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27/09/2005 | Bush taps into oil reserves and urges conservation

Caroline Daniel

President George W. Bush on Monday made a rare public appeal for Americans to share cars and curb non-essential driving as part of an effort to reduce high petrol prices following the two hurricanes that have struck the Gulf of Mexico coast.

 

“We can all pitch in by being better conservers of energy. I mean people just need to recognise that the storms have caused disruption and that if they are able to maybe not drive, on a trip that's not essential, that would be helpful,” he said.

For an administration criticised for focusing energy policy on bolstering supply, rather than limiting demand, his comments mark a remarkable shift. While the action has been triggered by the loss of 5.4m barrels a day of refining production from the hurricanes, it also reflects growing political pressure.

In an echo of the call for car-pooling in the wake of the 1970s oil crisis, and of President Jimmy Carter, who famously sought to restrict energy usage by wearing sweaters in the White House, Mr Bush called on federal agencies to help.

“We can curtail non-essential travel. If it makes sense for the citizen out there, it darn sure makes sense for federal employees. We can encourage employees to carpool or use mass transit.”

Mr Bush also pledged to open up the strategic petroleum reserves to help increase supply.

High energy prices - which have sent prices above $3 a barrel - have emerged as the chief economic concern in opinion polls, and have dragged down Mr Bush's ratings. One Republican strategist said: “He is getting a lot of political pressure to act against high prices, and the only way to address this in the short term is the demand side. Americans are inclined to see the price of gasoline as a leading economic indicator.”

According to a Pew poll this month, 27 per cent blamed the Bush administration for high energy prices, just below the percentage who blamed oil companies. However, the poll also found that the rise in energy prices had altered the public's view of the trade-off between boosting the energy supply and protecting the environment, with 57 per cent ranking it higher, up from 49 per cent in March.

US crude futures rose 56 cents to $64.75 a barrel on Monday as hurricane-related supply concerns crept back into the market.

Two months after his energy bill finally passed, Mr Bush suggested there was a need to re-open energy debates and to build refining capacity.

“The storms have shown how fragile the balance is between supply and demand in America. We've got a chance once again to assess where we are as a country when it comes to energy and do something about it.”

Spencer Abraham, former energy secretary, said: “We are now paying the price of going for such a long time for allowing opposition to prevent the building of new production and energy facilities.”

Financial Times (Reino Unido)

 


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