Thursday, April 28, 2011

Republicans put heat on Obama over oil prices

House of Representatives Speaker John Boehner announces a budget deal in the Capitol in Washington April 8, 2011. REUTERS/Kevin Lamarque

House of representatives speaker John Boehner announces a budget deal in the Capitol building in Washington, April 8, 2011.

Credit: Reuters/Kevin LamarqueBy Richard Cowan

WASHINGTON | Wed april 27, 2011 1: 04 am EDT

WASHINGTON (Reuters)-Americans angry about rising gasoline prices, Republicans in Congress want to blame one person fix when they return from recess next week: President Barack Obama.

Congress wrapped up his latest work session on 15 April with Democrats and Republicans in a sizzling debate on budget deficits and the size of the Federal Government.

Now, Republican leaders in the House of representatives want to turn to another issue of hot-button: high gasoline prices that consumers who are already struggling to recover from a prolonged recession hit.

"Running on empty: Obama administration does nothing to address skyrocketing gas prices," screamed a press release on Tuesday, House Speaker John Boehner's office.

The Republicans focus on energy comes as the national retail price for regular gasoline $ 3.88 per gallon, more than $ 1 per gallon more than a year ago.

Gas Pump sticker shock could be worse if the looming U.S. summer season driving demand for gasoline hikes and political turmoil in the Middle East oil-producing countries.

All this has U.S. motorists worried that gasoline prices could approach the record-high $ 4.11 per gallon of July 2008.

Boehner the movement to a bull's-eye on petrol prices also comes as public opinion polls Show against Republican initiatives that would further tax cuts for the wealthy while making seniors pay more for health insurance.

A CBS News/New York Times poll, for example, found that 61 percent of people think Medicare coverage for the elderly is worth the cost. Meanwhile, 45 percent said military spending should be cut while only 21 percent favored Medicare cuts.

When Congress resumes next week, the Republican-led House will bring to a vote at least one bill aimed at strengthening domestic energy production.

"If gasoline prices close to $ 4 per gallon, which is part of the conversation," said Spencer Pederson, a spokesman for the House Committee on natural resources.

Doc Hastings, Chairman of that Committee, leads Republican efforts to expand U.S. offshore oil drilling while easing industry regulations--moves that are expected to be blocked by Obama and his fellow Democrats in the Senate.

' LOST ' OIL

The Republicans believe that Obama falsely stood in the way of offshore oil drilling because of safety concerns after last year's BP oil spill in the Gulf of Mexico.

Gulf of Mexico oil output will decrease by 190,000 barrels per day in 2011, according to the Energy Department forecasts.

"Who has lost oil on the world market," leads to higher prices, Pederson said. This amount, however, is only a stain of the estimated 1.52 million barrel per day increase in global demand this year.

The 2012 presidential and Congress elections 18 months away, but they already dominate the Washington dynamics.

On Monday predicted House Speaker John Boehner, interviewed by ABC News, not that Obama would win a second term as gasoline prices increase to $ 5 or $ 6 a gallon.

While the White House would argue with that assessment, Democrats are concerned rising energy prices could undermine the US economic recovery and pain Obama the re-election chances.

Obama said in an interview with a radio station in Virginia on Tuesday, his Government was "conversation with oil producers around the world and letting them know that it is in their interest to ensure that high oil prices do not end up hurting the economy of the world."

Oil-producing countries, he said, should ramp up their production to moderate gasoline prices.

Obama also urged Congress to end oil and gas industry tax breaks that cost billions of dollars.

Senator Charles Schumer, one of the top-ranking Democrats, back up the call Obama say: "these subsidies are a relic of a time when oil was $ 17 per barrel and oil companies need incentives to drill. That time is long over. "

Oil prices are now about $ 112 a barrel.

Obama's request to Congress came after Boehner said that "we have to" look at the billions of dollar subsidies for oil companies and that these companies "should pay their fair share in taxes."

But by Tuesday, it was less clear whether Boehner really wanted to switch gears and consider the Republican oil company subsidies.

"We will look at a reasonable policy that lowers gas prices. Unfortunately, what the President has proposed would simply raise taxes and increase the price at the pump, "said Boehner spokesman Michael steel.

(Edited by Laura MacInnis)


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