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Obama defends handling of Keystone pipeline

By Ken Thomas

Associated Press

Published: Thursday, March 22 2012 2:00 p.m. MDT

For Obama's advisers, rising gas prices pose a threat to his re-election bid because they could undermine the benefits of a payroll tax cut that he made the centerpiece of his jobs agenda last fall — Congress approved the tax cut extension in February — and throttle the economic recovery.

Republicans view rising gas prices as emblematic of Obama's energy record and hope to tag him with the blame even though no president has much control over prices at the pump. Gas prices have risen more than 50 cents a gallon since January in response to a standoff over Iran's nuclear program that has threatened to disrupt Middle East oil supplies.

GOP presidential hopeful Rick Santorum, campaigning at a Harvey, La., company that services oil rigs, said Obama's administration should open more federal lands for leases to boost U.S. oil production and revenue for the federal government.

"Here's an opportunity for us in this country to do something about it: increasing jobs, lowering energy prices, decreasing the deficit, all of the things you would think the president of the United States would be for," Santorum said.

Mitt Romney, Santorum's chief rival for the Republican nomination, has labeled Obama's top energy advisers the "gas hike trio," urging the president to fire three Cabinet secretaries because of the high prices.

Obama was ending the day with a stop in battleground Ohio, talking about automobile research and development at Ohio State University in Columbus. The president has cited his decision to raise fuel efficiency standards to 55 miles per gallon for new vehicles by 2025 as an important step in conserving oil and saving consumers at the gas pump.

Obama has repeatedly invoked his decision to rescue General Motors and Chrysler from collapse with billions in federal aid, a move that saved hundreds of thousands of auto assembly and supplier jobs in Ohio, Michigan and elsewhere. Romney opposed the bailout, and Obama's team intends to make it a stark contrast between the two candidates if the former Massachusetts governor wins the GOP nomination.

Associated Press writers Matthew Daly in Washington and Ramit Plushnick-Masti in Houston contributed to this report.

Follow Ken Thomas on Twitter: http://www.twitter.com/AP_Ken_Thomas

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