Oil prices cause GOP to pressure Obama for a solution

Since Americans are upset over rising gas prices, Republicans in Congress aim to fix the blame on one person when they return next week from recess: President Barack Obama. On April 15, Congress wrapped up its last work session with Democrats and Republicans in a blistering debate about budget deficits and the size of the federal government.

So now the GOP in the House have come up with a new hot topic: high gasoline prices that are hitting consumers who are already struggling to recover from a prolonged economic downturn.

“Running on empty: Obama administration does nothing to address skyrocketing gas prices,” screamed a press release on Tuesday from House Speaker John Boehner’s office.

Reuters

Meanwhile Obama has urged oil-producing countries to increase output amid rising prices. He also asked Congress to end billions of dollars worth of oil industry tax breaks — money that could be used for deficit-reduction or investing in cleaner alternative energy.

Democrats have always argued that the oil companies reek in huge profits amid the high oil costs. They say the companies no longer need tax breaks. But we haven’t seen either party doing anything to correct the situation. And for example when BP had the oil spill last year in the gulf, they still reported profits of $5.5 billion in the first quarter.

The Republicans’ focus on energy comes as the national retail price for regular gasoline has hit $3.88 a gallon, an increase of more than $1 a gallon compared to a year ago. and it’s predicted that the gas pump prices will go even higher, come summer, because of the demand for gas increases, and the political unrest in the middle east.

And Boehner faces an even bigger fallout as public opinion polls show opposition to Republican initiatives that would further cut taxes for the rich while making senior citizens pay more for health insurance. About 61% of the American people think Medicare coverage for the elderly is worth the costs. Meanwhile, 45% said military spending should be cut while only 21% favored Medicare cuts.

“As gasoline prices close in on $4 a gallon, that is going to be part of the conversation,” said Spencer Pederson, a spokesman for the House Natural Resources Committee.

Reuters

The Republicans believe Obama wrongfully stood in the way of offshore oil drilling because of safety concerns following the Gulf of Mexico disaster last April. Gulf of Mexico oil output will decline by 190,000 barrels per day in 2011. On Monday, in an ABC interview, Boehner predicted Obama would not win a second term if gasoline prices were to rise to $5 or $6 a gallon.

Democrats dispute that statement.

Oil prices are now around $112 per barrel.