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Don't Believe the Oilman-In-Chief

By Frank O'Donnell, TomPaine.com. Posted April 27, 2006.


George W. Bush would like to sell you the idea that pesky environmental regulations are keeping gas prices high.

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You know President George W. Bush's ratings are in the toilet when he starts bashing oil companies in the name of protecting what he repeatedly called "our consumers," as he did yesterday.

And you know the Party in Power -- just back from getting an earful from angry constituents about rising gasoline prices -- is shaking in its shoes at the prospect of tomorrow's profit announcement by ExxonMobil.

So the president did what a floundering politician does: he tried to change the subject.

In this case, the president made the environment a scapegoat for rising gasoline prices. He suggested a false choice -- lower prices at the pump, or dirtier air.

It was ironic that the president made his gas-price speech before the Renewable Fuels Association, since the president was citing the association's main product, ethanol, as one of the many reasons that gasoline prices have gone up. Actually, most of the price of gasoline is determined by world crude oil prices, and the presidential saber rattling over Iran hasn't helped that. But it's unlikely the president will make a speech in Tehran anytime soon.

Regarding clean air requirements, the president noted that some state officials are requesting temporary waivers of clean-gasoline standards as a means of reducing price pressure. (Pennsylvania requested a waiver earlier this week for gasoline sold in the Philadelphia area.)

A short-term waiver isn't the worst possible outcome, as long as it is extremely limited. But health and environmental groups should and will protest any effort to make long-term weakening changes to gasoline standards.

The real truth is that oil companies could have anticipated this problem and planned for it better. Instead, they are taking advantage of a situation they helped create.

Compare the following presidential myths to the reality:

Myth #1: Clean air standards must be relaxed.

Bush says:

Under federal quality -- air quality laws, some areas of the country are required to use fuel blend called reformulated gasoline. Now, as you well know, this year we're going -- undergoing a rapid transition in the primary ingredient in reformulated gas -- from MTBE to ethanol...

Yet state and local officials in some parts of our country worry about supply disruption for the short term. They worry about the sudden change from MTBE to ethanol -- the ethanol producers won't be able to meet the demand. And that's causing the price of gasoline to go up some amount in their jurisdictions.

And some have contacted us to determine whether or not they can ask the EPA to waive local fuel requirements on a temporary basis ... So I'm directing EPA Administrator Johnson to use all his available authority to grant waivers that would relieve critical fuel supply shortages. And I do that for the sake of our consumers.
The reality is:

In last year's energy bill, Congress actually eliminated the requirement that cleaner reformulated gasoline contain MTBE or ethanol. MTBE makers -- including ExxonMobil -- decided to stop shipping its product after Congress refused to give them a deal absolving these big water polluters from product liability lawsuits. But the companies have known about that congressional decision for nearly a year. They could have arranged a smoother transition to new gasoline blends. But scarcity drives up prices -- and oil profits.

Myth #2: Environmental requirements have blocked oil companies from building new refineries.

Bush says:
There has not been a new refinery built in America in 30 years.
The reality is:

In declaring that part of the problem is that we haven't built new refineries in the U.S. in decades, the president is being simply disingenuous. As he well knows from his days in the business, the big oil companies decided for economic reasons that it was more cost-effective to expand existing refineries than build new ones. In fact, they have managed those expansions to avoid a gasoline glut that could lead to lower prices.

Myth #3: Some mythical entity has created "boutique fuels" around the nation.

Bush says:
The number of boutique fuels has expanded rapidly over the years, and America now has an uncoordinated and overly complex set of fuel rules ... I want to simplify the process for the sake of our consumers.
The reality is:

Some states have adopted specialized fuels -- usually at the request of the oil industry, which has frequently argued in favor of such fuels instead of cleaner gasoline. The oil industry has frequently profited by this seeming confusion.

In last year's energy bill, Congress limited the number of future blends. But the oil industry has not offered to return any of the associated profits to consumers.

The president and Republican-led Congress could have seen the rising gas prices coming miles away. The time to worry about it was last year when they were writing the monster energy bill, loaded with subsidies to energy companies. That's when concrete steps could have been taken to wean America from its oil addiction. Instead, the president is exploiting the public's anxiety over gas prices to advance his own oil-driven energy agenda.

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Frank O'Donnell is president of Clean Air Watch.

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Good work
Posted by: nbrown on Apr 27, 2006 12:37 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Good information here, it advanced the debate a little bit. Although it would have been nice to see some actual bills cited by name to make follow-up research easier.

Big media almost never cites these things.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: Good work Posted by: Lizmv
Beyond Our Control
Posted by: ChristopherLL on Apr 27, 2006 3:49 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Because of the invasion of Iraq the oil reserves of that country and those of Iran are controlled by Shite Muslims and they have no intention of giving favor to America. China is the only country resisting sanctions on Iran because they have just signed an agreement with Iran to build an oil pipeline that would give them easy access to all that oil. It is a shorter and easier trip than massive oil tankers and thousands of mile of ocean. Unfortunately all the goverment can discuss is price gouging instead of confronting the reality of global supply/demand dynamics that are now beyond our control. If conservation (elimiating all those massive peices of metal on our highways known as SUV's) by making cars that get at least 30 miles per gallon and using alternate forms of energy are not pursued we will suffer even further what now is ineviatable; gas at 4-5 dollars a gallon.

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October Obviousness
Posted by: Roverton on Apr 27, 2006 4:00 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Maybe W will find Bin Laden hiding with a huge supply of oil. Then he can cure AIDS and cancer. All right around September.

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$4 -$5 still too cheap
Posted by: jpinder on Apr 27, 2006 7:32 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Here in Canada fuel is $1 to $1.20/ltr or $4 to $5.80/gal, I see no changes in driving habits nor purchases of smaller or more efficient vehicles. You'll see yourself when it happens in the USA, $5/gal doesn't not seem to be enough to taper off the "obssesion.

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» RE: $4 -$5 still too cheap Posted by: jpinder
Tip of the Iceberg
Posted by: NoPCZone on Apr 27, 2006 8:00 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
After getting slapped around with high Natural Gas prices this winter, residents in the states that have deregulated Energy are going to get tagged for Electric Rate increases of up to 100% this summer. All of this in addition to gas and diesel prices that go up even when the price of oil drops. Many are openly wondering if we are being played with artificial shortages, a la Enron a couple of years back.

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$100 for gas
Posted by: schmitta1573 on Apr 27, 2006 8:47 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I can't help but laugh at our government’s latest idea of giving taxpayers $100 rebate for gas. Are they serious? Is this what we pay these lame-brains for? I'm so sick of these half-backed ideas aimed at getting themselves re-elected. How about taking the $100 rebate and investing it in research for alternative energy? I'll gladly give up mine.

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» INVEST THE REBATE! Posted by: medstudgeek
» RE: $100 for gas Posted by: gar
Energy Solutions! Take Action in NYC today!
Posted by: Newt on Apr 27, 2006 9:27 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Excellent conference in NYC about peak oil, alternative energy, permaculture, local food and better public transport happening Apr. 27-29. We are seriously focused on action and practical solutions, not simply alarmism and hand-wringing.

See world-famous speakers such as James Howard Kunstler, author of The Long Emergency, Derrick Jensen, author of The Culture of Make Believe, Mike Ruppert, administrator of From the Wilderness, and Matt Savinar, administrator of lifeaftertheoilcrash.net. Only $35 a day, with special discounts available!

Go to http://www.energysolutionsconference.org/ for more information.

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Thank you
Posted by: radnar on Apr 27, 2006 9:51 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I am gratified to read this post because I have read others about the price of gasoline that completely missed the point as far as I am concerned. This one hit the nail almost square on the head.

The fact is that the prices all around the world are artificial and are manipulated for various reasons. The current one appears to be to get environmental regulations reduced or even done away with.

Follow the money is always the best policy when dealing with these people.

If they are serious about cheaper gasoline they should stop the sabre rattling towards countries like Venesuela and Iran and work with them. Iraq is proof that the moron-in-chief's strategies do not work.

Let's get real.

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» RE: Thank you Posted by: gar
Does anyone actually believe him on this?
Posted by: medstudgeek on Apr 27, 2006 11:37 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I wonder...

Also, while I'm sure the oil companies are manipulating things to drive prices up, the fact remains they're not making any more oil.

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Burn em all
Posted by: Elmowilcox on Apr 27, 2006 11:45 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I think the biggest crime in all this oil crisis bs is the fact that the oil companies(I believe Exxon-Mobil was the one used for the stat) are pocketing nearly 70% of the increase in gas prices. Injustice. The refineries are cleaning up and lining their pockets with our woes. My brother can barely afford to keep gas in his friggin Honda Civic anymore!
The chain of events as I see it? We go to war, gas goes up artificially over the FEARS that there MAY be a shortage(damn, kinda sounds like our budget in regards to most of our National Security threats doesn't it?) combined with actual losses due to our actions in Iraq(both wells being attacked and keeping the vehicles of war moving at a wopping 4 mpg). Now Dickie W Dumbass threatens Iran, creating more fear of shortages that don't exist, oil hits all time high, and Exxon laughs its big oily ass off all the way to the Bank Of America. Saddest of all to me, rather than stop making threatening statements to our providers or regulating the pricing of gasoline from our refineries, Bush put on his gasmask and cut environmental regulations(what little ones they have) to slice the price of gas by a whopping 6 cents(woohoo!!!) in my neighborhood, what's it like everywhere else people? They say if you don't stand for something you'll fall for anything. Well we haven't simply fallen here, we've have voluntarily dropped trow and bent over a table in front of our well endowed government, with Exxon execs on deck. Batter up. Congratulations America.

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» RE: Burn em all Posted by: gar
Unbelievable
Posted by: Gregor on Apr 27, 2006 7:21 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Why should Bush really care or understand the platform he is talking about? He doesn't see or understand the impact it has on everyone. He is protected in his little world. He goes and makes his speeches at his company's bidding and dusts his hands and shrugs "made it through another speech". The companies are not going to stop making profits. That is what they want to do. Their agenda is to make as much profits before the next election and someone with real balls smacks their hands with a "shame on you" restriction. The language used by this Administration has nothing to do with compassion. The language is used to create concern and anxiety and confusion. They may even be using Bush to create anger in the America people so we can be "distracted" and spend our energy uselessly spinning our wheels while they go off and smash some other country.

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Refinaries a big issue. OIL is one product, GASOLINE is another
Posted by: yellow on May 3, 2006 4:51 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Recently it was reported on Air America Radio during the Randi Rhodes Show (ya gotta love her!) that Bush offered all Four of the leading oil majors (Exxon-Mobil, Chevron-Texaco, Shell, and BP) an enormous tract of land currently occupied by a decommissioned military base in California to any one of the "big 4" who wanted to just take the land and build a new oil refinary. There would be tax holidays and the waiving of environmental restrictions along with the government land being turned over to the companies for FREE! None of the four oil majors took Bush up on the offer! If this isn't proof of restricting supply to maintain high prices I don't know what is! Oil is one commodity, Gasoline is quite another!

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