With gas prices rising, Obama announces new gas task force

With gas prices nationwide averaging close to $4 per gallon, President Obama announced today that the U.S. attorney general is creating a task force to root out any cases of fraud or manipulation in the oil and gas markets that might affect gas prices.

"We are going to make sure that no one is taking advantage of the American consumers for their own short-term gain," Mr. Obama said at a town hall meeting at the renewal energy company ElectraTherm in Reno, Nevada.

At the current prices, the average American will pay about $750 more for gas this year, per car, CBS News' Bill Whitaker reports, and some 75 percent of Americans say they are now or soon will be pinching pennies.

Mr. Obama said he could relate.

"I remember before I was president the last time gas prices went up this high -- it's tough," he said. "Maybe you don't have the money to buy a new car that gets better gas mileage... I've been there. It hurts...This gas issue is serious."

The new gas task force, called the Oil and Gas Price Fraud Working Group, will include representatives from the Justice Department, the National Association of Attorneys General, the Commodity Futures Trading Commission, the Federal Trade Commission, the Department of the Treasury, the Federal Reserve Board, the Securities and Exchange Commission and the Departments of Agriculture and Energy.

"If illegal conduct is responsible for increasing gas prices, state and federal authorities should take swift action," Attorney General Eric Holder said in a statement today.

In addition to monitoring the causes of rising gas prices, Mr. Obama said that it's time to put more investments in alternative energy sources. ElectraTherm, where the president spoke today, received $982,000 from the Energy Department last year for research and development in alternative energy production. The award was part of a $20 million Energy Department initiative to develop geothermal technologies.

Watch Bill Whitaker's report on gas prices in the video at left.

The president, referring to Republican Rep. Paul Ryan's proposed 2012 budget, said he rejected the proposal to cut clean energy spending by 70 percent.

"We're not going to reduce our deficit by gutting our investment in clean energy and medical research and basic science," Mr. Obama said today. "I refuse to make that choice."

"I want new technologies invented here," he continued. "I want companies like ElectraTherm to set up shop here in America, and hire American workers, and build American products. That's the future we deserve."

Instead, Mr. Obama said, Washington should cut the $4 billion in subsidies that to oil companies "making record profits."

"These folks don't need more incentives," he said, adding that his administration has sought to encourage domestic oil production.

"Instead of subsidizing yesterday's energy sources, let's invest in tomorrow's," he added.

The president argued that it's not worth sacrificing investments in infrastructure in order to cut the budget deficit. As he did earlier this week, Mr. Obama invoked the 2007 collapse of the Interstate 35-W bridge in Minneapolis while criticizing Republicans' proposed cuts to infrastructure.

"Remember what happened in Minnesota? where that bridge just collapsed?" Mr. Obama asked. "There are bridges like that all across the country."

While experts say America's aging infrastructure is a significant problem, the bridge collapse in Minnesota, which killed 13 people, was found to have been caused primarily by a design flaw.

The president's town hall today was part of a three-day west-coast tour that included town hall events (the other was in the San Francisco Bay Area on Wednesday) and six fundraisers for his 2012 reelection campaign.

[The_Libertarian]

Another task force? Isn't it time for a Blue Ribbon Panel?

A Task Force is so 2009; remember when he appointed a task force to balance the budget, and then ignored each and every recommendation they made?

[Williammoon1995]

What we need to do is make a vehicle that can run on it's own energy from it's own moving parts. For example, we could put nobs that rotate as the tires spin. As the tires spin, it's creating more energy for the electric car to keep running, maybe more. We can make it look good, and make it a cheap price. We can fix all of our energy problems by using energy to create more energy from running parts that are already using up energy. We can use up and make more energy at the same time by doing this. We could use less resource. There's no reason why this should be happening, as far as we have gone with technology and we can't do this. This is simple stuff, and simple thinking. Perfect example of how controlled, manipulated and conditioned we are. It doesn't make since. Lucky I don't have to drive yet. Adults make kids look like geniuses. We have all these wars and ****, and turn around and tell the kids not to fight. You think there going to listen to us if we are doing the opposite? We are setting bad examples also. I bet they know Adults are liars at this age. We don't make since. The kids aren't even going to be able to trust anybody but themselves the way we got things. I can see something happening very soon. I'm tellin you, it's not going to go on forever.. SwAgGa

[The_Libertarian]

>>> This is simple stuff, and simple thinking

Simple thinking is a good description of your thought process. Have you ever heard of this thing called "friction"?

[xb2500]

Invest more into alternative energy, is that d?j? vu or what? "I remember before I was president the last time gas prices went up this high" is that a Obamanism or what? Isn't that a twist between faulting a prior administration with faint hint of accountability?

Who would have thought we'd need a gas task for to determine if illegal have occurred three years in. Perhaps, a better investment would have been task force to determine if healthcare or energy cost had a higher economic impact to Americans.

Seems the gas task force should only have to review the concept of supply and demand economics, while the goverment investors should review the concept of supply chain relative to existing alternatives prior to furthering their investment. I can't imagine a plan taking more than six months, but then again that would be too soon for the primaries and God forbid an answer is known prior to the election :)

[knewsreply]

In 1911 the Supreme court broke up Standard Oil, but are the Rockerfellers still have the largest stock holdings in all the smaller oil companies? Are our tax subsidies really just paying a few families to live is high life style? Can an investigation help us know who really benefits from these tax subsidies? I don't know the answer, but maybe some of you know. Thanks

[simpleconservative]

The first thing you need to understand is that the term "Subsidy" applies to taxes which are not collected. The government does not pitch in cash, they simply agree not to pick the pockets of the oil companies if the companies continue exploring for oil in order to keep costs down for all Americans! Any change in tax treatment for these companies will simply show up in the price at the pump. Large corporations do not pay taxes, the general public does through the prices they pay for goods and services. The Rockefellers lifestyle will not be affected in any way. This age old Democrat mantra of "Tax the Corporations" is code for tax the dummies who vote for us with a tax that is hidden in everything they buy and we Dem's look like heroes for going after those evil corporations!

[Gasgirl666]

End the oil subsidies with our tax money. Gasoline is the root of cancer. The oil industry spends tens of millions annually bribing congress according to published PAC records. Every known use of petroleum can be replaced by other green products. Have you seen the proof at: http://www.gasolinecausescancer.com

[LadyGoodmann]

Oil should be regulated like the utility it is, similar to electricity and water. Oil companies have made more than their fair share off of everyone; it's past time that their joy ride be over. If countries were to pool their dollars and negotiate with those who own these natural resources as a group, they could get a better deal for all, kind of like big companies and groups of smaller companies pooling their employees in order to better negotiate with insurance companies for lower premiums.

Then, of course, we'd have to find something else to fight about. But know this: "We are our brother's keeper. If those in a position to give of their means, wealth, education and position do not take these truths into consideration, then there must be that leveling that is to come." Edgar Cayce.

[gep1955]

Has anyone else noticed the pattern here. For every crisis he appoints a panel of experts to 1) Delay any final decision, and 2) any decision made isn't his.

[slatep]

Obama said yesterday he can relate to people's frustration about the crising cost of gasolone prices.

ARE YOU KIDDING ME.?

OBAMA MADE $1.8 MILLION LAST YEAR, and I have never seen him in a gas station filling up on his own dime.

Looks like he's beggining to recognize his failure in the office of President and is now going to try for a career as a comedian.

[tsigili]

More Obama political rhetoric.

Obama actually has said that Americans have to pay more for gas, to discourage using it. He hasn't come up with a good answer, for NOT using it, of course.

[Parsifal_tx]

Gas prices aren't going up - the value of the US dollar is going down. Our dollar is worth less and it's purchasing power has been diminished by the actions of the Fed.

Someone needs to arrest Ben Bernanke the biggest fat cat thieving banker in the world.