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Wednesday, April 27, 2011

what Obama might do to start bringing gas prices

what Obama might do to start bringing gas prices - us, recovery, fix the problem,impact gas prices, economy standards : President Obama is coming under increasing pressure to do something—anything—about gas prices, which this week have surged to an average of $3.86 per gallon, thanks to ongoing turmoil in the Middle East and rising demand around the world. In some states, they're more than $4 a gallon.

The president, who faces re-election next year, has gone out of his way to show that he feels Americans' pain at the pump. "This is obviously something that is affecting everybody," he said in a recent interview. "And we are looking at every option that is out there in terms of dealing with it." Economists fear that the high prices are putting a damper on the recovery, by making Americans reluctant to spend money.

ut what, if anything, can he actually do to fix the problem? Obama has acknowledged there's no "silver bullet" that can reduce the price of gas. But he has recently detailed several potential moves that could have an impact—even though none of them is likely to produce results as quickly as many Americans would like

Here's a rundown of what Obama might do to start bringing gas prices back to earth:

  • Invest more in renewable energy sources. In a radio address Saturday, Obama called this effort "the key to helping families at the pump and reducing our dependence on foreign oil."
  • End the $4 billion in subsidies for oil companies. "Instead of subsidizing yesterday's energy sources, we need to invest in tomorrow's,"Obama has said.
  • Root out fraud and manipulation in the oil markets. Obama has said he'll have a Justice Department task force probe whether oil market traders and speculators are "taking advantage of the American people for their own short-term gain."
  • Boost domestic oil production. "We don't want a repeat of the oil spill that we had in the Gulf last year," Obama said in an interview Tuesday. "But we've got to continue to make sure that U.S. production is strong." That might mean expanding drilling off the coast of Florida, or in Alaska.
  • Press oil-producing allies like Saudi Arabia to do their part. We need to "let them know," Obama said, "that it's not going to be good for the if our economy is hobbled because of high oil prices."
  • Work with automakers to increase fuel economy standards for cars and trucks.
    • Still, none of these approaches looks likely to have an immediate impact when Americans fill up their tanks. Ending oil subsidies and instead boosting investments in renewables may be good long-term policy, but it would take years for consumers to start feeling the benefits of such shifts at the pump. LIkewise, increasing domestic production wouldn't bring prices down any time soon, while raising fuel economy standards is a long-term project requiring a serious buy-in from Congress. And most experts think manipulation of the oil markets account for only a very small part of the recent price spikes, so it's unlikely that cracking down on such practices will have a major impact. As for leaning on Saudi Arabia, the Saudis profit from high prices, so it's far from clear what leverage the United States may have to counter the Saudis' push for market dominance. For the latest updates PRESS CTR + D or visit Stock Market news Today

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