Mixing oil and US politics

Record US gasoline prices at the pump are proving a political headache for President George W Bush as he seeks re-election in 2004.
Americans, the world's most prolific drivers, are not used to paying upwards of $2 (£1.10) per gallon - even though this is far lower than prices in most of Europe and much of the rest of the world.
And now John Kerry, the Democratic presidential contender, and Mr Bush have been trading insults over their respective plans to keep petrol prices in check.

Signs of growth:State of the US economy
At-a-glance
But US consumers continue to buy fuel-hungry sports vehicles and pick-up trucks with large engines despite the surge in petrol prices.
Feel-good factor
Mr Kerry's main chance of unseating Mr Bush is by challenging his management of the economy.
While most voters trust Mr Bush more on foreign policy, they trust the Democrats on domestic policy.
And by 38% to 54%, they disapprove of Mr Bush's handling of the economy, according to the latest CBS/NY Times poll taken in mid March.
Seeing an opening, Mr Kerry has been arguing that the President should do more to keep oil prices down.
He has called on Opec nations to increase production, for the suspension of purchases to fill the US strategic oil reserve, and for a longer-term switch from oil to cleaner alternative technologies.
"This administration has one economic policy for America: 3 million jobs lost and driving gas prices towards $3 per gallon," Mr Kerry said in a recent stump speech.
Mr Bush has countered by accusing Mr Kerry of wanting to raise the tax on petrol, which he said would cost the average family $657 per year.

Oil cutbacks in the Middle East are affecting pricesThe issue is particularly salient in Western states like Nevada, Arizona, New Mexico, California, Oregon and Washington, where driving distances are long and refinery prices are higher than on the East Coast.
Several of these states are considered key swing states in the election.
The Bush administration does have a plan to boost domestic US oil and gas production, but it is stalled in Congress after environmentalists objected to opening up US nature reserves.
And it devoted considerable political capital, but to no avail, in trying to get Saudi Arabia to withdraw support from the OPEC plan to cut production quotas which was approved last week.
Remembering the l970s
The peculiar importance of gasoline prices for the US economy is both myth and reality.
Petrol prices, while they are at historic highs in absolute terms, are actually lower after taking inflation into account than they were in 1981, when they peaked at $3 per gallon in 2004 prices.
And Americans are still buying gas-guzzling sports utility vehicles and pick-up trucks in record numbers.
But political myth is another matter.
When petrol prices peaked, in 1980, incumbent President Jimmy Carter lost the election to Ronald Reagan, and many observers blamed the huge queues at petrol stations and the high prices caused by the 1979 oil crisis.
And the petrol queues in 1974 contributed to the demise of the unlucky presidency of Gerald Ford, appointed by Richard Nixon after he resigned, but never elected.
Ed Gillespie, Republican National Chairman, said during the 2000 election that "when gasoline prices are going up, it is not generally a good thing for the party in power."
Who does it hurt?
However, given the change of heart by the world's largest oil producer, Saudi Arabia, who now wants to cut output and boost prices, there seems to relatively little in the short-term the Bush administration can do about the issue.
And with the summer holiday season coming on, prices could spike even further.
If oil prices remain high, then it will probably be developing countries who will suffer the most economic damage.
The US itself is no longer as sensitive as it once was to oil prices, as high-tech companies and services have replaced smoke-stack manufacturing industry as the heartland of the economy.
But if petrol prices are a proxy for mismanagement of the economy, then the Bush administration might have something to worry about in November.