John Edwards for President-Fighting Record Gas Prices And Building The New Energy Economy

Fighting Record Gas Prices And Building The New Energy Economy

"Families are spending $1,000 more a year on gasoline than they did in 2001, fueling massive profits for Big Oil. We need to stand up to the big oil companies to create affordable choices for regular families."
– John Edwards

Gasoline prices are now near an all-time record high. Families are spending $1,000 more a year on gasoline than they did in 2001, helping the top six oil companies collect $477 billion in profits over the past six years. Exxon Mobil earned $40 billion last year, the largest annual corporate profit in history. Since January, gas prices are up 43 percent while wages are up less than 2 percent. America's dependence on oil not only leaves families vulnerable, but it compromises our national security and contributes to the crisis of global warming. [CFA, 2007; AAA, 2007; EPI, 2007]

Today, John Edwards announced his plan to fight rising gas prices by promoting greater competition in the gasoline market. He called for an immediate investigation into the causes of higher gasoline prices, including the anticompetitive structure of the oil industry, and for stronger enforcement of laws to ensure free and open competition. He also proposed his plan to create a New Energy Economy with biofuels, electric and hybrid vehicles, and more fuel-efficient cars and trucks.

Bringing Down Gas Prices Through Greater Competition

John Edwards believes immediate action is necessary to offer families relief from rising gas prices. Today, he called on President Bush, Congress, and state leaders to:

Investigate the Anticompetitive Actions of the Oil Industry: A wave of mergers in recent decades has led to a consolidated oil industry; in the last decade, 21 companies have merged into eight. Vertically integrated companies like Exxon Mobil own every step of the production process—from extraction to refining to sale at the pump—enabling them to foreclose competition. The government has President Bush, Vice President Cheney, and the chair of the Federal Trade Commission are all former oil industry insiders. Today, Edwards called for an independent Justice Department investigation into the consolidation of the oil industry, the causes of higher gas prices, and solutions to the problem. [GAO, 2004, 2007; Kimmelman, Plunkett, Mierzwinski, 2004; Slocum, 2001]
Strengthen Antitrust Laws: In 2001, the FTC found evidence of oil companies intentionally withholding supply to raise prices, but could not prosecute this anticompetitive activity because there was no evidence of an agreement among rivals. Edwards called on Congress to modernize the Clayton Antitrust Act to make oil and gas companies liable for unilateral anticompetitive acts—such as withholding supply in order to raise prices—even without an agreement. [FTC, 2001]
Reverse Enron-Era Deregulation of Energy Markets: Since the deregulation of the commodity futures trading market in 2000, oil markets have been vulnerable to manipulation and speculation. Edwards called for Congress to restore basic transparency and oversight, such as requiring public reporting of large trades, to help identify and deter market manipulation. [U.S. Senate Committee on Homeland Security and Government Affairs, 2004; CFTC, 2007]
End Taxpayer Subsidies for Oil Companies: The oil industry—which has written our nation's energy policy for years—receives $2 billion a year in tax breaks for drilling they would undertake anyway. It also collects $1 billion a year in sweetheart oil leases in public waters. Edwards called on Congress to repeal these subsidies and reinvest the savings in affordable, clean, and renewable energy.
Require Oil Companies to Invest in Clean, Reliable Refineries: Oil refining profits are up 158 percent since 1999, but overloaded refineries running at nearly 90 percent capacity have left the gasoline supply vulnerable to disruptions and price spikes. New investments to reduce harmful emissions can also increase productivity, safety, and reliability. Edwards called on states to enforce Clean Air Act standards to require oil companies to modernize their refineries, making them cleaner and more reliable. [Slocum, 2007; Newsday, 5/7/07; New York Times, 1/17/2007; GAO, 2007; EPA, 2006]

Building A New Energy Economy With Renewable Fuels And Energy Efficiency

America's need for imported oil forces it to rely on unstable and hostile countries while contributing to the crisis of global warming. John Edwards' plan to fundamentally transform our cars and trucks is part of his plan to cap global warming pollution and cut it by 80 percent by 2050. Edwards believes that we can cut oil imports by 7.5 million barrels a day by 2025—nearly a third of the oil projected to be used in 2025—and get us on a path to be virtually petroleum-free within a generation.

To jumpstart our investment in the future, Edwards will create the $13 billion-a-year New Energy Economy Fund, financed by the sale of greenhouse gas pollution permits and the repeal of subsidies for oil companies. Among other investments, the Fund will:

Create New Competition by Supporting Biofuels: Millions of cars already run on both gasoline and E85 (a blend of ethanol and gasoline), but only about 600 of the nation's 169,000 gas stations have E85 pumps. Edwards will require oil companies to install ethanol pumps at 25 percent of their gas stations and require all new cars sold after 2010 to be "flex fuel" cars running on either gasoline or biofuels. He will also set a national goal of 65 billion gallons of ethanol a year by 2025 and invest in new, sustainable and efficient methods of producing and using biofuels. [RAND, 2006; DOE, 2005; USDA, 2005]
Raise Fuel Economy Standards and Help U.S. Automakers Modernize: Everyone should be able to drive the car, truck, or SUV of their choice and still enjoy high fuel economy, but American cars and trucks are less efficient than they were two decades ago. American automakers have the ingenuity to lead the world in building the clean, safe, economical cars of the future. Edwards will raise fuel-economy standards to 40 miles per gallon by 2016, a step that could single-handedly reduce oil demand by 4 million barrels per day. He will also provide $1 billion a year to help U.S. automakers advance and apply the latest technology, including biofuels, hybrid and electric cars, hydrogen fuel cells, ultra-light materials, and drive train improvements.