cnn:
WASHINGTON (CNN) -- Calling the oil issue a matter of national security, President Bush outlined a plan Tuesday to cut gasoline costs and temporarily stopped deposits to the U.S. Strategic Petroleum Reserve.
Bush is delaying this summer's deposits to the reserve -- an emergency stockpile of government-owned crude oil -- as he faces political pressure from campaigning members of Congress and anger from consumers about high gas prices.
"So by deferring deposits until the fall, we'll leave a little more oil on the market," Bush said during a speech at the Renewable Fuels Association in Washington. "Every little bit helps." (Watch Bush tout his plan to cut gasoline prices -- 3:29)
"Our addiction to oil is a matter of national security concern," Bush said.
However, oil experts said the impact of withholding deposits, while positive, will have a negligible impact on gas prices.
"It's less than 30,000 barrels a day in a country that consumers 21 million. That's not even rearranging a single deck chair on the Titanic," Peter Beutel, president of Cameron Hanover, also told CNNMoney.com. "But psychologically, it has some effect." (CNNMoney: Bush seeks to curb oil tax breaks)
In outlining the other parts of his energy plan, Bush said the U.S. should "follow suit on what we have been emphasizing, particularly through the energy bill, and that is to encourage conservation, to expand domestic production, and to develop alternative sources of energy like ethanol," Bush said.
The plan calls for making sure consumers and taxpayers are treated fairly, promoting greater fuel efficiency, boosting the U.S. gasoline supply and investing aggressively in gasoline alternatives.
Bush also has ordered a federal investigation into possible cheating, price gouging or illegal manipulation in the gasoline markets.
Bush said consumers must first be treated fairly at the gas pump.
"Americans understand by and large that the price of crude oil is going up and that [gas] prices are going up, but what they don't want and will not accept is manipulation of the market," Bush said. "And neither will I."
Bush also called for a rollback in $2 billion in government assistance and tax breaks for oil companies over the next 10 years for items such as research and development for deep water drilling.
"Record oil prices and large cash flows also mean that Congress has got to understand that these energy companies don't need unnecessary tax breaks like the write-offs of certain geological and geophysical expenditures or the use of taxpayers' monies to subsidize energy companies' research into deepwater drilling," Bush said.
Additionally, Bush said he would ask the EPA to temporarily ease clean air regulations that have caused gas shortages in some portions of the Northeast. There have been media reports of shortages as producers switch over to cleaner-burning summer blends.
"I think it makes sense that they should be allowed to, so I'm directing EPA administrator [Steve] Johnson to use all of his available authority to grant waivers that would relief critical fuel supply shortages," Bush said. "And I do that for the sake of our consumers."
After the speech, Sen. Charles Schumer, D-New York, accused Bush of failing to get tough on powerful oil companies.
"The president today just spoke about high gas prices. And to listen to the president, you'd think that it's the local gas station that's the problem," Schumer said. "We all know it's the big oil companies who are causing these massive price increases that go way beyond what supply and demand would merit."
Oil companies reported record profits in 2005, led by Exxon Mobil, which said it made $36.1 billion -- the largest-ever annual profit for a U.S. firm.
"There were five words missing from the president's speech today: 'Get tough on big oil,' " Schumer said.
More gas pain ahead
As the nation's busiest driving season approaches, American consumers are paying a national average of $2.91 per gallon for regular self-serve, according to the Lundberg Survey of 7,000 gasoline stations this month. (Watch why some pumps shut down as prices go up -- 2:51)
The president has political concerns in addition to high oil prices. His presidential approval ratings have sunk to a personal low, with only 32 percent of respondents to a new CNN poll saying they approve of the way Bush is handling his job. (Full story)
In another CNN poll question, 23 percent of respondents said rising gasoline prices have caused "severe hardship" in their family and 46 percent said it was causing a "moderate hardship." (Poll results)
Bush has asked the departments of Energy and Justice to begin the inquiries into possible price gouging.
Members of the GOP-controlled Congress are concerned that rising gasoline prices could threaten their success in the November elections.
Hastert calls for investigation
In a letter released on Monday, House Speaker Dennis Hastert, R-Illinois, and Senate Majority Leader Bill Frist, R-Tennessee, urged Bush to order a federal probe into possible gasoline price gouging or market speculation.
"There is no silver bullet," Frist said Tuesday on ABC's "Good Morning America," according to The Associated Press. "We need to make sure that any efforts at price gouging be addressed and addressed aggressively."
House Minority Leader Nancy Pelosi, D-California, dismissed Hastert's and Frist's letter as "empty rhetoric." (Full story)
White House press secretary Scott McClellan said the Bush administration shares "a commitment with congressional leaders to make sure that we're acting to ensure that there is no price gouging."
U.S. Attorney General Alberto Gonzales and the Federal Trade Commission sent a letter Tuesday to all 50 state attorneys general, McClellan said, who have primary authority over price gouging issues. The letter will ask them to monitor the issue, he said, and to offer federal help.
The letter asks officials to vigorously enforce state law "against any anticompetitive, anticonsumer conduct in the petroleum industry," the AP reported.
"Consumers around the nation have expressed concerns about what they have perceived as anticompetitive or otherwise unfair conduct by the world's major oil companies," the letter said, according to AP.
WASHINGTON (CNN) -- Calling the oil issue a matter of national security, President Bush outlined a plan Tuesday to cut gasoline costs and temporarily stopped deposits to the U.S. Strategic Petroleum Reserve.
Bush is delaying this summer's deposits to the reserve -- an emergency stockpile of government-owned crude oil -- as he faces political pressure from campaigning members of Congress and anger from consumers about high gas prices.
"So by deferring deposits until the fall, we'll leave a little more oil on the market," Bush said during a speech at the Renewable Fuels Association in Washington. "Every little bit helps." (Watch Bush tout his plan to cut gasoline prices -- 3:29)
"Our addiction to oil is a matter of national security concern," Bush said.
However, oil experts said the impact of withholding deposits, while positive, will have a negligible impact on gas prices.
"It's less than 30,000 barrels a day in a country that consumers 21 million. That's not even rearranging a single deck chair on the Titanic," Peter Beutel, president of Cameron Hanover, also told CNNMoney.com. "But psychologically, it has some effect." (CNNMoney: Bush seeks to curb oil tax breaks)
In outlining the other parts of his energy plan, Bush said the U.S. should "follow suit on what we have been emphasizing, particularly through the energy bill, and that is to encourage conservation, to expand domestic production, and to develop alternative sources of energy like ethanol," Bush said.
The plan calls for making sure consumers and taxpayers are treated fairly, promoting greater fuel efficiency, boosting the U.S. gasoline supply and investing aggressively in gasoline alternatives.
Bush also has ordered a federal investigation into possible cheating, price gouging or illegal manipulation in the gasoline markets.
Bush said consumers must first be treated fairly at the gas pump.
"Americans understand by and large that the price of crude oil is going up and that [gas] prices are going up, but what they don't want and will not accept is manipulation of the market," Bush said. "And neither will I."
Bush also called for a rollback in $2 billion in government assistance and tax breaks for oil companies over the next 10 years for items such as research and development for deep water drilling.
"Record oil prices and large cash flows also mean that Congress has got to understand that these energy companies don't need unnecessary tax breaks like the write-offs of certain geological and geophysical expenditures or the use of taxpayers' monies to subsidize energy companies' research into deepwater drilling," Bush said.
Additionally, Bush said he would ask the EPA to temporarily ease clean air regulations that have caused gas shortages in some portions of the Northeast. There have been media reports of shortages as producers switch over to cleaner-burning summer blends.
"I think it makes sense that they should be allowed to, so I'm directing EPA administrator [Steve] Johnson to use all of his available authority to grant waivers that would relief critical fuel supply shortages," Bush said. "And I do that for the sake of our consumers."
After the speech, Sen. Charles Schumer, D-New York, accused Bush of failing to get tough on powerful oil companies.
"The president today just spoke about high gas prices. And to listen to the president, you'd think that it's the local gas station that's the problem," Schumer said. "We all know it's the big oil companies who are causing these massive price increases that go way beyond what supply and demand would merit."
Oil companies reported record profits in 2005, led by Exxon Mobil, which said it made $36.1 billion -- the largest-ever annual profit for a U.S. firm.
"There were five words missing from the president's speech today: 'Get tough on big oil,' " Schumer said.
More gas pain ahead
As the nation's busiest driving season approaches, American consumers are paying a national average of $2.91 per gallon for regular self-serve, according to the Lundberg Survey of 7,000 gasoline stations this month. (Watch why some pumps shut down as prices go up -- 2:51)
The president has political concerns in addition to high oil prices. His presidential approval ratings have sunk to a personal low, with only 32 percent of respondents to a new CNN poll saying they approve of the way Bush is handling his job. (Full story)
In another CNN poll question, 23 percent of respondents said rising gasoline prices have caused "severe hardship" in their family and 46 percent said it was causing a "moderate hardship." (Poll results)
Bush has asked the departments of Energy and Justice to begin the inquiries into possible price gouging.
Members of the GOP-controlled Congress are concerned that rising gasoline prices could threaten their success in the November elections.
Hastert calls for investigation
In a letter released on Monday, House Speaker Dennis Hastert, R-Illinois, and Senate Majority Leader Bill Frist, R-Tennessee, urged Bush to order a federal probe into possible gasoline price gouging or market speculation.
"There is no silver bullet," Frist said Tuesday on ABC's "Good Morning America," according to The Associated Press. "We need to make sure that any efforts at price gouging be addressed and addressed aggressively."
House Minority Leader Nancy Pelosi, D-California, dismissed Hastert's and Frist's letter as "empty rhetoric." (Full story)
White House press secretary Scott McClellan said the Bush administration shares "a commitment with congressional leaders to make sure that we're acting to ensure that there is no price gouging."
U.S. Attorney General Alberto Gonzales and the Federal Trade Commission sent a letter Tuesday to all 50 state attorneys general, McClellan said, who have primary authority over price gouging issues. The letter will ask them to monitor the issue, he said, and to offer federal help.
The letter asks officials to vigorously enforce state law "against any anticompetitive, anticonsumer conduct in the petroleum industry," the AP reported.
"Consumers around the nation have expressed concerns about what they have perceived as anticompetitive or otherwise unfair conduct by the world's major oil companies," the letter said, according to AP.
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