Obama calls on Congress to end oil subsidies
March 29th, 2012
12:08 PM ET

Obama calls on Congress to end oil subsidies

Speaking from the White House Rose Garden, President Obama called on Congress to cut subsidies to the oil industry:

Right now, the biggest oil companies are raking in record profits –- profits that go up every time folks pull up into a gas station. But on top of these record profits, oil companies are also getting billions a year - billions a year in taxpayer subsidies -– a subsidy that they’ve enjoyed year after year for the last century

The Senate is expected to vote on a measure that cuts certain subsidies later Thursday. While it's future remains uncertain, the president has increasingly discussed the issue of energy as gas prices rise at the pump:

It’s not as if these companies can’t stand on their own. Last year, the three biggest U.S. oil companies took home more than $80 billion in profits. Exxon pocketed nearly $4.7 million every hour. And when the price of oil goes up, prices at the pump go up, and so do these companies’ profits. In fact, one analysis shows that every time gas goes up by a penny, these companies usually pocket another $200 million in quarterly profits. Meanwhile, these companies pay a lower tax rate than most other companies on their investments, partly because we’re giving them billions in tax giveaways every year.

Obama's full remarks after the jump:

THE PRESIDENT: Thank you very much. (Applause.) Everybody, please have a seat. Sorry we’re running just a little bit behind, but I figured it’s a great day to enjoy the Rose Garden.

Today, members of Congress have a simple choice to make: They can stand with the big oil companies, or they can stand with the American people.

Right now, the biggest oil companies are raking in record profits –- profits that go up every time folks pull up into a gas station. But on top of these record profits, oil companies are also getting billions a year - billions a year in taxpayer subsidies -– a subsidy that they’ve enjoyed year after year for the last century.

Think about that. It’s like hitting the American people twice. You’re already paying a premium at the pump right now. And on top of that, Congress, up until this point, has thought it was a good idea to send billions of dollars more in tax dollars to the oil industry.

It’s not as if these companies can’t stand on their own. Last year, the three biggest U.S. oil companies took home more than $80 billion in profits. Exxon pocketed nearly $4.7 million every hour. And when the price of oil goes up, prices at the pump go up, and so do these companies’ profits. In fact, one analysis shows that every time gas goes up by a penny, these companies usually pocket another $200 million in quarterly profits. Meanwhile, these companies pay a lower tax rate than most other companies on their investments, partly because we’re giving them billions in tax giveaways every year.

Now, I want to make clear, we all know that drilling for oil has to be a key part of our overall energy strategy. We want U.S. oil companies to be doing well. We want them to succeed. That’s why under my administration, we’ve opened up millions of acres of federal lands and waters to oil and gas production. We’ve quadrupled the number of operating oil rigs to a record high. We’ve added enough oil and gas pipeline to circle the Earth and then some. And just yesterday, we announced the next step for potential new oil and gas exploration in the Atlantic.

So the fact is, we’re producing more oil right now than we have in eight years, and we’re importing less of it as well. For two years in a row, America has bought less oil from other countries than we produce here at home -– for the first time in over a decade.

So American oil is booming. The oil industry is doing just fine. With record profits and rising production, I’m not worried about the big oil companies. With high oil prices around the world, they’ve got more than enough incentive to produce even more oil. That’s why I think it’s time they got by without more help from taxpayers who are already having a tough enough time paying the bills and filling up their gas tank. And I think it’s curious that some folks in Congress, who are the first to belittle investments in new sources of energy, are the ones that are fighting the hardest to maintain these giveaways for the oil companies.

Instead of taxpayer giveaways to an industry that’s never been more profitable, we should be using that money to double-down on investments in clean energy technologies that have never been more promising - investments in wind power and solar power and biofuels; investments in fuel-efficient cars and trucks, and energy-efficient homes and buildings. That’s the future. That’s the only way we're going to break this cycle of high gas prices that happen year after year after year. As the economy is growing, the only time you start seeing lower gas prices is when the economy is doing badly. That’s not the kind of pattern that we want to be in. We want the economy doing well, and people to be able to afford their energy costs.

And keep in mind, we can’t just drill our way out of this problem. As I said, oil production here in the United States is doing very well, and it's been doing well even as gas prices are going up. Well, the reason is because we use more than 20 percent of the world’s oil but we only have 2 percent of the world’s known oil reserves. And that means we could drill every drop of American oil tomorrow but we’d still have to buy oil from other countries to make up the difference. We’d still have to depend on other countries to meet our energy needs. And because it’s a world market, the fact that we’re doing more here in the United States doesn’t necessarily help us because even U.S. oil companies they’re selling that oil on a worldwide market. They’re not keeping it just for us. And that means that if there’s rising demand around the world then the prices are going to up.

That’s not the future that I want for America. I don’t want folks like these back here and the folks in front of me to have to pay more at the pump every time that there’s some unrest in the Middle East and oil speculators get nervous about whether there’s going to be enough supply. I don’t want our kids to be held hostage to events on the other side of the world.

I want us to control our own destiny. I want us to forge our own future. And that’s why, as long as I’m President, America is going to pursue an all-of-the-above energy strategy, which means we will continue developing our oil and gas resources in a robust and responsible way. But it also means that we’re going to keep developing more advanced homegrown biofuels, the kinds that are already powering truck fleets across America.

We’re going to keep investing in clean energy like the wind power and solar power that’s already lighting thousands of homes and creating thousands of jobs. We’re going to keep manufacturing more cars and trucks to get more miles to the gallon so that you can fill up once every two weeks instead of every week. We’re going to keep building more homes and businesses that waste less energy so that you’re in charge of your own energy bills.

We’re going to do all of this by harnessing our most inexhaustible resource: American ingenuity and American imagination. That’s what we need to keep going. That’s what’s at stake right now. That’s the choice that we face. And that’s the choice that’s facing Congress today. They can either vote to spend billions of dollars more in oil subsidies that keep us trapped in the past, or they can vote to end these taxpayer subsidies that aren’t needed to boost oil production so that we can invest in the future. It’s that simple.

And as long as I’m President, I’m betting on the future. And as the people I’ve talked to around the country, including the people who are behind me here today, they put their faith in the future as well. That’s what we do as Americans. That’s who we are. We innovate. We discover. We seek new solutions to some of our biggest challenges. And, ultimately, because we stick with it, we succeed. And I believe that we’re going to do that again. Today, the American people are going to be watching Congress to see if they have that same faith.

Thank you very much, everybody. (Applause.)


Topics: President Obama

soundoff (86 Responses)
  1. B

    Waste of time, the GOP is already owned body and soul by Oil Companies.

    March 29, 2012 at 12:49 pm |
    • John

      The Senate rejected this today. The majority in the Senate is..... Dems.
      Keep pointing fingers "B". It seems to be a qualification to be president.

      March 29, 2012 at 1:05 pm |
      • 1FreeWorld

        I was attacked by folks that I was trying to help in a Snow Storm!

        They were young, and black.

        Another time I was attacked when I went to a 7-11.

        They were young, and white.

        Youth (YOUTH) cannot Run Free and ATTACK FOLKS!

        The YOUTH need to be CONTROLLED BY THEIR PARENTS!

        If he YOUTH cannot be controlled by their parents, then the PARENTS NEED TO GO TO JAIL,,,
        or lose their kids to VIOLENCE!!!!

        March 29, 2012 at 9:36 pm |
      • John

        1 free world – Were those children getting oil subsidies from the governmnet?

        March 30, 2012 at 6:38 am |
      • Michael

        Yes the senate has a Democratic Majority and they all voted for the removal of the subsidies but not one single Republican voted for it. If it was a simple majority that could make it so it would have been done. You are being disingenuous when you try to blame the Dems. You know it is the Repubs that are responsible for the loss of this bill.

        March 30, 2012 at 10:05 am |
      • John

        Michael, you are wrong. If all the dems voted for yes it woud have passed. They did not, that is the reason it didn't pass.
        Why would the repubs vote for something they think is wrong and would have increased the price of gas for every American?
        I am ticked off that China has surpassed Exxon while the current administration is floundering and people like you are trying to defent them. Even you have to agree that America would be much better off if we didn't need to depend on foreign oil. If we would drill more we could be totally independent, as evidenced by what China just did.

        March 30, 2012 at 11:52 am |
    • t

      mmmmm Kool-Aid

      March 29, 2012 at 2:44 pm |
    • hvlock

      you use the word owned, I use the word bribed, how do you think they got so rich.
      the fight for the house or senate is a fight to get richer. and who will stop them? they monitor themselves.
      Washington D.C. is the Seat of Corruption of the world.

      March 30, 2012 at 8:46 am |
  2. rightytighty

    What about farm subsidies? Now that Obama has dismissed the proven economics rules of supply and demand as no longer valid for the global market. Whats the purpose of paying American farmers NOT to produce more corn and wheat?? Hmmmmmm.....

    March 29, 2012 at 1:05 pm |
    • mms55

      the smartest thing we can do for our children is to find green renewable energy and auto's that run on them.some day oil will run out and our children will be fighting other country's for this oil and i don't want my children,grand children etc. fighting for oil.if you love your children you would fight for green energy not fossil fuels that will evevtually run out.i don't mind fighting for freedom but i refuse to fight for oil,i love my family more than i love oil.

      March 29, 2012 at 2:40 pm |
      • John

        The smartest thing we can do right now is drill in this country.

        March 29, 2012 at 2:47 pm |
      • The REAL Truth

        John, we ARE drilling. There's 44+ rigs in the gulf now, vs 24 when the BP spill occurred. We are NOT drilling on the 900 Million LEASED Federal acres because we are PAYING big oil NOT TO DRILL. Besides, if they found oil, it would drop the price (maybe a little) and that is not good business. Why drill for potentially less gain, when you are already getting paid not to!

        March 29, 2012 at 3:07 pm |
      • jean2009

        Exactly the smartest thing we can do is go all out for green, self-sustaining, renewable energy...wind. solar, wave, gas and biofuels. All of the above.
        We need to quit funding tax subsidies for big oil, and concentrate that money on renewable energy.
        We can do this...but we will need to leave the GOP behind.

        I suggest we use land already set aside for medium strips, shoulders, and utility right away along highways which could be used for solar trees and wind turbines. Even solar trees along city streets.
        Look at these solar trees in Vienna and Mexico City.
        http://inhabitat.com/ross-lovegrove-solar-trees-take-to-the-streets-of-vienna/

        http://www.smartplanet.com/blog/global-observer/-8216solar-trees-shine-on-mexico-city/3239

        http://www.wired.com/gadgetlab/2011/08/boy-genius-13-year-olds-solar-tree-produces-50-more-power/

        March 29, 2012 at 4:35 pm |
      • John

        Jean, you libs (and BO) are totally wrong on this issue. China set a goal and they met it while our current administration and the previous one were left at the gate. It is telling that on the day China Oil overtakes Exxon (American Oil) the president comes out and bashes Exxon. If the president got his way we would all be paying much more for gas, food, etc. We know that is his ultimate goal so he can shove his agenda down the throats of working Americans.
        China is cleaning our clock on this issue, the green issue and the overall economy. They took 15 years to overtake Exxon as the largest producer in the world. If we wait 25 years for green energy to "catch up" we will be so far behind China our economy will never get much better than it is today.

        March 30, 2012 at 6:47 am |
      • John

        We are not drilling enough. It is sad that China was able to overtake Exxon in less that 15 years at the same time they are leading the world in green energy development. The current and previous administrations have screwed the American people with their actions and their lies.

        March 30, 2012 at 8:40 am |
    • jean2009

      You should be accurate and ask why we should support Fortune 500 companies and members of Congress with farm subsidies for not growing crops they never planned to plant in the first place?
      They are more accurately Farm Subsidies For the Rich and Famous at the Federal Trough.

      http://www.heritage.org/research/reports/2004/05/another-year-at-the-federal-trough-farm-subsidies-for-the-rich-famous-and-elected-jumped-again-in-2002

      March 29, 2012 at 4:22 pm |
      • Randy

        You are an ignorant individual. Going green will take this country 25 years before green technology can be implemented on the scale you are suggesting. I am for alternative energy but you can't convert overnight. Green cars, green factories, all will be many years in the future. In the mean time more oil and natural gas needs to be produced, while the alternatives are being explored. More drilling needs to be done so this country can be self sufficient, while alternative methods are being explored. I myself want the price of gas to remain as low as possible. That means subsidiizing oil companies will help me and other American citizens to keep as much of my pay check as possible in my pocket. I say stop subisiizing Apple, GE, and other companies who get the same subsidies as the oil companies. Subsidizing Apple does nothing for the American people.

        March 29, 2012 at 8:40 pm |
      • John

        Nice post Randy. But, it doesn't matter to these libs what is written. To them it is all about reelecting BO and forwarding the socialist agenda.
        Maybe us working people can get back on track after Obamacare is struck down. Even libs should be upset that BO spent 2 years making our healthcare system much worse than when he entered office. Not to mention the costs involved related to prep work for companies trying to get ready for this boondoggle of a law. To top it all off I read yesterday how this administration is going forward and hiring 4000 new IRS employees now to help manage the future healthcare mess. This administration is so arrogant and focused on their faulty agenda to radically change this country into Entitlement Nation (if we aren't there already).

        March 30, 2012 at 7:03 am |
      • jean2009

        @ Randy, I think you are the one who needs an education on this subject.

        FYI It took this country 8 years from having almost nothing in the way of a space program to putting a man on the moon. With renewable and green energy we are a lot further ahead than we were with the space program. Plus, other more focused countries are diligently pursuing green technology, and are already proving it can be done....are doing it...and are leaving us eating their dust.

        On this subject we have far too many lame brains and naysayers who want to whine and not pursue what we obviously must do. Just to be even with some other countries we should have listened to Jimmy Carter 30 years ago.

        Also FYI most Democrats have jobs, pay their own taxes, health insurance premiums, and pay their own way. What is your point since most welfare and food stamps go to those Republican red states?

        BTW...it is spelled "conservative"

        Subsidizing oil does not do anything to control the price you pay at the pump. We should end that fiasco and put that money toward getting us off foreign oil...with only 2% of the world oil reserve we cannot drill our way out of the price we pay at the pump. So NO Oil Subsidies do not equal a lower price for gasoline.

        Logic should tell you that subsidizing companies where we only have 2% of the world's oil reserve is going to do nothing toward controlling the price of gasoline. Those countries which make up the ownership of the other 98% of the world's oil reserve are going to be the countries that set the price we pay. Do the math providing you are capable.

        I would also suggest reading a book which can be found on Amazon it is: "Perverse Subsidies: How Misused Tax Dollars Harm the Economy and Hurt the Environment" – Norman Myers and Jennifer Kent.

        March 30, 2012 at 2:43 pm |
      • John

        Jean, China has proven you and the president totally wrong on this issue. They lead the world in developing green energy while at the same time they overtake the world.
        Also, even the most aggressive "green energy" plans I have seen from this administration still have us at 80% oil by 2050 (if all goes according to plan).

        March 30, 2012 at 3:01 pm |
  3. techno777

    What about the price of food. It has gone up more then gas and no one is discussing this problem.

    March 29, 2012 at 1:50 pm |
    • C-Lo

      techno777...
      where do you think the energy to harvest, process and transport the food comes from? Upticks in oil/gas/gasoline/coal prices have a terrible ripple effect throughout the economy. If the farmer is paying more for gasoline for his tractor, the processor is paying more for the heating and lighting provided by gas and coal, the transporter is paying more for gasoline to move the product, where do these costs end up? That's right, at the grocery checkout lane.

      Go ahead and end oil subsidies, but instead of reallocating it among more gov't programs, refund it to us so we can afford the hyperinflation that will result, and refund it proportionately according to how much we are paying the gov't in taxes, as it's those taxes that are subsidizing it in the first place.

      March 30, 2012 at 2:16 pm |
      • jean2009

        George W. Bush's rebates to individual taxpayers only caused a deeper recession. He would have been wiser and provided more long term cost control benefits had he used that money to research ways to make us all less dependent on foreign oil...such as alternative fuels.

        "Oh let's send everyone a rebate tax refund and let them buy gasoline!" WRONG! Logic is that does not over the long term solve the basic problem of the cost for buying foreign oil. It is shortsighted...like too many of his wrong way policies. He was a shoot from the hip gunslinger that only shot us all in the foot.

        Getting us up, running and off foreign oil is the smarter move, which over the long haul cuts the cost.

        April 1, 2012 at 3:23 pm |
      • 1FreeWorld

        @Jean2009

        You said:

        "George W. Bush's rebates to individual taxpayers only caused a deeper recession. He would have been wiser and provided more long term cost control benefits had he used that money to research ways to make us all less dependent on foreign oil...such as alternative fuels."

        Your statement agrees with most Free-World, Free-Market, Free-Nation, Freedom Loving Folks!

        Here in the USA,
        we ALL,,,
        we ALL would like to be,,,
        (Drum roll,,,)
        LESS-DEPENDANCIES on FOREIGN OIL!

        So LET US ALL

        HOPE

        the current occupier of the White House

        CHANGES

        his anti-USA policies for
        ALL FUELS,
        and especially on his
        ANTI-
        DRILLING FOR OIL,
        Mining for Coal,
        Mining for Uranium, and the other
        ANTI-ALTERNATIVE FUEL Policies,
        and,,,

        OPEN UP THE FEDERAL LANDS to

        the PRIVATE SECTOR,,,

        TO OBTAIN ALL THE

        ALTERNATIVE FUELS,
        URANIUM, OIL, GAS, SOLAR, ALGAE, and COAL
        here in the USA

        here in the USA,,,,

        to GIVE JOBS to AMERICAN's Jobless,,,
        and,
        to LOWER THE PRICE OF GAS so that the AMERICAN WORKERS and JOBLESS
        can get
        to their JOBS in their CARS
        and,
        TO GET OFF THE USA's DEPENDANCY on FOREIGN OIL !!!!

        Thank you Obummer for $4.00+,,,err, Going on $5.00+++ a Gallon Gasoline,,,,

        DRILL BABY DRILL
        (In the USA
        and
        get off the DEPENDANCY OF FOREIGN OIL !!!!)

        And be kind to our Neighbors!
        Open the Pipeline!

        April 1, 2012 at 8:52 pm |
      • C-Lo

        Fine Jean...then take the subsidies rebated to you and if you want to invest in "green energy development", then give your money to a clean energy firm directly...I'll use mine to afford the higher costs of all the goods and services that will result–I have no problem with that. But don't pretend that shifting that additional money to Solyndra et al will result in the US becoming an oil/coal free nation in the next decade or even the next 50 years.

        April 2, 2012 at 9:58 am |
      • C-Lo

        By the way jean...who do you think those GWB rebates helped the most? low income folks who live on $100/month in groceries could now get the latest cell phone (don't remember if the iPhones were out then, but don't think so) and a couple months of phone service. they could also afford new rims on their cars...those of us more fortunate were able to use it to go out to eat a little more or buy more frivoulous stuff supporting the minimum wage workers and restaurant industries.

        Invest it in clean energy and watch all the $20,000/year households run out and buy a $40,000 Volt. (dripping with sarcasim)

        April 2, 2012 at 2:41 pm |
  4. d

    Here is the real deal thats not gettin any press & for the life of me I cant figure out. Look this Keystone thing is GONNA happen. The Prez is fightin hard viciously to have 100% of that supply stay in America. He gets hammered by the right SEVERLY about not doing anything about the rising fuel prises. The Press needs to CALL OUT the crocket members of congress / oil mongers who are up to shipping the oil back out of this Country. Can a brother get a REAL journalist all up in this?

    March 29, 2012 at 3:12 pm |
    • jean2009

      Actually we currently purchase the largest percentage of Canadian oil products...but they are tired of being a captive seller to one buyer. What they want to do with the Keystone pipeline is ship their oil to the International duty-free zone at Port Arthur, Texas where it can be sold U.S. tax free to the highest bidder on the world market.

      The highest bidder would be China or India..not us. Koch Brothers have a vested interest in Keystone.

      Were it not for George W. Bush's depression we would already be paying more than $5 per gallon for gasoline. It was a national average of $4.21 in August 2008...but then the economy tanked but as jobs come back and demand again increases the price for gasoline will rise.

      We can't control the price of something when we only own 2 % of the world reserves. Time to start being creative with other forms of energy.

      March 29, 2012 at 4:45 pm |
  5. jerry

    obama is banking on your ignorance. Raise taxes on oil and watch the price of oil increase...and the gas prices are already sucking billions out of the economy. obama muffed the Iranian situation when he refused to support the Green up rising...thinking he could deal with the Mullas on the nuke issue (a purely narcissistic attitude)...he has in fact muffed the middle east relations entirely, and this is the cause of increasing oil prices. He (obama) thought he would safely have this next election behind him before the stuff was on the fan....now he is dealing under the table with Russia on arms reductions...after already selling out eastern european defense... this guy (obama) sells out America and her allies every time he opens his mouth...and the voting public is getting this in spades...obama is now a lame duck and the world knows it...that is save France who is now nearing elections and a move further to the left (now socialist)...

    March 29, 2012 at 3:23 pm |
    • The REAL Truth

      Jerry, the GOP is counting on your ignorance too. Looks like they got it. Do a little research and check out some FACTS – not that stuff that you get from the Faux channel, but real FACTS. You'll find that the GOP wants to keep folks like you dumb and happy. It's to their advantage that you don't vet the misinformation and spin you are being fed. Reality is that the GOP has never done a darn thing for the people of this country, other than those that put them there – the 1%.
      Who complains loudly about not being able to drill, baby drill. Who put that legislation in place. The Bush administration. Who blocked the Senate vote on Oil Subsidies.. the GOP ! Why? Because we have the best politicians money can buy, and they do what their masters tell them.

      March 29, 2012 at 5:42 pm |
      • Randy

        You are incorrect, Obama is the one counting on the ignorance of the liberal democratic party. Most concervative replublicans have jobs, pay for their own insurance and are self reliant. The liberal dems are the ones looking for a handout and that's why they follow a liar, believing every word that comes from his mouth, even though only a small portion of his rhetoric is truthful. Tell me why he wants to stop subsidizing the oil companies, a product we all need, but wants to increase the subsidies of Apple and GE, whom the population in general does not need.

        March 29, 2012 at 8:45 pm |
      • John

        What is your issue with Fox? If you can be a little specific maybe I can address your faulty assumptions. Do you watch MSDNC or CNN, NBC?
        Here is an example for you. Last night on CNN they showed Biden's Dr. Pepper gaffe and said how we are use to these from Biden so we don't really pay attention to them. Then they spend 15 minutes on a segment on gaffes Romney has made which included 3 left leaning commentators. Fox has never been this bias.

        March 30, 2012 at 7:11 am |
  6. The REAL Truth

    d – you are correct. NONE of the oil going into the XL Pipeline (Canadian and Mid-west sources) is destined for the US. Canadians want it so they can get a better price and faster delivery of their EXPORTED product from the buyer. The OIL will be EXPORTED from Port Arthur, not refined and used internally. And.. this will also increase the cost of gas in the Mid-West as the refined product will need to be shipped back up there... How is this good for the american consumer ?

    March 29, 2012 at 3:25 pm |
  7. Sponge-Bob

    More political grandstanding, that's all this is.

    March 29, 2012 at 4:48 pm |
  8. Randy

    If Obama ends the tax subsidies for oil companies the price of gas will go even higher. Apple industries is the largest company in the world, even larger than Exxon/Mobil but receives the same subisidies as the oil companies. Obama is wanted to end the subsidies for the oil companies but increase the subsides for Apple. Now how does that make any sense?

    March 29, 2012 at 5:01 pm |
    • jean2009

      It will go higher regardless.

      March 29, 2012 at 5:05 pm |
      • Randy

        Yes, the price of gas will probably rise regardlesss, but not rise as much as it will if the subisides are ended. This is just proof of Obama's war on oil and and the American citizens pocketbook. Everyone needs gas, but we don't all need an IPad. This is just Obama propaganda. God willing we'll only have a few more months to worry about his socialist agenda.

        March 29, 2012 at 5:21 pm |
      • The REAL Truth

        Randy – you are totally clueless! Sorry, but Obama has NO war on oil or the American citizens pocketbook. What you "believers" fail to realize is that you are being fed garbage and misinformation. The might right is losing money while Obama is in office and they don't like it. They have the lowest tax rate in history and still want more. The only class warfare is GOP perpetuated and folks like you are lapping it up, hook line and sinker. I really feel sorry that you can't see past the veil.

        March 29, 2012 at 5:35 pm |
      • mikle

        I AGREE WITH RANDY 100%. OBAMA TRY TO DAMAGE USA IN ANY WAY HE CAN. HE TRY TO DESTROY USA. THIS WHAT I BELIEVE.

        March 29, 2012 at 8:12 pm |
      • jean2009

        @Randy & mikie
        Even if we drilled and had the technology to extract every ounce of our 2% of the world's oil reserve, we still would not be the country setting the price at the pump for oil. Them that have the other 98% are the ones who set the price.

        Fact is: Every country that drills (even the United States) sells there oil on the World Market. World demand and access to markets sets the price at the pump. Had it not been for George W. Bush's fiasco of a depression we would already be at (or over) $5 per gallon. The national average price for gasoline was $4.21 per gallon in August 2008...but with the depression the demand evaporated...no one was driving. Now the economy is turning around demand is increasing so the price will go up.

        March 30, 2012 at 3:00 pm |
      • C-Lo

        And jean, if that is true (which it is), then why the fuss over the Keystone pipeline oil being shipped to China? As all the world's oil is opened and supplied to the market and priced based on world supply/demand and grade, does it really matter if Canadian dirty oil sand oil is dammed up in the US for use or sent to China? You railed against the idea that the oil from Canada was destined to China, but now here claim (correctly) that every oil producer sells "there" sic. oil in the world market.

        I have come to believe you are nothing but a mouthpiece for leftist bloggers like Koz and Huffing and Puffing, i.e. just a leftist "Howard."

        April 2, 2012 at 11:54 am |
  9. arale norimaki

    the gop is going to mad.

    March 29, 2012 at 5:21 pm |
  10. Church

    It’s about time the word got out that the Koch brothers are trying to take over America.
    They hate everything that is democracy.
    Do your research to find out how much money they have spent to circumvent the democratic process.
    And why should we not vote with our money? The Republican Supreme Court ruled (nice term) that Money is Speech.
    I think the public would be less inclined to believe the specious rhetoric about Obama’s policies if they knew that all this opposition is being orchestrated by one man to increase his own fortune, billionaire David Koch — The Man Who Would Be King.

    March 29, 2012 at 6:02 pm |
  11. Sponge-Bob

    Obama's budget was voted down 414-0 in the house, not even one Dem voted for it.

    March 29, 2012 at 6:13 pm |
  12. Navyvet8192

    What we need to do is federalize the oil and gas production within our borders like many of the Middle Eastern and Central American oil producers do. The oil companies can profit on any oil that is extracted overseas, but oil in the US should be for US citizens 1st and excesses sold at a profit to reduce the cost for us here in the US. That is why countries like:
    1. Venezuela 12 cents
    2. Iran 40 cents
    3. Saudi Arabia 45 cents
    4. Libya 50 cents
    5. Swaziland 54 cents
    6. Qatar 73 cents
    7. Bahrain 81 cents
    8. Egypt 89 cents
    9. Kuwait 90 cents
    10. Seychelles 98 cents
    and yes, that's per gallon!

    See, those who produce oil, set their own prices for gas. It's not hard, it's called look out for yourself 1st! Something the US has lost it's ability to do.

    March 29, 2012 at 8:51 pm |
    • C-Lo

      Great idea navyvet. Now tell me which of the tyrannical regimes of each of these nations do you most prefer to live under?

      March 30, 2012 at 2:21 pm |
    • C-Lo

      PS take a look at those costs based on cost of living for the average joe (or Jamil for most of the countries), and also with whom the money resides. The only difference between there and here is that the oil tycoons influence the gov't (the ENTIRE gov't) we elect and there the oil tycoons are the unelected gov't.

      March 30, 2012 at 2:26 pm |
    • jean2009

      Yes, and the bulk of countries you just listed own the bulk of the world's oil reserves. Plus Canada and Russia own a large percentage of the world reserve although some of theirs is not as accessible. I don't see them on your list? We however own 2% of the world reserve and a lot of that is not accessible.

      As much as all the complainers keep knocking going green...the fact is the United Arab Emirates one of the world's richest oil countries is concentrating on going green and researching alternative fuels.

      http://greentechno.ae/almamzar.html

      http://www.iisd.ca/ymb/energy/wfes/wfes2012/html/ymbvol187num8e.html

      Makes one wonder about our current level of intelligence. Everyone sees the light except for the brainwashed GOP right.

      March 30, 2012 at 3:21 pm |
  13. D_real22

    Its soooo sad that just couple of years ago the Republicans wanted to get rid of oil subsidies, now because President Obama says they should vote to get rid of it they wont do it...the Oil Companies admitted they dont even need the subsidies.

    March 29, 2012 at 9:11 pm |
    • FLIndependent

      Yes, Rachel Maddow showed many of the Repubs saying they wanted to cut the oil subsidies in the Bush years, but, as with everything else, since Obama wants to do so, they now don't. They are such hypocrites and are really the ones destroying us since they won't cooperate with Obama and the Dems no matter what. It's treasonous if you ask me.

      March 30, 2012 at 3:21 pm |
  14. Howard's Daddy

    Why are we subsidizing a bunch of billionaires? Are we really this stupid? Why did the Republicans vote this down if they are so against government messing with free markets? Yet another case of going against Obama even if means goes against your principles. Obama is not the only one guilty of political posturing here.

    March 29, 2012 at 9:54 pm |
    • John

      You are getting there. At least you think BO is "partially responsible".

      March 30, 2012 at 8:46 am |
      • jean2009

        That is not what Howard's Daddy said.
        Isn't the GOP supposed to be against the Welfare State? Or, is that only unless it is Welfare for the Rich?

        March 30, 2012 at 3:48 pm |
  15. george of the jungle

    doing away with subsidies will not raise prices like the gop says. But they will not let the oil lobby down . The repos need them.Why are we subsidizing an industry that needs no help? The repos have no more control over oil prices than the president. Obama 2012

    March 29, 2012 at 11:11 pm |
    • John

      Right – tell it to China. They just made BO and his energy policy look like crap.

      March 30, 2012 at 8:44 am |
  16. Anna

    There are times I think Obama couldn't possibly do anything more dumb than his last song, speech and on and on ad nauseum and then he comes out swinging with this nonsense. Obama – if the tax breaks are taken away who the heck do you think is going to make up for them ...... now think about it ........ oh never mind, it will be us the people who actually buy the gas!!!!!! Now quit dilly dallying around and start using OUR own oil, ddrill for it on federal land and off the coast, we have enough for 200-300 years and I'm sure in that amount of time, the private sector will come up with alternative fuels, quit jamming expensive losers down the American taxpayers throat

    March 30, 2012 at 12:58 am |
  17. Navyvet8192

    What we need to do is federalize the oil and gas production within our borders like many of the Middle Eastern and Central American oil producers do. The oil companies can profit on any oil that is extracted overseas, but oil in the US should be for US citizens 1st and excesses sold at a profit to reduce the cost for us here in the US. That is why countries like:
    1. Venezuela 12 cents
    2. Iran 40 cents
    3. Saudi Arabia 45 cents
    4. Libya 50 cents
    5. Swaziland 54 cents
    6. Qatar 73 cents
    7. Bahrain 81 cents
    8. Egypt 89 cents
    9. Kuwait 90 cents
    10. Seychelles 98 cents
    and yes, that's per gallon!

    See, those who produce oil, set their own prices for gas. It's not hard, it's called look out for yourself 1st! Something the US has lost it's ability to do.

    March 30, 2012 at 2:54 am |
    • jerome

      Why stop there? Let's federalize everything.

      March 30, 2012 at 12:54 pm |
      • 1FreeWorld

        If what you are saying when you say:

        Let' Federalize Everything, then you would be saying,,,,

        Let us PUT EVERYTHING that is not enummerated within the Constitution of the USA,,,
        that Gives LIMITED Power to the Federal Government,,,

        which ALSO,
        LIMITS the FEDERAL GOVERNMENT and gives the Power to the States and to the PEOPLE,,,
        to the States and to the People!

        If you meant Nationalized, then you may be leaning towards
        Communism, Fascism, etc.

        April 1, 2012 at 9:56 pm |
    • jean2009

      Those countries own the bulk of the world oil reserves...we own 2%...plus those countries are not dumb a percentage of them are already researching alternative fuels and going green.

      http://www.greenpurchasingasia.com/content/pathways-green-collaboration

      March 30, 2012 at 3:26 pm |
      • 1FreeWorld

        If what you are saying when you say:

        Let' Federalize Everything, then you would be saying,,,,

        Let us PUT EVERYTHING that is
        NOT WITHIN the power of the Federal Government (hence Federalize) ,,
        that is not allowed within the Constitution of the USA,,,
        into a Government, that CANNOT ACCEPT the RESPONSIBILITY
        WHERE
        the Constitution Gives LIMITED Powers to the Federal Government,,,

        which ALSO,
        LIMITS the FEDERAL GOVERNMENT
        and gives the Power to the States and to the PEOPLE,,,
        to the States and to the People!

        If you meant Nationalized, then you may be leaning towards
        Co mmu nism, Fa scism, etc

        April 1, 2012 at 10:12 pm |
  18. Lefty

    Obama has no idea how the economy works, he only knows the central planning theory that he sought out during his lifetime. In his own book he admits how he carefully selected the people he associated with, marxists and socialists. The guy has never believed in capitalism so why expect him to now? Oil companies pay a 41% tax rate and that's not enough? Google, Apple, and GE pay far less and no one bashes them.

    March 30, 2012 at 7:25 am |
    • FLIndependent

      Why are you people always sticking up for the oil companies who keep breaking their record profits every quarter. Don't you think they should be contributing to the government revenues and helping us in that respect? I just don't get the Repub mindset and guess I never will.

      March 30, 2012 at 3:25 pm |
  19. Church

    Howard's Daddy is right: "Why did the Republicans vote this down if they are so against government messing with free markets?"
    We also WASTE billions of dollars in many other areas.
    There are many "Bridges to nowhere" out there.
    Both parties are guilty of FRAUD.

    March 30, 2012 at 8:29 am |
    • John

      Church, if all the dems voted for yes it would have passed. Point fingers all you want, it is just more BS from the left.

      March 30, 2012 at 8:42 am |
      • jean2009

        Wrong again as usual. The vote was 51 to 47. Yes 4 Democrats voted against meaning it could have been a 55 to 43 vote but that is not the 60 needed to pass the legislation.

        March 30, 2012 at 3:44 pm |
  20. hvlock

    The government will not change the taxes on big oil, they have to vote on it and many are bribed (I use the word for what it really is bribed) to support what ever they want done. Think about it a Senator or Congressmen comes into office rich and goes out super rich. HOW. Investments? really. Try riches through backdoor means. and if investigated who investigates them their fellow representatives. who don't want things revealed. The rich get richer and the poor get poorer.

    March 30, 2012 at 8:39 am |
  21. Church

    Okay, John, so you want the stockholders to get richer off the American Taxes now?

    March 30, 2012 at 11:37 am |
    • John

      I don't care if people invest their money and make money. That is the root of our system. Using your example, if the oil companies get less money for their R+D (as BO proposed) do you think that loss will be covered by shareholders or do you think that loss will be passed on to the consumer at the pump (and everywhere else because of higher gas prices).

      March 30, 2012 at 1:22 pm |
    • C-Lo

      Yes I want stockholders to get richer...as a participant in the markets through my 401(k), IRA, and various individual mutual funds, that means me, my neighbors and probably you will get richer too.

      March 30, 2012 at 2:28 pm |
  22. Church

    John, I am neither a DEM or a Lefty. Do you also disagree with the rest of my statement?

    "We also WASTE billions of dollars in many other areas.
    There are many "Bridges to nowhere" out there.
    Both parties are guilty of FRAUD."

    And please take note of my last sentence: "Both parties are guilty of FRAUD."

    March 30, 2012 at 11:40 am |
    • John

      I agree. Both parties are screwing us all right now. But, right now BO and the dems are in charge and they are shoving their agenda down our throats.

      March 30, 2012 at 1:16 pm |
    • jean2009

      Take Farm Subsidies Welfare for Fortune 500 Companies and Members of Congress.
      http://mofyc.blogspot.com/2007/08/farm-subsidies-countrys-second-biggest.html

      March 30, 2012 at 3:31 pm |
  23. CM

    Stop sharing my wealth with the Oil Companies.

    March 30, 2012 at 12:01 pm |
  24. acdcguy

    Where's all the outcry on all the billions "the oh great one" wasted on failed green energy??? exactly..... Now all you whiney tree hugging hypocrites quit your complaining!!!

    March 30, 2012 at 12:46 pm |
    • Howard's Daddy

      What does that have anything to do with giving subsidies to oil companies? Are you getting any success/benefit out of this as a tax payer? Is the price of gas going down if we keep doing this? Do you enjoy giving billionaires 'chump change' for no reason?

      March 30, 2012 at 4:03 pm |
  25. jerome

    "Think about that. It’s like hitting the American people twice. "

    Kinda like how you get income taxes taken out of your paycheck, and then have to pay sales tax whenever you use the money they already taxed you on?

    March 30, 2012 at 12:52 pm |
    • jean2009

      Do you understand the difference between Federal, State, City, Property, and Sales Taxes?

      March 30, 2012 at 3:33 pm |
      • 1FreeWorld

        @Jean2009

        Do you understand the difference between,,,

        Strategic Oil Reserves and
        ALL THE OIL UNDERGROUND here in the USA???

        ALL OF OUR STRATIGIC OIL RESERVES,,,
        is 2%
        ALL OF OUR OIL UNDERGROUND is,,,,
        LIMITLESS!

        Liberals love to mis-GUIDE us to LOWER Standards,,,

        (BTW,,, Strategic Oil Reserves are for emergencies, not political stances)

        April 1, 2012 at 9:26 pm |
      • 1FreeWorld

        From the Benevolent Dictator:

        If you want to leave the USA,,, Please do!

        Ask your Local Cuban, Italian, North Korean, Venezuealen, Russian, etc.

        MY HAPPY HEART SINGS!

        [youtube=https://www.youtube.com/watch?v=30SK0zSaams&w=640&h=360]

        Maybe we can get all the Cubans, Iranians, Romans, Koreans, Germans, Asians, Pols, Greecians, and French to sing!

        April 1, 2012 at 10:33 pm |
  26. Church

    The worst of all is the required purchase of health care insurance.
    That is clearly unconstitutional and will not pass the Supreme Court; bless their black hearts.

    March 30, 2012 at 4:28 pm |
  27. Shannon

    I have read through the many comments made on the issue of oil and noticed the arguments. We may be more productive by researching more and educating ourselves more. In addition, the best way to change things is to personally get involved. If someone believes they have the answers then run for office and get put in position to make change. As citizens we get angry when our Government leaders talk but do not act or make decisions without first considering all the aspects of the decisions to make. We disrespect our leaders by doing the same. I am not saying respect the people in leadership if the respect is not due, but respect the positions. The world is watching and listening to Americans and the divisions. As a nation we need to stand together. Get involved and make change if you are specialized in the area discussing and bring more prosperity to the nation. Talking alone never changed anything.

    March 31, 2012 at 3:01 am |
  28. jean2009

    The current cost of gasoline is not hyperinflation, not when much of the world is paying more.

    The logical solution is to provide incentives to alternate fuel development which will bring down the cost permanently. Giving people a rebate didn't work when George W. Bush was president all it did was create a bigger problem ....like his massive depression.

    Truth is if the great G.W. Bush depression hadn't happened gasoline would already be over $5 per gallon as the national average. It was on its way to that point, in August 2008, when the economy collapsed and no one was buying. and no one was driving. Now that the economy is improving it is only natural that the price for gasoline will again rise toward the levels of the rest of the world; in countries which depend on foreign oil.
    The current problem may not be that gasoline prices are inflated but that the value of the dollar has declined against currency of other countries whose economies are growing. The way to counteract that is work to be competitive and spend on developing alternative fuels to make us self -sufficient.

    April 1, 2012 at 3:08 pm |
  29. Howard Flysher

    when is the moderate going to ask those complaining about the Preisident and gas prices if the American Oil companies are going to sell American oil for less per barrel to American Gasoline companies then international price from the Middle East sell their oil. They seem to think the oil companies will sell their oil for less to American Gas companies and make the price per gallon at the pump less. Come on now that is not Capitalism!

    April 1, 2012 at 3:47 pm |
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