Why Obama is Keeping Gas Prices High

That cat's been let out of the bag: the Obama administration supports high gas prices as part of a larger, more-focused agenda.

It's all starting to make sense: Obama’s rejection of the Keystone XL Super Pipeline, no resolution to high gas prices, aims to repeal subsidies for major oil companies, and the emphasis on environmental goals…

Obama supports high gas prices in an effort to bring his alternative energy agenda into action. It's an expensive endeavor, but could bring great rewards to America in the long-term picture. For now though, there's no easy way to go-green without the money to make it happen...

Essentially, Obama wants you to buy hybrid and electric cars – and he’s pushing you to do so by advocating for astronomical gas prices.

Yesterday, Obama gave a speech at Nashua Community College about his plans to manipulate the future of energy use here in the United States “including drilling, increasing vehicle fuel efficiency and investments in alternative fuels.”

Secretary of Energy Steven Chu admitted to a House committee that the administration has no desire to work on lowering gas prices…

“Somehow,” Chu said, “we have to figure out how to boost the price of gasoline to the levels in Europe.”

Meanwhile, Republicans disagree with this aggressive approach, blaming Obama for burdening the American people with the high gasoline costs. President Obama will challenge those attacks by focusing on his “strong record of developing new domestic energy sources.”

Consequently, Obama may lose re-election votes from many Americans struggling to put gas in their tanks in order to commute to and from work and still afford to enjoy their weekends…

This shouldn’t come as too much of a surprise. If you recall, Obama went around the nation last year speaking of his plan to purchase only alternative-energy vehicles for the U.S. fleet by the year 2015 and having at least one million electric vehicles out on the roads within that year as well.

Should Obama’s green-goals come to fruition, investors would be wise to invest in these alternative energy sectors now, before the movement really picks up pace.

However, the President himself doesn’t seem as optimistic about those goals as he did this time last year. Now, the administration is buying fewer hybrid and electric cars. Instead, they are investing in “vehicles with fuel-efficient conventional engines as the government learns that high costs and lack of availability makes it tough to go green.” 

According to Bloomberg, one critic said: 

“You can say you’re engaged in this behavior -- saving the world -- but it’s not a true picture of what you’re doing if the vehicles aren’t using alternative fuels,” said Rebecca Lindland, an industry analyst at IHS Automotive in Norwalk, Connecticut.

See why his green-car plan has run into some set-backs: 

 

In the near future, Obama intends to repeal roughly $4 billion worth of subsidies for big oil companies. Congress is set to vote on the issue within the next few weeks...