Gas rose $0.40 under Clinton, $2.60 under Bush

House Majority Leader Steny Hoyer (D- MD) focused on the rising price of gas in his weekly sit-down with reporters. He showed a series of charts that indicated the rise in the price of gas over the last 16 years. Under the Clinton administration, Hoyer said, the price of gasoline went from $1.06 to $1.46 in the course of Clinton's eight years. A separate chart demonstrated that under the Bush administration gas has gone from $1.46 to $4.06, which is the current national average. This is the House Democrat response to the campaign against the "Pelosi Premium" pointing out the price rise under Bush instead of under Democratic majority in Congress. All of Hoyer's data came from the Energy Information Administration at the Department of Energy.

Hoyer admitted that across Congress all the energy plans being offered are mostly designed at long term relief. He said that Democrats have done their part to reduce prices by passing anti-gouging legislation and working toward regulation of speculators, but that there are very few things that Congress can do to reduce prices in the short term. In response to the Republican measures that call for more drilling and more refining capacity, Hoyer pointed out statistics that suggested that drilling in ANWR would only lead to a 1.8 cent drop in gas prices by 2030.

Hoyer also mentioned Rep. Dennis Kucinich (D-OH) introducing articles of impeachment against President George Bush, taking up a total of four and a half hours of floor time. Hoyer said that he expect this to be referred to committing with out a second read-through, effectively tabling the bill.

Today at Talk Radio News Service

The Washington Bureau will cover an Oversight and Government Reform Committee hearing on "Accountability Lapses in Multiple Funds for Iraq," a subcommittee of the House Judiciary Hearing on "Retail Price of Gas and Competition in the Oil Industry," and a subcommittee of the House Homeland Security Committee on "The Border Security Challenge: Recent Developments and Legislative Proposals." A correspondent will also cover a Senate Special Committee on Aging hearing on "Seniors at Risk: Improving Medicare for Our Most Vulnerable." Later, the Washington Bureau will cover a House Oversight and Government Reform Committee and House Financial Services Committee joint hearing on how the mortgage crisis afflicts neighborhoods, as well as a Senate Judiciary Committee hearing on how to provide legal assistance to low-income Americans.

Pentagon Correspondent Meredith MacKenzie will attend a pen and pad briefing with the Senate Leadership, including Majority Leader Harry Reid (D-Nev.), as well as a press conference with House Speaker Nancy Pelosi (D-Calif.).

Correspondent Dawn Jones will cover a Senate Armed Services Committee hearing on the nominations of Gen. David Petraeus "for reappointment to the grade of general and to be commander of the United States Central Command," and Lt. Gen. Raymond Odierno "for appointment to the grade of general and to be commander of the Multi-National Force-Iraq."

Global food prices up 43 percent

The Senate Foreign Relations Committee held a hearing on “Responding to the Global Food Crisis,” focusing in particular on U.S. agricultural investment in foreign nations and how the development of corn-based ethanol and other biofuels have contributed to the rise in food prices.

Edward Lazear, chairman for the Council of Economic Advisors, said that global food inflation was 43 percent during the 12 months ending in March 2008. He emphasized that Americans spend less than 14 percent of total expenditures on food, while Africans spend about 43 percent and for the poorest populations in Sub-Saharan Africa subsisting on less than one dollar per day, this figure may be as high as 70 percent.

Lazear testified that wheat prices have increased 123 percent, soybeans 66 percent, corn 37 percent, and rice 36 percent. Emerging market consumption, he said, has increased by 45 percent from 2001 to 2007 compared to 1991 to 2000, and that this increase in demand accounts for about 18 percent of the rise in food prices. Other factors, he said, are adverse weather conditions that destroy crops and to a smaller degree, ethanol production. He said that the world’s ethanol production accounts for approximately 13 percent of this year’s 37 percent increase in corn prices, and since corn makes up a small fraction of the International Monetary Fund’s Global Food Index, it is responsible for only about 1.2 percent of the year’s 43 percent total global food price increase.

U.S. Agency for International Development Administrator Henrietta Fore testified that the world’s one billion poorest people are living on one U.S. dollar per day, and that while Africa and Asia suffer most from this kind of poverty, Haiti is also facing a crisis. She also said that three-quarters of the world’s poorest people living on less than 50 cents per day are located in Africa. She advocated changing trade policies that present barriers to food supply and said that U.S. agricultural investment would be “enormously positive.” She mentioned that “even short term hunger” can “unalterably” affect a child through increased risk for disease, cognitive and developmental malfunction, and early death.

Sen. Richard Lugar (R-IN) said that people in nearly 40 countries face food shortages and potential civil unrest as a result. In 1980, he said, agricultural projects accounted for 30 percent of World Bank spending, whereas in 2007 that number was less than 13 percent. Along with Chairman Joe Biden (D-DE), he called for a “second Green Revolution” to increase agricultural research, development, and investment in order to augment yield per acre of crops by improving techniques. He said such an initiative would “benefit developed and developing countries alike,” as would removing trade barriers and tariffs. He also said that ethanol research cannot be curtailed because of its contribution to food price increases because it would put additional pressure on oil prices, which he emphasized is already at $120 per barrel.

Senate urges pressure on Saudi Arabia to increase oil production

Five senators held a press conference today immediately following a vote on a Democratic proposal to “suspend filling the nearly full Strategic Petroleum Reserve (SPR) in order to increase supply and lower energy prices,” the official release said. Sen. Charles Schumer (D-NY) said that Saudi Arabia currently produces nearly two million barrels of oil per day below capacity, and said that prices would likely lower by 50 cents per gallon in the next month or two if they increased production by just one million barrels per day. Schumer said that himself and the other senators wanted to present President Bush with a “motion of disapproval” of the Saudi arms deal, and urge him to put pressure on the Saudis to increase productivity and lower prices as he leaves for his trip to the Middle East today. “We are saying to the Saudis that ‘if you don’t help us, why should we be helping you?’” Schumer said. “You need our arms, but we need you to cooperate and not strangle American consumers.”

Sen. Bernard Sanders (D-VT) said that OPEC functions as a cartel, and that it is time for Pres. Bush to say to OPEC that “we are going to challenge their very existence,” so they can no longer “limit production and artificially raise prices.” Sen. Bob Casey (D-PA) said that Bush “needs to demonstrate leadership,” and while he is “talking to the Saudis about oil production as he should, he should have done it long ago.”

Sen. Amy Klobuchar (D-MN) said that she is “pleased” that the Senate was able to pass the amendment today, but she “would rather see a comprehensive package.” She added, “but if we’re going to have to do it one scrap at a time, that’s how we’ll do it.”

A new "Manhattan Project:" Energy challenges for the next president

The Brookings Institution held a discussion on energy challenges for the next president of the United States, where Sen. Lamar Alexander (R-TN) spoke about his Seven “Grand Challenges” for the next five years. The 5-year proposal, which he calls “A New Manhattan Project,” includes integration of plug-in electric cars and trucks, carbon capture for coal-burning power plants, cost-competitive solar power, nuclear waste management, advanced biofuels made from inedible crops, green building construction, and fusion energy.

Alexander said that the idea behind the original Manhattan Project, which was implemented during World War II to help America secure a nuclear weapon before Germany, is relevant to today’s energy situation because “it needs to proceed as fast as possible along several tracks to achieve the goal.” Centralized leadership that channels the talent of many great minds, Alexander said, is necessary to the invention of revolutionary energy ideas so that America need not be “held hostage” by oil-rich foreign nations.

While some people feel that election year is “no time for bipartisan action,” Alexander said he “can’t think of a better time” and expressed his support for presidential candidate Sen. John McCain’s (R-AZ) decision to dedicate this week of his campaign to energy independence discussion. Alexander called Republicans the “party of supply” and Democrats the “party of demand” in reference to their respective solutions to both energy independence and climate change.