US: August 4, 2008


With US crude oil prices hitting record levels above US$147 a barrel before retreating and retail gasoline pump prices topping US$4 a gallon, energy is a a major issue in the 2008 US presidential contest.


Here is a look at what Democratic candidate Barack Obama and his Republican rival John McCain are saying about energy issues.


OFFSHORE DRILLING:

Obama - opposes lifting moratorium on drilling on federal lands off the US coast. "At best you're looking at five years or more down the road and even the most optimistic assumptions indicate that offshore drilling might reduce the overall world price of oil by a few cents," he said.

McCain - supports tapping the estimated 18 billion barrels of oil on the US outer continental shelf. "We can do this in ways that are consistent with sensible standards of environmental protection," he said.


SPECULATION ON OIL FUTURES MARKETS

Obama - proposed requiring US energy futures to trade on regulated exchanges; wants more data gathered on index funds and other similar types of investors in futures markets; backs legislation directing Commodity Futures Trading Commission to investigate proposals such as increasing margin requirements; supports fully closing Enron Loophole.

McCain - has expressed concern about excessive speculation in futures markets; also supports closing Enron Loophole; supports investigations into possible market manipulation; supports reforming the laws and regulations governing the oil futures market to make them more transparent and effective.


NUCLEAR POWER:

Obama - supports nuclear power, but says disposing of nuclear waste from US plants and resolving nuclear proliferation concerns are also important. "I don't think it's our optimal energy source because we haven't figured out how to store the waste safely or recycle the waste," he said.

McCain - wants to build 45 new nuclear reactors by 2030, and ultimately wants 100 new nuclear plants built in US "If we're looking for a vast supply of reliable and low-cost electricity -- with zero carbon emissions and long-term stability -- that's the working definition of nuclear energy," he said.


GAS TAX HOLIDAY:

Obama - opposes temporarily lifting the federal tax on gasoline; says the suspension of the tax would save each American family less than US$30. "This isn't a real solution," he said.

McCain - proposed the gas tax holiday; would divert funds from general government revenues to pay for transportation projects funded by the tax. "Let's give low-income Americans a break for the summer and realize maybe they deserve it, given the increase in food costs, given the increase in the cost of gasoline, given the increase in expenses particularly when most of them are on fixed income or even worse, having lost their jobs," he said.


CLIMATE CHANGE:

Obama - wants to cut carbon dioxide emissions to 80 pcercent below 1990 levels by 2050; reduce emissions to 1990 levels by 2020; require fuels suppliers to cut carbon content by 10 percent by 2020.

McCain - favors cap-and-trade CO2 approach; sponsored bill in 2007 to cut emissions by 30 percent by 2050;


OIL USE:

Obama: wants to reduce overall oil consumption by at least 35 percent, or 10 mln bpd, by 2030, to offset imports from OPEC nations.

McCain - wants United States to be independent from foreign oil by 2025


ENERGY RESEARCH:

Obama - wants to invest US$150 billion over 10 years on low-carbon energy sources; double R&D spending on biomass, solar and wind resources; accelerate commercialization of plug-in hybrids, invest in low-emissions coal plants.

McCain - proposed offering a US$300 million prize to the auto company that develops a next-generation car battery that will help America become independent from oil; commit US$2 billion annually to advancing clean-coal technology.


ARCTIC NATIONAL WILDLIFE REFUGE:

Obama - opposes ANWR drilling.

McCain - wants more oil drilling on some Outer Continental Shelf lands, does not support ANWR drilling "at this time."


VEHICLE FUEL ECONOMY:

Obama - wants to double fuel economy standards in 18 years; give automakers tax credits to retool plants and invest in advanced lightweight materials and new engines.

McCain - has not specified CAFE targets (did not vote on 2007 ESA); voted against energy amendments in 2003 that would have boosted CAFE to 40 mpg by 2015; supports increasing fines for car companies that do not meet CAFE standards; wants to provide tax credits based on vehicles' carbon emissions.


BIOFUELS:

Obama - wants to boost Renewable Fuel Standard to at least 60 billion gallons of advanced biofuels like cellulosic ethanol by 2030; build out ethanol distribution infrastructure, mandate that all new vehicles be "flexfuel" by end of his first term, produce 2 billion gallons of "cellulosic" ethanol from non-corn sources like switchgrass by 2013.

McCain - favors ethanol incentives after opposing them in the past; generally opposes subsidies and tariffs that distort marketplace.


ELECTRICITY:

Obama - wants to require US utilities to get 25 percent of their electricity from renewable sources like wind and solar by 2025.

McCain - wants to reduce red tape to increase investment to upgrade the national grid; wants national grid to have capacity to charge electric cars on a mass scale; supports use of SmartMeter technologies, which give customers a more precise picture of their energy consumption and encourage more cost-efficient use of power.


YUCCA MOUNTAIN:

Obama - opposes storing nuclear fuel at Yucca Mountain repository in Nevada desert; but says nuclear power should be on the table to meet climate goals.

McCain - supports Yucca and wants more nuclear usage. SOURCES: US Chamber of Commerce, individual campaign websites (Compiled by Ayesha Rascoe and Chris Baltimore; edited by Todd Eastham)


REUTERS NEWS SERVICE