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April 28, 2006
The President's speech unfairly characterized in the media
This week the President made a major speech on Energy Policy. I would encourage everyone to actually read it. The sound bites that were snipped by the media and the talking heads that followed claimed it was a knee-jerk short term reaction. But the text reveals a much deeper program and more thought. Especially interesting is his plan to end tax breaks for certain oil industry activities noting that at these prices the public doesn't have to subsidize the industry like it has in the pasts. Here are more highlights:
Today, President Bush Discussed The Four Parts Of His Practical Plan To Confront High Gas Prices. The President's plan includes making sure consumers and taxpayers are treated fairly, promoting greater fuel efficiency, boosting our oil and gasoline supplies, and investing aggressively in alternatives to gasoline, so we can eliminate the root cause of high gas prices by diversifying away from oil in the longer term.
America Is Addicted To Oil, And An Increasing Amount Of The Oil We Need Comes From Foreign Countries. Some of the nations we rely on for oil have unstable governments or agendas hostile to the United States. These countries know we need their oil, and that reduces our influence. We must not allow America to be put at risk by the unfriendly leaders of foreign countries.
It Is Important To Understand Why Gas Prices Are High. The market for oil is global, and America is not the only large consumer. Countries like China and India are consuming more and more oil, so global demand for oil is rising faster than global supply. As a result, oil prices are rising around the world, which leads to higher gas prices in America. America's gasoline demand is projected to increase this summer, and our refining capacity is stretched tight, making it difficult for supply to keep pace with demand. To compound the problem, we are undergoing a rapid change in our fuel mix - a transition from MTBE to ethanol in certain fuel blends, and that transition is temporarily pushing up gas prices even more.
Posted by Martin at April 28, 2006 1:19 PM
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