Obama, McCain tussle over energy

Barack Obama added more detail today to his energy policy, featuring what critics are calling flip-flops on allowing more offshore oil drilling and on going into the nation's strategic oil reserve.

In a speech today in Lansing, Mich., he outlined his New Energy for America plan, which includes giving an immediate $1,000 emergency rebate to help families pay rising fuel costs, investing $150 billion to create 5 million "green" jobs, and weaning the country off Middle Eastern oil in 10 years.

After blasting Republican John McCain for supporting lifting the federal ban on more offshore oil drilling -- which the Illinois Democrat said would not provide any relief for at least 10 years -- Obama late last week opened the door to some additional exploration as part of a compromise with congressional Republicans.

Polls show most Americans favoring more offshore drilling. "Like all compromises, this one has its drawbacks. It includes a limited amount of new offshore drilling, and while I still don't believe that's a particularly meaningful short-term or long-term solution, I am willing to consider it if it's necessary to actually pass a comprehensive plan," Obama said. "I am not interested in making the perfect the enemy of the good particularly since there is so much good in this compromise that would actually reduce our dependence on foreign oil."

Obama also proposes a “use it or lose it” approach to existing oil leases, requiring oil companies to develop the land they have -- 68 million acres that are currently going unused -- or turn it over to another company.

He is also calling for dipping into the nation's strategic petroleum reserve, then replacing the oil later when prices fall.

McCain's campaign quickly pointed out that that is also a reversal for Obama. “Tapping the strategic oil reserve is not a substitute for a real plan to increase supply through additional drilling and nuclear power. The strategic oil reserve exists for America's national security strategy – not Barack Obama’s election strategy. The last release of oil from the strategic reserve came in response to Hurricane Katrina, but the only crisis that has developed since Barack Obama last rejected this idea 28 days ago is a slide in his poll numbers,” McCain spokesman Tucker Bounds said in a statement.

Obama also wants to require that 10 percent of electricity comes from renewable sources by 2012, and 25 percent by 2025.

Obama also launched a new TV ad promoting his plan -- and attacking McCain as being "in the pocket" of Big Oil, which the spot says is making huge profits.

McCain, the ad says, collected $2 million in campaign contributions from Big Oil and now wants to give them $4 billion in tax breaks.

"After one president in the pocket of big oil, we can’t afford another," the announcer says. "Barack Obama, a windfall profits tax on big oil to give families a $1,000 rebate. A president who’ll stand up for you."

McCain's campaign is already noting that corporations can't directly donate to candidates. The Obama ad doesn't distinguish between executives and employees of oil companies, and the companies themselves.

"Barack Obama's latest negative attack ad shows his celebrity is matched only by his hypocrisy, after all it was Senator Obama, not John McCain, who voted for the Bush-Cheney energy bill that was a sweetheart deal for oil companies," McCain's campaign said. "Also not mentioned is the $400,000 from big oil contributors that Barack Obama has already pocketed in this election."

McCain also called today for Congress to reconvene to pass energy reform legislation that includes more nuclear power, clean coal, and offshore oil drilling. People and companies struggling with high energy prices "need a Congress that will act," he said.

Obama campaign spokesman Bill Burton responded, “If Senator McCain is willing to pass a compromise that provides immediate relief to consumers in the form a $1,000 energy rebate and makes a serious investment in renewable energy, Senator Obama would be happy to join him in calling on Congress to return.But if he continues to reject any compromise that takes away tax breaks for the same oil companies that have given millions to his campaign, as he did on Friday, we’d rather not waste the American people’s tax dollars.”