on exploration.

I'm not an investor (at least not directly), so its none of my business what payment the executives get from the board, but I'd guess its pretty rare to find management talent that's able to successfully run companies that are as massive, complicated, and competitive as a major oil company. If it takes $400 million retirement to attract the talent capable of squeaking out the margins oil companies make and turning it into $Billions of profits that are in turn used to make $Billions in investments to perpetuate the business, then I'd say its worth it.

From what I've read, the oil companies are hiring and paying well above average wages to everyone - not just the top talent.
271 posted on 04/24/2006 9:15:01 AM PDT by CertainInalienableRights
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To: conservativeammom

I agree with everything you just said.
I'm VERY disappointed with him.


272 posted on 04/24/2006 9:15:14 AM PDT by Muzzle_em (taglines are for sissies)
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To: jdm
If it costs $40 more a week to fill up now versus 2 or 3 years ago, that's an extra $160 a month. If you're an hourly employee, a job that pays just $1 more per hour would (just about) cover the increase in gas.

Meanwhile, other costs are increasing as well. Your hourly employee may very well have an older home with poor insulation, and their heating costs have increased rapidly. Their healthcare costs have also increased.

I don't think you meant it that way, but your comment comes across as callous. I'm fortunate in that I make enough money that gas prices don't impact me in a major way, but some of the hourly employees I have working for me aren't in that position.

273 posted on 04/24/2006 9:15:43 AM PDT by NittanyLion
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To: Rutles4Ever
By making a statement like that, it tells me that the Chinese basically told us they're not going to be curtailing their consumption anytime soon.

Why would they? Do the Chinese have some kind of moral obligation to curtail their consumption of oil so that Americans can drive $60,000 SUVs and live in 4,000 square foot homes on half-acre lots in the suburbs?

274 posted on 04/24/2006 9:18:00 AM PDT by Alberta's Child (Can money pay for all the days I lived awake but half asleep?)
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To: BeHoldAPaleHorse

I was interested in what I could find, so did a Nexis database search on this. I didn't find it, but I did find where President Bush I encouraged oil companies to "show restraint" on prices after we went into Kuwait in 1990, and they listened to him.


275 posted on 04/24/2006 9:20:22 AM PDT by linda_22003
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To: from occupied ga

I recall a few years back when I was a financially struggling single person, being in line behind two LARGE women who had a cart FULL of NICE cuts of meat, and various brand name items, and LOTS of beer and wine.
They paid for all the groceries with foods stamps and pulled out some cash for the alcohol. Then, strolled out and got into a brand new Honda civic.


276 posted on 04/24/2006 9:20:22 AM PDT by Muzzle_em (taglines are for sissies)
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To: dogbyte12

Re your post #53
Your ideas make too much sense to be seriously considered in Washington. (By either party)


277 posted on 04/24/2006 9:20:29 AM PDT by BnBlFlag (Deo Vindice/Semper Fidelis)
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To: barnswallow
the demand for gasoline is inelastic (i.e. people need it no matter how much it costs),

Of course there isn't any such thing as discretionary driving is there?

those people who use it are at the mercy of cabals etc., and ordinary market principles that work well with soap or shoes or tvs or automobiles (where there is a huge variety of what to buy and a large number of manufacturers) do not apply to energy.

Oh man! I give up. Bbl kamrad. Ignore the fact that price controls have NEVER worked. Ignore the fact that the central command and control governments create economic misery for those unfortunate enough to live under them. Ignore the utter disaster that dismal Jimmy inflicted on the country the last time this bone headed idea was tried. Say, you don't happen to work for the government do you?

278 posted on 04/24/2006 9:20:38 AM PDT by from occupied ga (Peace through superior firepower)
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To: Alberta's Child; Rutles4Ever
It is worth noting that rutles4ever also wrote-

The best thing we, as Americans, can do, is conserve energy, and demand a reduction in the oil tax. And part of conserving energy is being committed to a little bit of change in our lifestyles. More refineries will be of great help, but those don't just pop up overnight, either, and there are so many environmental obstacles, it's almost impossible to get off the ground. So for the forseeable future, it's going to be up to all of us to do our part and stem the cost.

279 posted on 04/24/2006 9:21:31 AM PDT by new cruelty
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To: Fighting Irish
And we should tell Fox to give us a barrel of oil for every illegal he sends accross our border.

I said something similar to someone as a joke last week. I said we tell Fox we'll do amnesty for the illegals here, but we get gas in exchange to pay for them.

280 posted on 04/24/2006 9:21:44 AM PDT by HungarianGypsy
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