Kerry Press Release: Everyone but Bush knows energy prices are hurting us

[Skinner]

For Immediate Release
August 23, 2004

GEORGE W. BUSH: EVERYONE KNOWS HIGH ENERGY PRICES ARE HURTING THE ECONOMY BUT HIM

Two of George W. Bush’s chief economic advisors have finally admitted in recent days that higher energy prices are a drag on economic growth and are further squeezing the budgets of middle-class families. Yet, Bush continues to fill the Strategic Petroleum Reserve, paying top dollar to fill a reserve already at record capacity.

Kerry spokesman Phil Singer said: “Everyone knows high energy prices are hurting the economy except for George W. Bush. With a market spooked by instability in the Middle East, the president should be doing whatever he can to provide relief to families, but his refusal to stop filling the SPR sends a dangerous signal to the market which continues to drive up prices. John Kerry thinks we can do better, and has a plan to restore U.S. credibility in the world and stabilize the oil market.”

IT’S NICE BUSH’S ECONOMIC ADVISORS FINALLY REALIZE HIGHER ENERGY PRICES THREATEN ECONOMIC GROWTH:

· N. Gregory Mankiw, Chairman of the President’s Council of Economic Advisors: “High energy prices are now a drag on the economy, as well as a strain on family budgets.” (New York Times, 8/22/04)

· John Snow, Treasury Secretary: “We're seeing some slowing in the United States directly attributable to high energy prices.” (Reuters, 8/23/04)

· Federal Reserve Board Official: “A senior Fed official acknowledged last week that high oil prices will be a dampener on growth, citing studies that a sustained $10 increase in oil cuts economic growth by about 0.5 percentage point in a year.” (Reuters, 8/23/04)

BUT BUSH CONTINUES TO FAIL TO TAKE ACTION TO LOWER GAS PRICES AS AMERICA BECOMES MORE DEPENDENT AND CORPORATE FRIENDS PROFIT:

· George Bush Broke His Promise. On February 10, 2004, OPEC announced an agreement to cut its output quotas by 1 million barrels per day, starting in March. By March 17, crude oil prices in New York reached a 13-year high of $38.18 per barrel. George Bush’s silence on OPEC decisions has sent the signal that prices are not a concern. (Source: “Oil prices rise to 13-year high, threaten economy,” Washington Times, March 18, 2004)

· Risk Premium Costing Consumers at the Pump. Daniel Yergin, an expert in the oil markets, has estimated that the current price of oil is padded by what some have called a, “terror premium.” The Washington Post reported, “Daniel Yergin, author of a Pulitzer Prize-winning book on oil and chairman of Cambridge Energy Research Associates, estimates that anxiety and geopolitical risk have contributed $6 to $8 to the current $40 price of a barrel of oil.” (Washington Post, 5/23/04)

· Instability In Iraq Continues to Disrupt Oil Production. “Rising world oil demand has left little slack in the system to cope with outages in Iraq where Shi'ite militia have lived up to threats they will target oil infrastructure if U.S. forces do not leave the holy city of Najaf. Saboteurs on Thursday set fire to the headquarters of the South Oil Co. in Iraq's port city of Basra, witnesses said… Iraq's main southern pipeline from the Basra oilfields has been shut since the last sabotage attack on Aug. 9, curbing export flows to about a million barrels daily, half the normal rates, through a secondary line.” (Reuters, 8/19/04)

· America Has Become More Dependent on Foreign Oil. Over the past four years, America has become increasingly dependent on foreign oil. In 2000, 58.2 percent of the oil consumed in the United States was imported. That has increased to 61.7 percent today. (EIA, “Overview of US Petroleum Trade”)

· Bush’s Own Energy Information Administration Found the Bush Plan Wouldn’t Impact Prices. Bush’s own Energy Information Administration found that the effect of the proposal would be "negligible" with respect to production, consumption, imports, and energy prices. Just last week, the EIA reported that imported gasoline hit an all time high of 1.3 million barrels per day the week of April 16. (EIA, http://tonto.eia.doe.gov/oog/info/twip/twip.asp)

· Record Profits for Big Oil Companies While Consumers Are Gouged at the Pump: The higher overall gasoline prices have cost the American consumer a net of over $25 billion since George Bush took office. This money has gone directly from consumers pocketbooks into the hands of oil companies and oil producers, including OPEC. The big three oil companies in America have profited $33.6 billion over the past three years. (Based on EIA Monthly Energy Review; ExxonMobil, ChevronTexaco and ConocoPhillips Company Financial Reports)

· Families With Teenagers Are Paying $668 More Per Year on Gas Since Bush Took Office. With the increase in gas prices, families are paying on average $668 more per year on gasoline than they did when Bush took office. They will pay $2,789 this year on gasoline. (Department of Energy, Household Vehicles Energy Consumption 1994, Table 5.2, August 1997)

JOHN KERRY HAS A PLAN TO BRING DOWN HIGH ENERGY PRICES AND PROVIDE RELIEF TO FAMILIES:

· Manage the Strategic Petroleum Reserve to Protect our Security without Driving Up Prices. John Kerry would take the SPR fill program off of automatic pilot. The program needs better management – diverting oil from the market to fill the Strategic Petroleum Reserve at a time of exceptional tightness in oil markets as Bush has done, and continues to do, does not make sense today. Kerry would temporarily suspend filling SPR until oil prices return to normal levels.

· John Kerry Has A Plan To Restore Confidence And Credibility In The World to Provide Stability to the Oil Market. The failure of the Administration to internationalize the conflict in Iraq has lost us time, momentum, and credibility – and made America less safe and rattled the world oil markets. John Kerry will restore the credibility of the United States with a sincere effort to reach out to our allies and with a plan to restore order in Iraq. By creating stability in the Middle East, Kerry will help provide relief to the spooked oil market.

· Use a Renewed American Position in the World to Stand Up to OPEC Candidate Bush Promised to Arm-Twist OPEC. A Kerry Administration would act immediately to exert pressure on OPEC to increase oil supplies. As President, John Kerry will engage in diplomacy to ensure that US consumers are not held hostage to price fixing by OPEC. During the last year of the Clinton Administration, effective diplomatic pressure resulted in OPEC responding proactively to reduce prices

· Setting Goals to Increase Fuel Efficiency and New Investments to Assure American Industry Leads the Way. John Kerry believes that all Americans should drive the cars, SUVs, minivans and trucks of their choice, but that these vehicles can be more efficient, cheaper to operate, safer and more affordable. John Kerry believes that we need a realistic fuel economy standard, coupled with tax incentives for consumers to buy the vehicles they want and incentives for manufacturers to convert factories to build the more efficient vehicles of the future.

· Provide New Incentives for the American Automobile Industry to Produce Advanced Vehicles and Parts. John Kerry believes that the American auto industry should lead the world in building and selling efficient vehicles. He believes that the nation should provide assistance to American manufacturers for the conversion of existing vehicle and parts plants to build more efficient advanced technology vehicles. This assistance will help manufacturers accelerate the pace of conversion of their factories, make efficient vehicles available sooner, reduce oil dependence faster, and protect jobs in communities across the country.

· Help Americans Purchase Advanced Vehicles. John Kerry believes that we must provide consumers with incentives to purchase advanced technology and alternative fuel vehicles. The key to Kerry’s approach is to make the marketplace friendlier to these cleaner energy vehicles, which will include cars, SUVs, minivans, pickups, buses and trucks. Consumer tax credits will spur demand, stimulate the market, and enable manufacturers to increase production and lower costs.

-30-

www.johnkerry.com
Paid for by Kerry-Edwards 2004, Inc.

[Skidmore]

1. Need a cartoon with * asking

about a checkout scanner, with a barrel of oil being swiped through that has a $50/gal. sticker on it. Would illustrat that the little chip he is didn't fall far from the Poppy tree. Yup, he's his father's son--out of touch with the common man.

[Tandalayo_Scheisskopf]

2. The amount of Iraqi Oil on the market before the invasion...

was a relative trickle. Now, all of a sudden, it is the lynchpin upon which the world oil market turns.

Horseshit. Utter horseshit.

This is a gamed and manipulated market, partially because the strategic oil reserve is being filled. Salt caverns that had never seen a drop of oil are brimming and more are being brought online. Furthermore, the entire program is being administered, thatnks to a no-bid contract, by the Koch Brothers. Old contributors.

Our country is being run by a crime family and we are paying the premium.

[xray s]

3. We need a windfall profits tax

We had a windfall profits tax during the 70's oil crisis. Back then, people thought oil companies shouldn't make huge windfall profits off the American public during a time of crisis.

we need to resurrect that idea.

[Warpy]

4. he's saving up for the next war!

I'm not kidding. He knows his planned war against Iran will likely turn the spigot off in every middle eastern country and possibly in Mexico and Venezuela, as well. He's just saving it up for the military, folks, and to hell with you and me.