Post by Woody Williams on Aug 4, 2008 14:25:23 GMT -5
Obama Calls for Opening of Strategic Oil Reserve, Windfall Profits Tax
Barack Obama unveiled another shift in his energy policy Monday, reversing his opposition to tapping the nation’s strategic petroleum reserve as a means of lowering gasoline prices.
During a speech in Lansing, Mich., Obama said he’d like to release up to 10 percent of the 700 million barrels of oil kept in salt caverns in Texas and Louisiana. Obama also called for a revival of the windfall profits tax on oil companies.
“We meet at a moment when this country is facing a set of challenges greater than any that we have seen in generations. … And for too long, our leaders in Washington have been unable or unwilling to do anything about it,” Obama said.
Among the short-term parts of his plan, Obama said: “We should sell 70 million barrels of oil from our Strategic Petroleum Reserve for less expensive crude, which in the past has lowered gas prices within two weeks.”
Obama also called for more land to be leased in the National Petroleum Reserve in Alaska, he said “we should also tap more of our substantial natural gas reserves,” and called for collaboration with Canada to build an Alaska natural gas pipeline.
His long-term solutions included the windfall profits tax, investing in hybrid-electric technology, and renewable fuels.
The shift in Obama’s energy policy follows comments over the weekend that he would be open to limited proposals for new offshore drilling. The change drew a charge of flip-flopping from John McCain’s campaign
Earlier this year, Obama supported capping new additions to the reserve as a way to ease pressure on gasoline prices, but not specifically tapping into the reserve. In July, he said he didn’t support tapping the reserve, saying it only should be used in a “genuine emergency.”
But increasing fuel costs have led some Democrats — chiefly House Speaker Nancy Pelosi — to look to the oil reserve for fresh supplies.
Obama campaign spokeswoman Heather Zichal said that while Obama didn’t initially support tapping the reserve, he has reconsidered. “He recognizes that Americans are suffering,” she said.
Obama now supports releasing light oil from the emergency oil stockpile and replacing it later with heavier crude more suited to the country’s long-term needs, according to a campaign fact sheet. Light crude oil is easier to refine into gasoline than heavier oil.
McCain spokesman Tucker Bounds released a statement chastising Obama.
“Tapping the strategic oil reserve is not a substitute for a real plan to increase supply through additional drilling and nuclear power. The strategic oil reserve exists for America’s national security strategy - not Barack Obama’s election strategy,” Bounds said.
“The last release of oil from the strategic reserve came in response to Hurricane Katrina, but the only crisis that has developed since Barack Obama last rejected this idea 28 days ago is a slide in his poll numbers,” he added.
Obama’s windfall tax plan also took criticism from McCain’s campaign.
A new Obama ad released Monday trumpets his proposal to revive the windfall profits tax on energy companies and asserts that McCain favors tax breaks for the oil industry.
The tax would target “big oil to give families a thousand-dollar rebate,” an announcer in the ad says. Obama has pushed for such a tax to fund $1,000 emergency rebate checks for consumers besieged by high energy costs.
But McCain’s campaign released a statement Monday dismissing the tax “as more economic quackery. History shows it only decreases production at home and only makes us more dependent on foreign oil.”
Congress enacted a windfall profits tax in 1980, during an earlier era of high oil prices, but repealed it in 1988 amid concerns the tax was discouraging domestic oil development. Last year, the House approved $18 billion in new taxes on the largest oil companies, but they were blocked by Republicans in the Senate.
The new ad from the Obama campaign criticizes McCain’s energy policies.
“After one president in the pocket of big oil we can’t afford another,” says the ad, referring to President Bush’s previous work in the oil industry.
The new ad opens with a driver pumping gas. The announcer says, “Every time you fill your tank, the oil companies fill their pockets.”
Republicans were quick to pounce.
“Barack Obama’s latest attack ads shows his celebrity is matched only by his hypocrisy,” said McCain spokesman Tucker Bounds. “After all it was Senator Obama, not John McCain, who voted for the Bush-Cheney energy bill that was a sweetheart deal for oil companies. Also not mentioned is the $400,000 from big oil contributors that Barack Obama has already pocketed in this election.”
Alex Conant, a spokesman for the Republican National Committee, said Michigan Republicans planned to go to Obama’s Lansing event to pass out tire gauges engraved with “Obama’s Energy Plan.” That pokes fun at the part of Obama’s energy plan calling for people to inflate their tires to the highest correct pressure to help conserve fuel.
Obama has said recently that he would reluctantly consider accepting some new offshore oil drilling. Obama previously opposed any offshore drilling.
Lately, however, he has cited “very constructive” talks between Senate Republicans and Democrats on this issue. He praised a plan unveiled by a group of Republican and Democratic senators to permit drilling while supporting an effort to convert most vehicles to alternative fuels in 20 years.
McCain’s campaign accused the Democrat of flip-flopping. However, the Arizona Republican recently reversed his own former opposition to drilling on the Outer Continental Shelf.
Both candidates have energy proposals to reduce U.S.
dependence on oil. Obama’s was first, and its centerpiece is a 10-year, $150 billion spending plan focusing on clean coal technology, further development of plug-in hybrid cars, commercialization of wind and solar power and other measures.
McCain’s, which is called the Lexington Project, includes building 45 new nuclear power plants; offering a $300 million prize for major advancement of low-cost, plug-in hybrid or electric car technology; and “encouraging the market” in wind, hydroelectric and solar power. Both he and Obama would cut use of fossil fuels to combat climate change.
Barack Obama unveiled another shift in his energy policy Monday, reversing his opposition to tapping the nation’s strategic petroleum reserve as a means of lowering gasoline prices.
During a speech in Lansing, Mich., Obama said he’d like to release up to 10 percent of the 700 million barrels of oil kept in salt caverns in Texas and Louisiana. Obama also called for a revival of the windfall profits tax on oil companies.
“We meet at a moment when this country is facing a set of challenges greater than any that we have seen in generations. … And for too long, our leaders in Washington have been unable or unwilling to do anything about it,” Obama said.
Among the short-term parts of his plan, Obama said: “We should sell 70 million barrels of oil from our Strategic Petroleum Reserve for less expensive crude, which in the past has lowered gas prices within two weeks.”
Obama also called for more land to be leased in the National Petroleum Reserve in Alaska, he said “we should also tap more of our substantial natural gas reserves,” and called for collaboration with Canada to build an Alaska natural gas pipeline.
His long-term solutions included the windfall profits tax, investing in hybrid-electric technology, and renewable fuels.
The shift in Obama’s energy policy follows comments over the weekend that he would be open to limited proposals for new offshore drilling. The change drew a charge of flip-flopping from John McCain’s campaign
Earlier this year, Obama supported capping new additions to the reserve as a way to ease pressure on gasoline prices, but not specifically tapping into the reserve. In July, he said he didn’t support tapping the reserve, saying it only should be used in a “genuine emergency.”
But increasing fuel costs have led some Democrats — chiefly House Speaker Nancy Pelosi — to look to the oil reserve for fresh supplies.
Obama campaign spokeswoman Heather Zichal said that while Obama didn’t initially support tapping the reserve, he has reconsidered. “He recognizes that Americans are suffering,” she said.
Obama now supports releasing light oil from the emergency oil stockpile and replacing it later with heavier crude more suited to the country’s long-term needs, according to a campaign fact sheet. Light crude oil is easier to refine into gasoline than heavier oil.
McCain spokesman Tucker Bounds released a statement chastising Obama.
“Tapping the strategic oil reserve is not a substitute for a real plan to increase supply through additional drilling and nuclear power. The strategic oil reserve exists for America’s national security strategy - not Barack Obama’s election strategy,” Bounds said.
“The last release of oil from the strategic reserve came in response to Hurricane Katrina, but the only crisis that has developed since Barack Obama last rejected this idea 28 days ago is a slide in his poll numbers,” he added.
Obama’s windfall tax plan also took criticism from McCain’s campaign.
A new Obama ad released Monday trumpets his proposal to revive the windfall profits tax on energy companies and asserts that McCain favors tax breaks for the oil industry.
The tax would target “big oil to give families a thousand-dollar rebate,” an announcer in the ad says. Obama has pushed for such a tax to fund $1,000 emergency rebate checks for consumers besieged by high energy costs.
But McCain’s campaign released a statement Monday dismissing the tax “as more economic quackery. History shows it only decreases production at home and only makes us more dependent on foreign oil.”
Congress enacted a windfall profits tax in 1980, during an earlier era of high oil prices, but repealed it in 1988 amid concerns the tax was discouraging domestic oil development. Last year, the House approved $18 billion in new taxes on the largest oil companies, but they were blocked by Republicans in the Senate.
The new ad from the Obama campaign criticizes McCain’s energy policies.
“After one president in the pocket of big oil we can’t afford another,” says the ad, referring to President Bush’s previous work in the oil industry.
The new ad opens with a driver pumping gas. The announcer says, “Every time you fill your tank, the oil companies fill their pockets.”
Republicans were quick to pounce.
“Barack Obama’s latest attack ads shows his celebrity is matched only by his hypocrisy,” said McCain spokesman Tucker Bounds. “After all it was Senator Obama, not John McCain, who voted for the Bush-Cheney energy bill that was a sweetheart deal for oil companies. Also not mentioned is the $400,000 from big oil contributors that Barack Obama has already pocketed in this election.”
Alex Conant, a spokesman for the Republican National Committee, said Michigan Republicans planned to go to Obama’s Lansing event to pass out tire gauges engraved with “Obama’s Energy Plan.” That pokes fun at the part of Obama’s energy plan calling for people to inflate their tires to the highest correct pressure to help conserve fuel.
Obama has said recently that he would reluctantly consider accepting some new offshore oil drilling. Obama previously opposed any offshore drilling.
Lately, however, he has cited “very constructive” talks between Senate Republicans and Democrats on this issue. He praised a plan unveiled by a group of Republican and Democratic senators to permit drilling while supporting an effort to convert most vehicles to alternative fuels in 20 years.
McCain’s campaign accused the Democrat of flip-flopping. However, the Arizona Republican recently reversed his own former opposition to drilling on the Outer Continental Shelf.
Both candidates have energy proposals to reduce U.S.
dependence on oil. Obama’s was first, and its centerpiece is a 10-year, $150 billion spending plan focusing on clean coal technology, further development of plug-in hybrid cars, commercialization of wind and solar power and other measures.
McCain’s, which is called the Lexington Project, includes building 45 new nuclear power plants; offering a $300 million prize for major advancement of low-cost, plug-in hybrid or electric car technology; and “encouraging the market” in wind, hydroelectric and solar power. Both he and Obama would cut use of fossil fuels to combat climate change.
