(CNSNews.com) - Two years ago, President Bush refused to "play politics" with the Strategic Petroleum Reserve, but he's apparently changed his mind.

In response to a public outcry over rising gasoline prices, President Bush on Tuesday said he has directed the Energy Department to suspend deposits to the Strategic Petroleum Reserve through the summer -- to boost oil supply over the short term.

Bush said the Strategic Petroleum Reserve is "sufficiently large enough to guard against any major supply disruption over the next few months."

By deferring deposits until the fall, he said, "we'll leave a little more oil on the market. Every little bit helps."

Democrats, including Sen. John F. Kerry, wanted Bush to suspend SPR deposits when gasoline prices spiked in 2004. (See earlier story)

But President Bush refused at the time, saying it "would put America in a dangerous position in the war on terror."

In May 2004, President Bush told reporters at the White House, "We will not play politics with the Strategic Petroleum Reserve. He added that the SPR exists "in case of major disruptions of energy supply," and stopping deposits or dipping into the reserve would put the U.S. "in a worse position" in the war on terror.

Energy experts then and now said deferring deposits to the SPR is unlikely to have much impact on gasoline prices, which are rising because of strong demand.

In his speech on Tuesday, President Bush described higher gasoline prices as a "hidden tax" on working people, farmers and small businesses.

"So the fundamental question is, what are we going to do? What can the government do?" Bush asked, noting in the next breath that price fixing has never worked.

Instead, President Bush called for conservation, expanded domestic production, and developing alternative sources of energy, such as ethanol and hydrogen technology.

Mindful of current market conditions and public perceptions, President Bush said the first thing is make sure that American consumers are treated fairly at the gas pump.

"The Federal Trade Commission is investigating whether the price of gasoline has been unfairly manipulated in any way. I'm also directing the Department of Justice to work with the FTC and Energy Department to conduct inquiries into illegal manipulation or cheating related to current gasoline prices."

The president said the large cash flows generated by oil companies -- those "windfall profits" -- must be reinvested, to expand refining capacity, production, or develop alternative fuels.

"We expect there to be strong reinvestment to help us with our economic security needs and our national security needs," Bush said in a message to the oil companies.

He also urged Congress to remove "unnecessary" tax breaks for oil companies; and he called for greater (voluntary) fuel efficiency and a reduction in the number of special-blend "boutique fuels." But those are short-term solutions, he admitted.

"The truth of the matter is, the long-term strategy is to power our automobiles with something other than oil," Bush said.

With that goal in mind, the president said the nation is "on the threshold of major technological breakthroughs" to reduce dependence on foreign oil.

Those breakthroughs include expanded use of ethanol; improving hybrid vehicles, and developing hydrogen technology, he said.

See Earlier Stories:
Bush Blamed for High Gas Prices, Just As Clinton Was (Mar. 30, 2004)
Bush Won't 'Play Politics' With Emergency Oil Stockpile (May 19, 2004)
Clinton's Release of Strategic Oil Due for Senate Grilling (18 Oct. 2000)
Critics Accuse Clinton of Playing Politics with Oil Reserve (22 Sept. 2000)

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