'Congress Needs to Do More' on Oil and Food Prices, Bush Says
Susan Jones
Senior Editor
(CNSNews.com) - President Bush, admitting that "these are tough times," laid some of the blame for higher gasoline and food prices right at the doorstep of Congress on Tuesday.
At a time when demand is rising faster than supply, members of Congress want foreign countries to boost their oil production, but they won't allow the U.S. to boost its own production, President Bush said at a White House news conference.
He said Congress should send the "right signal" by agreeing to explore for oil and gas in U.S. territories, including the Alaska National Wildlife Refuge.
Bush said efforts to explore ANWR in an environmentally safe way would send a signal to world markets that the U.S. is going to encourage oil exploration, not restrict it.
The Energy Department estimates that ANWR could produce about a million additional barrels of oil -- or about 27 million gallons of gasoline and diesel -- every day, about 20 percent over current oil production levels, Bush said.
Another reason for high gasoline prices is the lack of refining capacity. It's been more than 30 years since a new refinery was built in this country, Bush noted. But Congress is blocking efforts to expand capacity by building more refineries. He said Congress needs to agree on regulatory relief for oil refiners.
Bush rejected attempts to raise taxes on domestic energy production and impose "costly mandates" on producers. He said some in Congress are considering measures that would raise prices for consumers.
Bush said Congress is considering a "massive, bloated farm bill" that will continue subsidies for multi-millionaire farmers. "America's farm economy is thriving, the value of farmland is skyrocketing, and this is the right time to reform our nation's farm policies by reducing unnecessary subsidies," he said.
Bush said he's also concerned about people being able to stay in their homes and students being able to get loans.
Here again, he said, Congress could do more to help out. He mentioned White House proposals to address problems in the housing market, but Congress never acted on any of the proposed reforms.
Bush also pressed Congress to pass a bill that would temporarily give the federal government greater authority to buy federal student loans.
"On all these issues the American people are looking to their leaders to come together and act responsibly. I don't think this is too much to ask, even in an election year." He said his administration would "reach out to Congress" in seeking areas of agreement.
Senate Democrats reportedly are trying to write legislation to address the rising cost of gasoline, but they haven't gotten very far, press reports said on Tuesday.
Senate Majority Leader Harry Reid is said to be getting a number of proposals -- from halting additions to the underground Strategic Petroleum Reserve (SPR) to crackdowns on price-gouging and energy market manipulation.
On Tuesday, President Bush said he would not halt additions to the SPR because it wouldn't have any effect on prices. Moreover, he said it is in America's national interests to keep the SPR filled in case of a terror attack on domestic oil facilities.
Republicans reject higher taxes
On Tuesday, Senate Minority Leader Mitch McConnell (R-Ky.) said Americans' greatest concern these days is the price of gasoline.
"The price of gas has jumped by more than $1.25 a gallon since the beginning of the current Congress. The cost of oil nearly tripled in that time -- from about $45 a barrel last January to about $120 a barrel now," McConnell said.
The Republican leader said he's glad to hear that Sen. Reid has asked his fellow Democrats to come up with ideas to "work on this issue."
"But I fear that the answer that comes back will be the same two-word prescription that they've offered in the past: higher taxes." According to McConnell, "higher taxes will only raise the price at the pump, not lower it."
See Earlier Stories:
Congress Pushes 'Band-Aid Fix' to Gas Price Woes, Analyst Says (8 Nov. 2007)
ANWR Defeat Called 'Big Blow to Energy Independence' (22 Dec. 2005)
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