by Matthew Hay Brown

House Democrats expect bipartisan support today for a bill that would suspend new shipments to the Strategic Petroleum Reserve.

By reducing demand on the global market, Democrats say, the move could cut the cost of gasoline by as much as 24 cents per gallon.

Wishful thinking, says the White House.

"The SPR fill that we have now is one-tenth of one percent of daily supply," White House Press Secretary Dana Perino said Monday. "So it would have a negligible impact on gas prices. But we know that there's a lot of members of Congress who are interested in this idea."

Among the members interested are several prominent Republicans.

"I'd like to do is see us do something about ... the Strategic Petroleum Reserve," House Minority Whip Roy Blunt told CNN's Wolf Blitzer on Sunday. "I think we should stop filling it. The White House doesn't agree with that position. But that's one thing that would have impact at the pump."

In April, 16 Republican senators signed a letter asking President Bush to suspend the shipments. Not counting the Clinton-McCain embrace of a gas tax holiday, shutting off the flow to the reserve is one of the few attempts at reducing gas prices on which both parties have been able to find agreement.

by Frank James

If you want to show that you have a subtle understanding of the world economy, when asked why gas prices are high you might want to offer an answer that mentions world oil demand, the declining dollar etc.

But those weren't among the reasons Sen. John McCain, the all-but-official Republican presidential lnominee, offered during his interview with Bill O'Reilly on Fox News Channel last night. It's the fault of the oil "cartel," meaning the Organization of Petroleum Exporting Countries, or OPEC, he said.

"I think it's because of one fundamental problem. It's because you have a cartel that controls virtually all of the world's oil supply. And they, obviously, can set the price of oil to the highest level that can sustain it," McCain told O'Reilly.

Many problems with that answer. One, OPEC is responsible for about 40 percent of the world's oil exports, not "virtually all" the world's supply, as McCain said.

Also, as indicated earlier, economists place much of the blame for high oil prices on factors other than OPEC. There's demand in rapidly developing countries like China and India, for instance.

by Matthew Hay Brown

The gas tax holiday gained a powerful ally in the House today when Minority Leader John Boehner signed on to legislation that would tie a summerlong suspension to a freeze on earmarks.

"Since Democrats refuse to lead on gas prices and earmark reform - top priorities of the American people - Republicans will," the Ohio Republican said.

Economists and other critics say a gas tax holiday would do little or nothing to reduce prices at the pump, but would deprive the Highway Trust Fund of billions of dollars in revenue.

The legislation introduced today by Rep. Paul Ryan of Wisconsin, the senior Republican on the House Budget Committee, seeks to offset those loses by freezing spending on earmarks - an issue on which Republicans are attempting to regain the moral high ground.

"For far too long, taxpayers have been footing the bill for billions upon billions in wasteful Washington spending that our nation neither needs nor can afford," Boehner said. "An earmark ban will halt this pork-barrel spending until Congress comes up with a straightforward plan to reform the earmark process and restore some sanity to the federal budget."

by Matthew Hay Brown

The congressional stalemate over prices at the pump continues.

Senate Democrats unveiled new energy legislation this afternoon that they said would address the root causes of rising gasoline prices. But their Consumer-First Energy Act, with its proposals to raise taxes on oil companies, is likely to be blocked by Senate Republicans.

Meanwhile, the Republican proposal to drill in the Arctic National Wildlife Reserve and off the Atlantic and Pacific coasts, introduced this afternoon as the American Energy Production Act, is even less likely to go anywhere in the Democratic Senate.

"Even as it costs Americans more every day to fill up their gas tanks, Bush Republicans only offer more of the same failed energy policies that brought us to this point," Majority Leader Harry Reid said.

The Democratic legislation, by contrast, protects consumers, he said.

"Instead of helping big oil make more money at the expense of average Americans, we are forcing oil companies to change their ways," Reid said. "We will hold them accountable for unconscionable price-gouging and force them to invest in renewable energy or pay a price for refusing to do so."

by Matthew Hay Brown

Senate Majority Leader Harry Reid will give President Bush this much: He's one of a kind.

"Only President Bush could allow Big Oil to write our nation's energy policy, guarantee billions in oil tax breaks and refuse to stand up to OPEC or crack down on price gouging, and then shirk responsibility for gas prices that have more than doubled and oil prices that have quadrupled since he took office," the Nevada Democrat said today. "Only President Bush could be surprised to learn that gas was approaching $4 a gallon and then claim the White House is concerned about high gas prices."

Reid was responding to Bush's press conference this morning, during which the president said it was the Democratic Congress that was standing in the way of his efforts to restrain rising prices at the pump.

"One of the main reasons for high gas prices is that global oil production is not keeping up with growing demand," Bush said. "Members of Congress have been vocal about foreign governments increasing their oil production; yet Congress has been just as vocal in opposition to efforts to expand our production here at home.

"They repeatedly blocked environmentally safe exploration in ANWR," Bush said. "Congress has repeatedly blocked efforts to expand capacity and build more refineries. ... Congress continues to block provisions needed to increase domestic electricity production by expanding the use of clean, safe nuclear power."

(Photo by Tim Sloan/AFP/Getty Images)

by Frank James

Sen. Richard Durbin knew he potentially could be stepping on a cow pie yesterday if he didn't carefully answer a reporter's question yesterday about the inflationary effect U.S. ethanol mandates might be having on food prices around the world.

The Senate's second-in-commade represents Illinois, after all, a state with large farm interests. And his party's presidential and congressional fortunes also depend on voters in states significant agricultural interests.

So Durbin was not only careful in what he said, but he was clear in asking reporters to report his answer accurately. He basically acknowledged that ethanol is part of the problem without saying much that would offend farmers. Budding politicians should study it as a great example of how to straddle an issue.

REPORTER: Senator Durbin, a lot of people, hunger experts, say that the demand for biofuels, ethanol and other biofuels, is contributing a lot to the increase in prices.

But we have to understand that it's had an impact on food prices, and let's be honest about it. Even in the corn belt, we'd better be honest about it.

By David Nitkin

The White House has abruptly announced a news conference in the Rose Garden at 10:31 a.m. today -- giving reporters less than two hours to prepare their questions for President Bush.

Bush will launch the news conference with an 8 minute statement, the White House says, "regarding Americans' understandable anxiety about issues affecting their pocketbooks."

According to the press office, "He will also call upon Congress to send him sensible and effective bills that will help Americans weather this difficult period and keep our country moving forward.

He will specifically reference:

1. Energy prices - Congress should pass legislation which would clear away obstacles to more affordable, more reliable energy here at home.

2. Rising food prices - Congress should reform our farm programs by passing a fiscally-responsible bill that does not impose new burdens on American consumers.

3. Mortgage payments - Congress should pass specific legislation that will help more families stay in their homes.

4. Student loans - Congress should give the federal government greater authority to buy federal student loans."

by Matthew Hay Brown

Republicans have taken to calling the 50 percent increase in gasoline prices since Democrats took over last year the "Pelosi Premium." Democrats say Republicans are looking at the wrong time frame.

"When President Bush took office, gas prices were less than half of what they are today - and oil was less than one-third," Sen. Frank Lautenberg of New Jersey says in today's Democratic radio address. "Then, seven years ago, President Bush and Vice President Cheney secretly invited executives from the big oil and big energy companies to the White House to write our national energy policy. ...

"Now, they are hauling in record profits," Lautenberg says. "We are paying record prices. And their profits are coming out of our pockets."

Republicans have been hounding Pelosi to explain the "commonsense plan" to hold down gas prices that Democrats promised two years ago.

"Two years later, they appear to have no plan other than to increase taxes on energy companies and stand in the way of increased domestic production," Senate Republican Leader Mitch McConnell said. "So what we want to know is, where is the 'commonsense plan' to lower gas prices? And what is taking them so long to unveil it? The American people are waiting--and paying more at the pump each day they wait."

In fact, Pelosi has spent a good part of the last week calling on Republicans to help pass legislation to crack down on price gouging, hold OPEC accountable for price fixing and end tax breaks for oil companies and invest the savings in renewable energy.

On Thursday, Pelosi urged Bush to halt deliveries to the Strategic Petroleum Reserve. On Friday, Democrats called on the Federal Trade Commission to use the authority recently granted by Congress to investigate prices for possible market manipulation.

The larger problem is that for a price surge linked to market speculation, unrest in the Middle East, the week U.S. dollar and growing demand from China and India, there are no easy solutions. Lautenberg's address follows.

On April 23, 2008, a motorist fuels up at a San Mateo, Calif. gas station. (AP Photo/Marcio Jose Sanchez, file)

by Matthew Hay Brown

House Democrats are concluding their gas price-themed by calling on the Federal Trade Commission to investigate gasoline prices for possible market manipulation.

In a letter today, Speaker Nancy Pelosi, Majority Leader Steny Hoyer and other senior Democrats called on Commission William E. Kovacic to exercise new investigative authority granted by Congress in the Energy Independence and Security Act of 2007.

"Congress provided this authority to the FTC four months ago - but to date, the FTC has failed to exercise its power to protect consumers from skyrocketing energy costs," they wrote. "Recent price volatility and investor speculation in the oil market require the diligent oversight Congress called for, especially when oil prices break records daily."

On Thursday, Pelosi urged President Bush to stop suspend deliveries to the Strategic Petroleum Reserve. She also has called on Bush and congressional Republicans to work with Democrats to pass legislation to crack down on gasoline price gouging, hold OPEC accountable for price fixing and end tax breaks for oil companies and invest the savings in renewable energy.

The letter follows.

by Matthew Hay Brown and David Nitkin

The White House is resisting bipartisan calls to halt new shipments to the Strategic Petroleum Reserve while gasoline prices at the pump continue to rise.

Democratic House Speaker Nancy Pelosi joined presumptive Republican presidential nominee John McCain today in asking President Bush to stop adding 60,000 barrels of oil each day the giant undergound caverns in Texas and Louisiana where the government keeps the reserve - a move they say would help reduce demand.

"Today the SPR is nearly 97 percent full," Pelosi told reporters today. "Independent experts report that suspending deliveries to SPR could cut as much as five cents on the low-end to 24 cents off a gallon of gas and provide real savings for families. ...

"Suspending delivery to SPR will not only increase supply, but impact energy prices by sending a signal to the market to stop runaway speculation."

The White House disagrees.

"The Administration continues to fill the reserve at a modest rate," spokesman Scott Stanzel said. "We don't believe the fill rates have a meaningful impact on oil supplies, as this oil equates to less than one tenth of one percent of daily world consumption. We continue to fill the reserve to provide an added layer of protection to the American people in cases of severe supply disruption."

Pelosi cited precedent for the move.

"Ahead of the first Gulf War, the first President Bush withdrew oil from the SPR. Withdrew oil from the SPR," she said. "We're not asking for that. President Clinton suspended SPR deliveries in 1995 and even the current President Bush withdrew oil from SPR and sold it on the market following Hurricane Katrina."

by Matthew Hay Brown

House Speaker Nancy Pelosi, under fire from House Republicans for failing to contain rising gas prices, is appealing to President Bush for help.

In a letter today, the California Democrat asks Bush to direct the Justice Department to investigate oil cartel price-fixing, authorize the Federal Trade Commission to pursue and punish "price gougers," end tax breaks for oil companies and invest the savings in renewable energy.

"Lastly, your administration must use the authority given to it by the Congress to end market manipulation," Pelosi writes. "We cannot wait to act in the face of these price increases."

The letters appears to be a response, of sorts, to a campaign by the House Republican Conference accusing Democrats of breaking a promise to contain gas prices. Yesterday, they were calling the increase at the pump since Democrats took control of Congress last year the "Pelosi Premium."

Democrats say Republicans are blocking their efforts to wean America of foreign oil. Pelosi's letter follows.

by Matthew Hay Brown

Executives from Exxon Mobil, Shell and BP America all have been called to account before Congress today on oil company profits and rising prices at the pump. One oil baron who wishes he had been invited, according to House Republican Leader John A. Boehner, is Hugo Chávez.

With the hearing of the House Select Committee on Energy Independence and Global Warming now underway, Boehner has released the “testimony” of the Venezuelan strongman. As the Ohio Republican has it, Chávez is particularly interested in expressing grattitude to House Democrats for tax breaks that he says would benefit CITGO, the state-owned oil giant.

“It is especially relieving to know that while CITGO receives these tax breaks, five other major oil companies – including American-owned companies employing thousands of working Americans – will be forced to pay higher taxes, raising energy costs on consumers in your country and endangering scores of jobs as well,” Chávez says. “Please extend my gratitude to Speaker Pelosi, Majority Leader Hoyer, Whip Clyburn, Chairman Emanuel, and everyone who played a role in scheduling this legislation for a vote in the House of Representatives.

“Being a socialist dictator is a difficult – and often lonely – burden these days,” he continues. “As more nations move toward democracy, the number of socialist dictators in our world is declining, and we can use all the help we can get.”

It is, of course, an April Fool’s Day joke. The complete “testimony” follows.

by Frank James

Former Democratic U.S. Congressman Joseph Kennedy III has gotten a lot of attention, much of it negative, for his ads praising Venezuela for providing low-priced heating oil to Kennedy's company, Citizens Energy, which provides low-cost fuel to hard-hit low income Americans.

Last year, when he ran the first ads lauding Venezuela and Citgo, the nationally owned oil company, Kennedy ran into a conservative buzzsaw and he was criticized for acts tantamount to treason for aiding and abetting an enemy of the Bush Administration, Venezuelan president Hugo Chavez, a big fan of Cuba's maximum leader Fidel Castro and a man of whom it can be fairly said doesn't embody the best notions of democratic leadership.

Such hardline conservative feelings may be impossible to change. But ads running now that are similar to those that ran last year can evidently have an effect on the persuadable, which appears to be what is shown by a new study of 404 people, including self-described Democrats, Republicans and Independents, who were surveyed over the Internet by HCD Research Inc, using its MediaCurves.com technology.

What HCD found was that the ads with Kennedy do appear to win over some viewers who see Venezuela in a more positive light after viewing the ad than they did before. Of course, that is exactly the impact Venezuela means for the ads to have.

By Matthew Hay Brown

As oil futures topped $100 a barrel today, House Speaker Nancy Pelosi said congressional Democrats would try again to end government breaks for the industry – an approach that has been rejected by President Bush.

“It is unfortunate that President Bush opposed our legislation to repeal multi-billion dollar subsidies given to Big Oil companies,” Pelosi said in a statement. “We will again seek to repeal these subsidies and to enact strong legislation to stop price gouging at the pump and pursue anti-trust actions against OPEC entities that fix the price of oil.”

The White House, meanwhile, spoke of expanding domestic production, including drilling offshore and in the Arctic National Wildlife Refuge.

“We have to figure out a way to increase supply here in the United States, done in environmentally sensitive ways, which we know how to do, so that we can have an increase supply of oil here while world demand continues to increase at a really astronomical pace for demand for oil,” White House Press Secretary Dana Perino told reporters.

Violence in the Nigerian oil center of Port Harcourt and rough weather that threatened oil-exporting ports in Mexico helped push the price of light, sweet crude for February delivery over the century mark, the Associated Press reports. Adjusted for inflation, the cost remains within range of highs set in 1980.

Prices at the pump, which tend to lag behind futures, rose slightly today, according to the Oil Price Information Service. The national average cost of a gallon of regular unleaded gasoline climbed 0.6 cents today to $3.049. That was down from $3.061 a month ago, but up from $2.322 a year ago.

by William Neikirk

President Bush signed an energy bill into law today that would not have been his ideal of a good bill when he took office in 2001.

But times and politics change and so do presidents. He's still a driller but now he's become more of a conserver--greener than he was six years ago (in an environmental sense, I mean).

So it is now the law of the land that the nation's automakers must produce vehicles that get an average 35 miles per gallon by 2020. Also, it is also the law that appliances must be more efficient and that new incentives are in place to produce more renewable fuels.

The tenor of much of the commentary has been to praise Congress and the White House for their action--and then to ask: What took so long? To some, it seems like seven years of wasted argument over better mileage standards--otherwise known as CAFÉ standards.