Gas Prices Top Issue

By Dave
Jun 10th 2008 11:38PM

Filed Under:eFeatured Stories, Economy, 2008 President, Taxes

Larry Kudlow on Oil

But here's an eye opener. Recent polling data from Gallup show the percentage of voters blaming oil companies for skyrocketing gasoline prices has dropped from 34 percent to 20 percent over the past year. At the same time, support for more drilling in U.S. coastal and wilderness areas has increased to 57 percent from 41 percent.
...
Obama continues to lambaste oil companies while congressional Democrats push for cap-and-trade. They're missing the point, big time. The public wants more energy and more fuel to cut high prices and spur economic growth. But the costly cap-and-trade plan would produce less fuel and less growth. It would only raise gas pump prices while mounting a Gosplan-type taxing, spending, and regulating program that would be the moral equivalent of Hillarycare on nationalized medicine.
Sen. McCain has an opening here. Yet he, like Obama, would have voted for cap-and-trade, which went down to defeat in last week's Senate vote. And while Mr. McCain favors some off-shore production and has been strong on nuclear development, he is against drilling in ANWR Alaska.

Hold that thought.... there does appear to be some movement on that issue, at least according to Lindsey Graham on Sunday:

On ABC's "This Week -with George Stephanopoulos," Sen. Lindsey Graham (R-S.C), a McCain friend and supporter, said the Arizona Republican would be open to talking about looking for oil and gas "in our own backyard."

"John McCain would allow offshore explorations, if the states consent," Graham said Sunday.


Graham's statement echoed the position McCain took in response to a survey conducted by the League of Conservation Voters last year. The League questioned all the 2008 presidential candidates about whether they supported maintaining current moratoriums on new offshore oil and natural gas drilling.

As convoluted as that statement is, it's still more coherent than most liberal Democrats on the subject of high fuel prices. The link is just one sample but sadly typical and refers finally to the attempt by the Democrats to pass a windfall profits tax on oil companies. Oil prices are bad, therefore we should tax the profits of the oil companies, which will make us all feel better, because everyone will get shafted equally... Huh? How about actually doing something that will affect the price of oil. I could almost see it if the windfall profits were to be distributed as rebates at the pump, but no, not exactly, they were planning to keep the money.

The bottom line is that the first presidential candidate to convince the public that he has a serious credible plan to reduce oil prices will go into the general election with a serious tailwind. John McCain, by simply not having to align with the environmental lobby, is at a structural advantage, but he needs to seize the opportunity

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