US anger over $4 gasoline is producing a lot of energy-related theatrics at the White House, in Congress and on the presidential campaign trail. Republicans are demanding new drilling off the country’s beaches. Democrats want to tax away oil companies’ profits. But none of the proposals has much chance of becoming law, and motorists would feel little or no relief if they did.
President George W. Bush on Wednesday said US families are looking to Washington to help them cope with economically ravaging high gasoline costs. And he warned lawmakers that if they do not do something before the July Fourth holiday “they will need to explain” to voters.
The president outlined what he believes should be done:
Open offshore waters that have been off-limits to oil company drilling for 27 years, pump out some of the oil located in an Alaska wildlife refuge and expand the development of oil shale.
Motorists looking for relief should not hold their breath.
These actions “will take years to have their full impact,” Bush acknowledged. But he said over time they would take pressure off gas prices, by increasing production of domestic oil. In April the United States imported 13.2 million barrels of oil a day while producing about 5 million a day.
As he knew would happen, the president’s ideas were denounced by Democratic congressional leaders.
They made it clear the Bush offshore proposal — championed by House and Senate Republicans — is going nowhere. But neither is the Democrats’ answer to anger at the pump: Tax some of the “windfall” profits being made by the country’s five largest US oil companies and for good measure take away some of the tax breaks they have been enjoying. The money would be used to promote alternative energy like wind, solar and biofuels, as well as energy conservation.
Republicans have shown their dislike for the oil-tax idea, maintaining it could raise fuel prices, and they blocked it from even being brought up for a thorough debate. Democrats couldn’t get the 60 votes needed to advance their plan. And Bush promised to veto it anyway.
The two parties’ presidential candidates agree no drilling should occur in the Alaska wildlife refuge, but on little else.
Democrat Barack Obama has supported the call for a windfall profits tax on oil companies and has ridiculed suggestions that opening more offshore waters to drilling is an answer. “This is not something that’s going to give consumers short-term relief,” he said Wednesday. McCain earlier this week made ending the federal drilling moratorium a major part of his energy plan, while opposing new taxes on oil companies. Senate Republican leader Mitch McConnell said Wednesday he thought it important that Congress “show we’re fully engaged ... and ready to help in any way we can” to respond to the high gasoline prices.
“Unfortunately that means the parties will have to come together on a solution,” he added.
