Obama: Rising gas prices mean oil company profits
Photo
In this April 20, 2011 file photo, gas prices above five dollars a gallon for Plus and Supreme octanes, are seen on a sign at a gas station in Washington. Americans saw their incomes rise in March and this spurred higher spending. But much of the extra money went to pay for more costly gasoline.
WASHINGTON — President Barack Obama declared Saturday that oil companies are profiting from rising gasoline prices and urged Congress once again to end $4 billion a year in oil and gas company tax breaks.
"These tax giveaways aren't right," Obama said in his weekly radio and Internet address. "They aren't smart. And we need to end them."
Obama has been sparring with congressional Republicans over the skyrocketing cost of gasoline, which has topped $4 a gallon in some regions of the country, more than $1 dollar higher than a year ago. The rising prices have contributed to a slowdown in economic growth and have hurt Obama's public approval ratings.
The Exxon Mobile Corp. this week reported nearly $11 billion in profits for the first quarter of this year but said it had no control over oil prices. Other oil companies also reported huge gains.
Senate Majority Leader Harry Reid, D-Nev., says he plans to consider Obama's proposal as early as next week.
The president said money recouped from ending the oil and gas tax subsidies should be used on new energy resources and research. He said he refuses to cut spending on clean energy initiatives.
"An investment in clean energy today is an investment in a better tomorrow," he said. "And I think that's an investment worth making."
Obama's critics say his call to end such subsidies is merely support for new tax increases that would end up costing jobs.
"The president may think he's punishing CEOs of big companies, but his plan will hurt the everyday consumer of energy and imperil the jobs of millions of hardworking people in American-based companies," Rep. James Lankford, a first-term congressman from Oklahoma, said in the Republicans' weekly address.
In his address, Obama said the economy was growing again and took note of nearly 2 million new private sector jobs in the last 13 months. But the president did not mention that the pace of the recovery slowed significantly in the first three months of this year. The nation's economy grew at a 1.8 percent annual rate during that quarter, a much slower pace than the 3.1 percent rate reported in the previous three months.
High gasoline prices, bad winter weather and steep government spending cuts were responsible for the slowdown.
Eager to show action on gas costs, Obama has repeatedly called for ending the tax subsidies to oil and gas companies, even while conceding that they would not have an immediate effect on prices. He has also called for the Justice Department to investigate possible price fixing and said this week that he was also prodding OPEC nations such as Saudi Arabia to increase production.
"I also believe that instead of subsidizing yesterday's energy, we should invest in tomorrow's," he said.
Lankford also warned that Republicans would not vote to raise the nation's debt ceiling — now at $14.3 trillion — in the coming weeks unless the measure also includes steps to cut government spending. Presidents have agreed to such deals in the past, and Obama this month, in an interview with The Associated Press, conceded that some spending restrictions might be necessary to win an increase in the debt ceiling. Without raising that limit, the government would default on its debts.
May 6, 2011 at 10:13 a.m.
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west,It is Obama's fault as much as the left claimed it was Bush's fault.
May 5, 2011 at 3:13 p.m.
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Why do they keep using Profit and not NET INCOME when they talk about these things. How quick is everyone to forget that these businesses do not operate on hope and rainbows. If you want to really see whats going on, why not look at THEIR costs. Perhaps in particular their largest single cost being THE GOVERNMENT...
May 5, 2011 at 2:49 p.m.
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The president does not set the price of gasoline. Get that through your skulls. Geez, I think if the Prez said the sky was blue, half of you would claim it was red and the other half would believe in some conspiracy that had Obama artificially coloring the sky from planes spraying food coloring in their "chemtrails".
May 5, 2011 at 2:47 p.m.
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Obama and the far left are fooling all of you......
If we end subsidies, we should also end Obamacare, welfare, foodstamps, farm subsidies .... all cash payouts that lead to government subsidy. Then and only then would I agree. You cannot end one without ending them all, and I agree, all of them should end.
The reality is -- Obamites, and the left throw big numbers at you. Its a smoke screen, to misdirect you away from the real issues caused by big government and government manipulation of the free market.
May 5, 2011 at 2:12 p.m.
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Gas was $1.87 a gallon when Obama took office. Look at the price today. When he campaigned in 2008 he said he wanted prices to go up to make green energy more price competitive. Last week at a campaign stop he was making fun of people who drive gas guzzeling SUV's. But a Preius (sp) was his answer. Man I love my Escalade.
May 5, 2011 at 6:07 a.m.
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Mouse: that website is down for whatever reason but looking at the titles of their articles---wow! What a radical left wing website! "the Jesus myth", "Bush lies", "How Reagan Sowed the Seeds of America's Demise" etc.
May 4, 2011 at 11:16 p.m.
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But... the petroleum companies need more subsidies...
http://www.roilwedding.com/
May 4, 2011 at 12:53 p.m.
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TCB, you got it right. If drilling was given the go ahead anywhere and everywhere right now, speculators would cause the oil prices to drop like mad.
youkillme, better yet, what statement of N.P.'s do you agree with?
May 4, 2011 at 12:35 p.m.
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Kiesha, which statement from Pelosi do you disagree with?
May 4, 2011 at 12:31 p.m.
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End the subsidy today and open ANWR for drilling immediately-in addition to providing leases to companies who wish to risk their capital in the gulf. Also end the corn ethanol subsidy. This equates to 10 Billion less confiscated from American Tax payers. Ending the subsidies will also eliminate jobs-but there always is a give and take with these things.
But ending subsidies is different than changing the tax code as the article infers.
May 4, 2011 at 12:22 p.m.
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I believe a maroon is a Bugs Bunny reference.
May 4, 2011 at 11:10 a.m.
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Mouse..Here's an example of how hypocritical you lefties are:
Nancy Pelosi, press conference, September 7, 2006:
“Even if [Osama bin Laden] is caught tomorrow, it is five years too late. He has done more damage the longer he has been out there. But, in fact, the damage that he has done ... is done. And even to capture him now I don't think makes us any safer.”
Nancy Pelosi yesterday:
“The death of Osama bin Laden marks the most significant development in our fight against al-Qaida. ... I salute President Obama, his national security team, Director Panetta, our men and women in the intelligence community and military, and other nations who supported this effort for their leadership in achieving this major accomplishment. ... The death of Osama bin Laden is historic
May 4, 2011 at 10:55 a.m.
May 4, 2011 at 9:22 a.m.
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NoLeftist: Another Rethuglican brain trust. Your intellect is showing. Maroon means to ABANDON. You might want to learn to use the DICTIONARY.
May 4, 2011 at 8:38 a.m.
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What we need to do is nationalize our oil production, just like Mexico and Venezuela have. Of course, their output is much lower than it could be (I believe Mexico's is falling like 7% per year) because the companies have no profit motive, but hey, the lefties get to feel good that their oil companies make no profits!
What a bunch of maroons.
May 3, 2011 at 4:28 p.m.
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idiots, really...
May 3, 2011 at 12:49 p.m.
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Osama was killed by SEIU goons who were trying to unionize Al Quaida. (wonder how far I can get that rumor to spread) Or should I go with: He was offed by Al Gore for trying to horn in on Al's global warming scam.
May 3, 2011 at 10:11 a.m.
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The speculators on Wall Street need to be shut down.
May 3, 2011 at 8:46 a.m.
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I find it interesting to see that the Rethuglicans are trying to take credit for the killing of bin Laden. Remember bloggers, when things are going good, thank the Rethuglicans. When things are going back, deflect to the Left.
wislady: Adding you was a terrible mistake. I meant to add Kiesha. You're not worthy!
May 2, 2011 at 8:02 p.m.
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The devaluation of the dollar is not from "funding" anything. Its mostly been through quantitative easing, buying our own debt with nothing; essentially the same as printing money.
May 2, 2011 at 1:54 p.m.
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badgerlvr, have you never seen "The X Files"? Everyone knows it was the smoking man who killed JFK.
May 2, 2011 at 1:51 p.m.
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" This devaluation of the dollar has been caused by economic policies of President Obama"
No. The devaluation of the dollar is caused by economic policies of both Repubs and Dems, for the most part acting in bipartisan votes to fund banks and automotive companies in the absurd belief that it was going to help the economy, create jobs and get us back to normal. Both are equally to blame.
May 2, 2011 at 12:46 p.m.
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mouse: I rarely agree with you but I do enjoy your sense of humor--keep it up, seriously.
May 2, 2011 at 11:58 a.m.
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Obama purposely restricts the supply of a commodity, under an energy plan whose express purpose, according to Obama, was to make energy prices "necessarily skyrocket."
When the price does "skyrocket," he derides the owners of the commodity for owning a commodity that he made more expensive.
Luckily, there are profits in drilling oil efficiently. Otherwise, making sure you got the cheapest oil would be like getting good customer service at the post office or being confident the Obama administration wouldn't be mortgaging our children to the Chinese!
May 2, 2011 at 11:46 a.m.
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Once again, it's simple math. Everyone says "Company A" made X in proift last year but paid no (or little) money in taxes. But nobody ever thinks about the fact that the largest part of their profit did not come from sales in the U.S. Gasoline is roughly 2-1/2 times the price we pay all over Europe and in much of Asia. A LITRE of oil is jacked up even more. The biggest profiteer (by far) off oil in the US is not big oil, but big bro.
May 2, 2011 at 11:33 a.m.
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Whats the problem here? Oil set a record high under Bush at $147 a barrel and we paid $4 a gallon and up. Under Obama oil is around $115 dollars a barrel and we are all ready around $4 a gallon and up. Why? Also Obama denies the drilling of oil here in the U.S. but he just gave $2 Billion to Brazil to help them develope their oil fields, so we have to continue to import higher oil! does this make any scense to you lefties? If the oil companys really want to make more profits, they should be bought by GE then they would not have to pay any taxes.........
May 2, 2011 at 11:10 a.m.
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Mouse - You're too busy blaming Thompson for Doyles mistakes too.
May 2, 2011 at 11:07 a.m.
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mouse I don't want "ypu president to clan up" anything, but thanks for asking.
May 2, 2011 at 9:38 a.m.
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concernedperson - The difference is, when gas prices were high under Bush, he was blamed for it. Now they are higher than ever under Obama, and the left won't blame him, they will continue to blame Bush. Time to man up. The problem exists in the Government as a whole, not just who is in charge.
May 2, 2011 at 9:10 a.m.
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mouse: I would be real concerned if concernedperson was taking my side.
May 2, 2011 at 9:06 a.m.
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http://www.youtube.com/watch?v=NzlG28B-R...
May 2, 2011 at 9:01 a.m.
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Get off mouse's case. Sometimes some of the things you cons. are putting out there are like half-baked cookies. Or I begin to wonder what is in YOUR cookies?
May 2, 2011 at 7:57 a.m.
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Grandys618: Then the high gas prices under GW Bush were also his fault. They hit over $4.00 per gallon under his presidency as well.
May 2, 2011 at 6:53 a.m.
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mouse: you hitting the sauce? Did you lose it? We're talking about gas prices and you bring up the S&L crisis of the early 80's? Over 30 years ago, man. Get some rest.
May 2, 2011 at 5:53 a.m.
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Based on your posts you don't, they are not connected. I suggest you stay off the left wing blogs and actually do some reading.
May 1, 2011 at 8:09 p.m.
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mouse do you know the difference between the S&L crisis and what happened to the economy in 2008?
May 1, 2011 at 11:35 a.m.
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Badgerlvr
Wow, I am honored to have made the list!
May 1, 2011 at 11:08 a.m.
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Obama was president during the tragedy in japan, that doesn't mean he had anything to do with it. If you are saying he is directly responsible provide the policy he enacted which caused it.
May 1, 2011 at 10:56 a.m.
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Yes, Kiesha, we are going to blame Bush again.
May 1, 2011 at 10:54 a.m.
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RAF: Was he or was he not the president at that time?
May 1, 2011 at 10:44 a.m.
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"directly attributable to him"
-
Provide the policy that was enacted by him to do this.
May 1, 2011 at 10:20 a.m.
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Kiesha: History has already shown GWB was a big mistake. The Wall Street crash, Sept. 2008, occurred during his admin., directly attributable to him.
Apr 30, 2011 at 9:17 p.m.
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Oh gosh, come on people, you know POTUS wants to please all of the greenies. Just buy a hybrid, inflate you tires properly, or ride a bike. HINT: If you're thinking about the new Volt, take heart, only a few hundred have been selling per month this year. Another pathetic obummer fix...sad, but oh so true.
Apr 30, 2011 at 5:58 p.m.
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Here are liberals telling me to "wake up" and Obama is asleep on the 8th hole. I didn't set up subsidies. Ask your liberal friends who set up the thing. Look at the history Sarah. You going to blame Bush again?
Can we export liberals for profit?
Apr 30, 2011 at 5:54 p.m.
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Maybe the greedy oil companies could change their pricing structure as follows-If you're a high wage earner you pay full pump price plus a 50% surcharge. Now 20% of that surcharge would help offset the cost to the middle class and the other 30% would go for the poor folks.
In fact we could do that with everything we buy. (Of course not the stuff being boycotted or stickered just everything else)
Apr 30, 2011 at 5:42 p.m.
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subsidies for fossil fuels should have went out the window a long time ago...maybe they should better subsidize newer, more efficient fuels to level the playing field...cnw-your shoes must be HUGE! ;)
Apr 30, 2011 at 5:41 p.m.
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Let me see if I got this "change" thing right. Both "W" and "O" are starting wars in the middle east and getting their oil buddies rich. Looks like the American people have put two incompetent fools in the white house. Time to pull out the "Trump" card.
Apr 30, 2011 at 1:42 p.m.
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Minan: you might want to read the response to the article you quoted from that EXXON paid no federal taxes in 2010. According to the response to the article EXXON stated that they applied an OVERPAYMENT for 2009 to what they owed in 2010 and the reporter declined to add that info. Biased maybe?
Apr 30, 2011 at 1:07 p.m.
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The I.Q. of the left on here wouldn't add up to my shoe size.
Apr 30, 2011 at 12:36 p.m.
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Paul Ryan will fight for Big Oil. He voted to protect their subsidies a month ago. The price at the pump isn't high enough to satisfy their thirst.
Apr 30, 2011 at 12:08 p.m.
Apr 30, 2011 at 11:42 a.m.
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Yup! Obama is responsible for high gas prices. He's also responsible for the killing of innocent children in Libya. Don't forget the tornadoes in Alabama. He's certainly got a hand in that. More than likely he was a conspirator in the Kennedy assassination. Hmmm, I wonder where he was when Lincoln was shot?
The DONALD/SARAH/GLENN/RUSH/SEAN/BILL/MICHELLE/LAURA/NORTHMAN/RAF/wislady, et. al. are all correct. He's obviously Un-American.
Apr 30, 2011 at 10:09 a.m.
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I just cannot believe how some people on this blog are in such denial.
President Obama is not against anyone making a profit. But he is against the oil companies getting rich off the backs of the poor and middle class in this nation.
If you think Exxon is not making an astronomical profit, YOU ARE IN COMPLETE DENIAL.
Apr 30, 2011 at 9:29 a.m.
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That's yet another reason why I support the FairTax.
Apr 30, 2011 at 7:32 a.m.
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"The president said money recouped from ending the oil and gas tax subsidies should be used on new energy resources and research. He said he refuses to cut spending on clean energy initiatives".
Why is it that the national gubmint can never just CUT spending, they always want to move it around? Just more of the same, a complete lack of leadership from the White House.
While I do not favor subsidies for private companies (ever!), I am glad that our oil companies are making money so that they can continue providing us with the energy we need.
Apr 30, 2011 at 7:32 a.m.
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And you know how Obama feels about ANYONE profiting from ANYTHING...
He equates profit to evil. This is America? Exxon is making two cents a gallon profit right now. The government, over 50 cents. So who is the profiteer here???
Apr 30, 2011 at 6:56 a.m.
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Exxon is paying a lot of taxes, what about GE.
Apr 30, 2011 at 5:15 a.m.
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Wow, for all the hope and change not much difference between today and 2008 when he gave this speech.
http://www.youtube.com/watch?v=dnLP12X3E...
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