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Subscribe to RSSU.S. Energy Secretary Steven Chu yesterday said he no longer believes in increasing gas prices to help spur research in alternatives to fossil fuels.
When questioned by Sen. Mike Lee (R-Utah) at a Senate Energy and Natural Resources Committee hearing about his past statement, which he gave four years ago, Chu said: "Since I walked in the door as secretary of Energy, I’ve been doing everything in my powers to do what we can ... as we see these gas prices spike, to reduce those prices."
He continued, "But in the Department of Energy's tool chest, the most important thing we are doing is to offload the dependency on oil, using natural gas for transportation, bio fuels and all of those things."
In an interview with the Wall Street Journal in 2008, before becoming Energy secretary, Chu had said: "Somehow, we have to figure out how to boost the price of gasoline to the levels in Europe."
Yet yesterday, Chu stated: "The president and I, yes we do acknowledge and feel the pain of not only American consumers but American businesses when these prices increase."
And when asked by Lee if he no longer believes that "we have to figure out how to boost the price of gasoline," Chu responded, "I no longer share that view."
In yesterday’s White House press briefing, Press Secretary Jay Carney responded to Chu’s walking back his 2008 statement on gas prices.
"I know that it's part of the fun for folks to find these quotes and suggest that they have some deeper meaning, and maybe that would be the case on Day One of the presidency. But we're in the fourth year of the presidency, and this president has a very clear record."
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Hard for me to believe the conspiracy that President Obama is intentionally hurting the middle/lower class by purposely driving the cost of gasoline higher.
Uncommon, it's a crazy conspiracy theory. For one thing, no president R or D would purposely raise gas prices in an election year when they were running for re-election. When I heard Liz Cheney and Karl Rove making that argument, even if I was still a republican, I would have laughed at the notion.
What a foolish spin.
If Obama didnt "intentionally" raise gas prices, he is off the hook?
Intentionally or recklessly, Obama failed miserably, kowtowing to his radical environmental base.
Offering algae as his policy.
Bob,
Re Algae
Republicans from Rep. Mike Pence (R-IN), Rep. Darrell Issa (R-CA) to Sen. Mike Johanns (R-NE) have requested Department of Energy grants for algae research. All three lawmakers wrote that algae investments would reduce America’s oil use. For instance, Johanns wrote that an algae biotechnology center “would develop technology to decrease our dependence on imported oil.”
Republican allies in the oil industry have also invested in algae, including No. 1 oil lobbyist ConocoPhillips and Exon Mobil, which sunk $600 million in algae biofuel research.
Dennis,
How are you today? Hope all is well in Ohio.
I agree we need alternative fuel sources. I feel if Algae and other forms might be productive then I would think the private sector would be investing heavily. I don't mind the federal government spending some money, but we just don't have it right now and we can't keep adding to the national debt.
I read your posts where you say the highest price of gas was in Jun 2008, but you can't compare Jun to Feb due to the summer driving for vacations. (If people can afford to go on vacation, lol).
I believe I mentioned this to you before and I will again, come May or June or maybe before President Obama will release maybe 50 million barrels of oil from the Strategic Petroleum Reserve, just as he did in Jun 2011 when he released 30 million barrels, which did drop the price a little.
If we had tapped the oil reserves years ago in Alaska and off shore oil we would be in much better shape to work on alternative fuels. I remember every time more drilling came up, it was the same excuse that it would take 7 to 10 yrs to get the oil to market. That was 7 to 10 years ago.
Hi Sarge – been better but thanks for asking
The private sector does not want to take risk with shareholders money without some guarantee in either a high probability of success or a Government backed loan. That is how it has worked since before we were born. Especially in areas where we only have theories and need to build large scale test models.
I only point out the record high because others imply that we are at record highs today. Last year at this time we were at the highest levels for this time of year also and for the entire year we set a national high annual average price. I also believe given the world issues this summer we will see a new record set. It doesn’t help when 2 refineries are shut down and two more are on reduced capacity as we move into blend change-over season.
Are oil companies trying to make sure prices stay high?
Is this another do over?
Is algae another corn-based fuel substitute that uses more carbon based fossil fuel to produce than received?
How many tons of algae does it take to produce one gallon of fuel?
Looks like our president is not really sure what he is talking about. First he says he knows what (at least part of) the problem is then he says nobody can do anything about it. Guess he must have been telling 2 different groups what each wanted to hear.
How about this: Get our war ships out of the Persian Gulf and watch a $10 drop (minimum) in a day on a barrel of oil!
Until you can say there is no way speculation of war with Iran is pushing oil prices higher there is something the president can do about lowering them!
So are all the animals safely in the barn on this question ... no, I hear the heard waving the banner of mendacity, running in the coral on two feet.
At least something is running! My new washer isn't!
... ah the good old days when you could have bought an American made Maytag that would run all day for 20 years and starve the repairman.
Ideology,
I refuse to tell you the new machine was a Maytag (had all the bells & whistles, too). Son of gun didn't even make it through its first SMALL load. That motor went up in a flash. Replacement comes tomorrow.
Great post, Uncommon. Thanks to Chu for clarifying both his stance and the President's on this issue.
People who get all caught up in conspiracy theories are just so darn cute! They get all puffed up and just say the darnedest things. Hey! Maybe it could be a new tv show. I am open to the name of it.
If there is any conspiracy, and there probably isn't, it would seem more likely that a conspiracy exists among petrolium speculators to raise and keep oil prices high so as to make Obama look bad. Their motivation is his support for alternative energy and not believing in drill baby drill at the drop of a hat. The delay of the pipe bringing oil from Canada is a talking point although not due to Obama alone either. State governors made the request for continued study and to put the project on hold but not to scrap it altogether.
They can blame it on Iran and possible blockage of the Strait of Hormuz but there are sources of oil that do not go through Hormuz and by working with them we can starve Iran's income while getting oil from less hostile nations at a lower cost. But there is no incentive to do that so speculators, who gain to make a hughe killing on higher prices will allow for the excuses and so forth for higher prices.
Makes you wonder about Wall Street and big oil that's for sure.
We buy most of our oil from Mexico and Canada. The US is exporting 113 million gallons of gas every day. There is no shortage of gas so there is no logical explanation except oil speculators driving up the price because of middle east fears.
Jody---I would add to middle east fears plain old greed by the speculators.
Well Jody, Obama has a great track record of financing solar programs, and he does do well with the car industry. Why not have him tell big oil that any gasoline found and refined in the US must be sold in the US?
He's mandated much for Health Care, how about an energy policy, and what a way to establish one.
Can't wait to hear why he couldn't?
Way back in the late 70's when we had the oil crisis in the middle east, I remember thinking that the best way for us to be less addicted to oil, to get us into smaller more fuel efficient cars (they did make a few then) was for gas to be as expensive as it was in Europe. Remember those long lines at the gas pump, remember the signs that said Out of Gas, remember designated purchase days. Wonder what republicans called it back then, socialist and un-American? Does that make Chu and me wild-eyed environmentalists? Well, in the eyes of the anti-science crowd--yes.
When Secretary Chu said that in 2008, he was probably thinking logically just as I did way back during the first big oil crisis that I recall--higher gas prices would force us to look for alternative fuels, to buy smaller cars, to consider public transportation. We didn't after the oil crisis when I felt having higher gas prices made sense; in fact, we built and bought bigger vehicles. Wages were still keeping up with increases. Then there was a wake-up moment for not just a few of us; now wages no longer keep up with the cost of living least of all with higher and higher gas prices. We have seen with each oil and gas price increase, the cost of gas never returns to its previous lower level or below. These days, no one has to purposely increase the price of gas because with each sharp increase, we became more aware, we bought smaller cars, we are now manufacturing hybrids and eventually we will have all-electric cars or some version yet to be developed.
Reducing by as much as 45%. To that end, the Car Care Council offers these simple steps to reducing your fuel costs without having to trade in your existing model:
Ideology,
To add to your post, in the summer, use a sun screen for your windshield, it helps to keep your car cool and you won't have to use the a/c as much.
I tried sunscreen on my windshield but it kept melting off. I did like the coconut smell though. What SPF should I use? ;-)
Sorry, phine, I coudn't help it! ;-)
LOL!!!! After the day I have had I needed that laugh! Thanks!
if the granting of permits to oil companies were NOT at a high level, if our production of oil and gas were decreasing then maybe one could say this administration is anti oil.
The level of low information people on this site is unbelievable. We realize you dont like Obama, just as we didnt like Bush, but get a grip on reality folks.
Get the hook. Time for Steve to go. A valid criticism of Obama is his reluctance to shed staff drawing lightening. Brilliant scientist, great fellow, well liked but brain dead politically. Too much baggage!
Cut him lose Barry or jeopardize your Administration.
Anyone care to guess why gas costs so much in Europe? Taxes! The cost to refine gasoline from crude oil is the same everywhere in the world. So, to get to $9 a gallon like it is over there, all you have to do is raise the federal tax from $0.48 per gallon to $5.66 per gallon (current pre-tax spot price of unleaded is $3.34). Can any of you actually imagine any politician suggesting that in an election year? Or any other year, for that matter?
If Obama, or any previous president from either party since Nixon, actually had an energy policy that had as its goal a stable, cost effective supply of energy, we would be making liquid fuel from coal (cost effective at $50 a barrel), selling natural gas powered cars by the trainload (natgas is about 20% the cost of gasoline for an equivalent amount of energy), building nuclear powerplants with current technology (but please, not inches from the surf in seismic zones), and maybe even throwing in a handful of new gasoline refineries, since there hasn't been a new one built in this country since GERALD FORD WAS PRESIDENT!
A real energy policy requires focusing on the things that we have, that we know can be made to work, and that we can bring online within a few years. Hoping for "the next big breakthrough" in wind, or solar, or batteries, gets us to exactly the energy policy we have today, which amounts to no policy at all.
Hey Bill from CA,
What do you think of that Progressive Spending Party wing-nut in our state legislature that is advocating for a 15% rise in the state-owned fuel tax program.
I don't know about you, but I paid $4.59 gal for regular today. Love that 'Hope and Change'. I hoped, but no change!
Absolutely correct. We don't need breakthrough technology, we have plenty of proven alternatives to gasoline engines. The infrastructure to deliver natural gas is in place. Exchange your LP gas tank at WalMart when you replace your bar-b-que tank.
Natural gas burns clean and has been used as a motor fuel for over 100 years.
And the farm fields in our neighborhood are listed as one of the largest natural gas repositories in the US. My brother-in-law runs a fleet of vans on NG with great results and lower fuel costs. And the state of FL helped the expense for him too.
I hope this means the president also no longer shares that view.