High gasoline prices 'reason to diversify' from crude: Bush

New York (Platts)--21Aug2006

US president George W. Bush Monday said high gasoline prices were a "tax" on
the American people and said it was" all the more reason to diversify away
from crude oil.

"Gas prices are like a hidden tax," Bush said during a press conference
from the White House broadcasted live. "Not a hidden tax, a tax. They are
taken money out of people's pockets. All the more reason to diversify away
from crude oil." But Bush, cautioned: "That's not going to happen overnight."

Citing his administration's efforts to diversify energy supplies away
from crude oil, Bush pointed to the passage of legislation "to encourage
consumption through different purchasing habits, like hybrid vehicles. We have
encouraged the spread of ethanol, as an alternative to crude oil."

Bush also cited what he said was the need for more US refining capacity.
"We have asked Congress to pass regulatory relief so we can build more
refineries to increase the supply of gasoline, hopefully taking the pressure
off of price," he said.

"So, the strategy is to recognize that dependency upon crude oil in a
global market affects us economically here at home and therefore we need to
diversify ourselves away from it as quickly as possible," Bush said.

--Richard Rubin, richard_rubin@platts.com

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