Obama Says US Should Take Advantage of Cheap Fuel With Oil Tax
(Bloomberg) -- President Barack Obama defended his proposal to levy a new $10-per-barrel tax on oil, arguing that low gasoline prices afford the U.S. an opportunity to finance dramatic improvements in its transportation systems.
"Right now, gas is $1.80 and gas prices are expected to be low for the forseeable future," Obama told reporters at the White House. It’s "important to use this period when gas prices are low to accelerate the transition to a clean-energy economy," he said.
The proposed fee drew swift objections on Thursday from oil-industry groups and congressional Republicans. The idea is part of a broader Obama administration plan to shift the nation away from transportation systems reliant on internal-combustion engines and fossil fuels. The plan envisions investing $20 billion to reduce traffic congestion and improve commuting, $10 billion for state and local transportation and climate programs and $2 billion for research on clean vehicles and aircraft.
"We’ll have a much stronger economy, stronger infrastructure, we’ll be creating the jobs of the future," Obama said.
It isn’t clear how the tax would be structured or who would pay it. White House officials said it wouldn’t be assessed at the wellhead. Exported oil wouldn’t be subject to the tax, though Obama misspoke during his remarks and said it would. Jeff Zients, director of the National Economic Council, told reporters on Thursday that the White House expects oil companies would pass on some costs of the tax to their customers.
House Majority Whip Steve Scalise, a Louisiana Republican, called the proposal "dead on arrival." Republicans "always say" that, Obama said.
He said he plans a larger speech on the oil tax "and the direction we need to go on this."
To contact the reporters on this story: Alex Wayne in Washington at awayne3@bloomberg.net; Justin Sink in Washington at jsink1@bloomberg.net To contact the editors responsible for this story: Craig Gordon at cgordon39@bloomberg.net Alex Wayne, Bernard Kohn
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension