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1 00:00:00,734 --> 00:00:02,200 Mr. Carney: Good afternoon, everyone. 2 00:00:02,200 --> 00:00:04,166 Welcome to the White House for your daily briefing. 3 00:00:04,166 --> 00:00:06,166 It's my pleasure to see you. 4 00:00:07,600 --> 00:00:08,900 I don't have any opening statements. 5 00:00:08,900 --> 00:00:12,633 I'll just note that you should have a paper statement that I 6 00:00:12,633 --> 00:00:17,133 put out from me on the surface transportation bill, 7 00:00:17,133 --> 00:00:22,866 the need to ensure that we take -- we make sure that folks 8 00:00:22,867 --> 00:00:25,667 working on these construction jobs around the country don't 9 00:00:25,667 --> 00:00:30,200 get thrown out of work, but that we need to -- the House needs to 10 00:00:30,200 --> 00:00:31,967 do what the Senate has already done, 11 00:00:31,967 --> 00:00:39,533 which is pass a bipartisan bill for a longer-term funding of our 12 00:00:39,533 --> 00:00:41,467 infrastructure projects. 13 00:00:41,467 --> 00:00:44,934 Secondly, I would note that the Senate just voted on the 14 00:00:45,834 --> 00:00:48,567 bill that would have eliminated billions of dollars of subsidies 15 00:00:48,567 --> 00:00:50,633 to major oil and gas companies, and unfortunately, 16 00:00:50,633 --> 00:00:54,033 Senate Republicans overwhelmingly chose to 17 00:00:54,033 --> 00:00:57,633 side with oil and gas companies instead of the American people, 18 00:00:57,633 --> 00:01:02,333 who overwhelmingly support the notion that the President talked 19 00:01:02,333 --> 00:01:03,567 about this morning in the Rose Garden, 20 00:01:03,567 --> 00:01:06,166 which is that at a time of record profits, 21 00:01:06,166 --> 00:01:13,265 at a time when a company like Exxon-Mobil is pulling down -- 22 00:01:13,266 --> 00:01:17,934 was it $4.7 million an hour in profits -- that 23 00:01:17,934 --> 00:01:21,866 the American taxpayer should not be subsidizing 24 00:01:21,867 --> 00:01:22,867 oil and gas companies. 25 00:01:22,867 --> 00:01:25,967 And so that was an unfortunate vote. 26 00:01:25,967 --> 00:01:27,834 With that, I will take your questions. 27 00:01:27,834 --> 00:01:28,300 Ben. 28 00:01:28,300 --> 00:01:29,433 The Press: Thanks, Jay. Two topics. 29 00:01:29,433 --> 00:01:34,100 To follow up on that one, given the action in the Senate, 30 00:01:34,100 --> 00:01:38,232 is it fair to say now that the President made his pitch, 31 00:01:38,233 --> 00:01:40,667 Congress has acted once again on the tax subsidies, 32 00:01:40,667 --> 00:01:43,533 and he's going to move on to other elements, 33 00:01:43,533 --> 00:01:46,734 or is he going to continue to call for these even though 34 00:01:46,734 --> 00:01:48,967 Congress has already weighed in? 35 00:01:48,967 --> 00:01:51,367 Mr. Carney: Well, you can be sure he won't stop calling for this, 36 00:01:51,367 --> 00:01:55,467 because we simply cannot afford and it makes zero 37 00:01:55,467 --> 00:02:01,967 sense to have American taxpayers subsidize oil and gas companies 38 00:02:01,967 --> 00:02:04,233 that are enjoying record profits. 39 00:02:05,367 --> 00:02:09,433 Oil and gas company executives themselves have said that at a 40 00:02:09,433 --> 00:02:16,100 time of record-high profits and high prices for oil that 41 00:02:16,100 --> 00:02:18,367 they don't need the incentives that the 42 00:02:18,367 --> 00:02:20,433 subsidies were meant to create. 43 00:02:20,433 --> 00:02:24,934 We've been subsidizing oil and gas companies for a century. 44 00:02:24,934 --> 00:02:31,133 We need to invest in the energy industries of the future. 45 00:02:31,133 --> 00:02:34,166 That's part of the President's all-of-the-above approach to our 46 00:02:34,166 --> 00:02:40,233 energy challenges, and he will continue to make the case that 47 00:02:40,233 --> 00:02:41,834 we should not be subsidizing these companies. 48 00:02:41,834 --> 00:02:45,867 The taxpayers should not be, and it's not wise policy. 49 00:02:45,867 --> 00:02:48,500 The Press: But he's, at this point forward, if he hasn't already, 50 00:02:48,500 --> 00:02:51,000 he's just making a case politically to the American 51 00:02:51,000 --> 00:02:52,000 people, right? 52 00:02:52,000 --> 00:02:53,867 He's not actually trying to change Congress's mind. 53 00:02:53,867 --> 00:02:56,834 I mean, they've acted. 54 00:02:56,834 --> 00:03:00,533 Mr. Carney: Well, I mean, I think that's misunderstanding 55 00:03:00,533 --> 00:03:03,065 a bit of the question -- it represents a misunderstanding 56 00:03:03,066 --> 00:03:06,767 a little bit about how politics can work. 57 00:03:06,767 --> 00:03:10,000 What has become clear is that Senate Republicans -- 58 00:03:10,000 --> 00:03:14,266 or Republicans in general on Capitol Hill have decided to 59 00:03:14,266 --> 00:03:18,066 ally themselves with oil and gas companies over the interests of 60 00:03:18,066 --> 00:03:20,934 the American taxpayer in this case, 61 00:03:20,934 --> 00:03:23,700 despite the President's best efforts to persuade 62 00:03:23,700 --> 00:03:25,799 them otherwise. 63 00:03:25,800 --> 00:03:28,600 Those same Republicans in the House and Senate are going to 64 00:03:28,600 --> 00:03:31,066 have to answer to their own constituents. 65 00:03:31,066 --> 00:03:33,800 And you all read the polls. 66 00:03:33,800 --> 00:03:36,367 You know how the American people feel about this. 67 00:03:36,367 --> 00:03:40,333 So the President will continue to look for opportunities both 68 00:03:40,333 --> 00:03:43,567 to make his case and for any sign that Republicans have 69 00:03:43,567 --> 00:03:44,734 changed their mind. 70 00:03:44,734 --> 00:03:46,166 The Press: So he genuinely thinks there's still an opportunity 71 00:03:46,166 --> 00:03:47,799 this year to change their mind? 72 00:03:47,800 --> 00:03:50,000 Mr. Carney: I think you have to keep pressing on the issues 73 00:03:50,000 --> 00:03:51,000 like this. 74 00:03:51,000 --> 00:03:52,767 Obviously there are a number of other things, 75 00:03:52,767 --> 00:03:57,166 many other things that he'll be working on and focusing on. 76 00:03:57,166 --> 00:04:03,367 But you simply can't say that because at this point in time 77 00:04:03,367 --> 00:04:08,934 Republicans continue to side with oil and gas companies who 78 00:04:08,934 --> 00:04:14,667 are enjoying record profits, that that's okay. 79 00:04:14,667 --> 00:04:17,533 We can't afford that and we need a change. 80 00:04:17,533 --> 00:04:18,700 The Press: Just one on health care. 81 00:04:18,700 --> 00:04:21,065 I know your colleague got a lot of questions about this 82 00:04:21,065 --> 00:04:26,066 yesterday, but I'm wondering now that the arguments are done, 83 00:04:26,066 --> 00:04:29,667 can you enlighten us at all about how the President thinks 84 00:04:29,667 --> 00:04:31,166 the arguments went? 85 00:04:31,166 --> 00:04:36,734 Mr. Carney: The President is pleased with the presentation made by Don 86 00:04:36,734 --> 00:04:39,532 Verrilli, the Solicitor General, and his team. 87 00:04:39,533 --> 00:04:43,867 The President believes that the Affordable Care 88 00:04:43,867 --> 00:04:46,834 Act is constitutional. 89 00:04:46,834 --> 00:04:54,867 He agrees with the opinions of conservative judges who have 90 00:04:54,867 --> 00:04:56,867 said the same thing about the Affordable Care Act, 91 00:04:56,867 --> 00:04:57,867 that it's constitutional. 92 00:04:57,867 --> 00:05:01,133 And he focused on, and his whole administration is focused on 93 00:05:01,767 --> 00:05:04,533 implementing the important provisions of the Affordable 94 00:05:04,533 --> 00:05:10,166 Care Act that has -- that act has already provided benefits 95 00:05:10,166 --> 00:05:14,800 to 2.5 million young adult Americans who have insurance -- 96 00:05:14,800 --> 00:05:16,700 have health insurance on their parent's plan because of the 97 00:05:16,700 --> 00:05:19,900 Affordable Care Act; 5.1 million seniors with Medicare who have 98 00:05:19,900 --> 00:05:25,299 saved $3.2 billion on their prescription drugs because 99 00:05:25,300 --> 00:05:28,700 of the Affordable Care Act; 54 million Americans with private 100 00:05:28,700 --> 00:05:32,567 insurance who can now receive many preventive services without 101 00:05:32,567 --> 00:05:34,567 paying co-payments or deductibles. 102 00:05:34,567 --> 00:05:37,100 We're going to keep implementing this law. 103 00:05:37,100 --> 00:05:44,734 And the President was pleased with the presentation and 104 00:05:44,734 --> 00:05:46,532 remains convinced that the Affordable Care Act 105 00:05:46,533 --> 00:05:48,800 is constitutional. 106 00:05:48,800 --> 00:05:50,166 Yes, Reuters. 107 00:05:50,166 --> 00:05:52,600 The Press: Jay, on the oil and gas tax breaks, 108 00:05:52,600 --> 00:05:56,200 Republicans are citing a 2011 Congressional Research Service 109 00:05:56,200 --> 00:06:00,500 report that says that repealing these tax breaks might actually 110 00:06:00,500 --> 00:06:05,300 result in a small increase for consumers at the pump. 111 00:06:05,300 --> 00:06:10,233 They do say in the report that this is probably because the tax 112 00:06:10,233 --> 00:06:12,266 breaks artificially lowered the prices. 113 00:06:12,266 --> 00:06:16,333 And I was wondering what your response is to that. 114 00:06:16,333 --> 00:06:19,300 And also, what specifically would repealing these tax 115 00:06:19,300 --> 00:06:21,300 breaks do for consumers? 116 00:06:23,633 --> 00:06:24,633 Mr. Carney: Two things. 117 00:06:24,633 --> 00:06:29,332 One, last year, the ex-Shell CEO, John Hofmeister, said, 118 00:06:29,333 --> 00:06:33,700 "In the face of sustained high oil prices it was not an issue 119 00:06:33,700 --> 00:06:36,667 for large companies of needing the subsidies to entice us into 120 00:06:36,667 --> 00:06:38,667 looking for and producing more oil." 121 00:06:40,567 --> 00:06:42,567 The subsidies exist for that reason. 122 00:06:42,567 --> 00:06:47,333 There is no need to incentivize oil and gas companies to look 123 00:06:47,333 --> 00:06:52,934 for and produce oil when the incentive exists in the high 124 00:06:52,934 --> 00:06:54,100 price right now in the market. 125 00:06:54,100 --> 00:06:57,400 It's just -- it's wrong-headed policy. 126 00:06:57,400 --> 00:07:00,566 There is no reason for -- there would be no reason if we removed 127 00:07:00,567 --> 00:07:04,200 these subsidies for oil and gas companies to raise their prices, 128 00:07:04,200 --> 00:07:06,866 given the high price globally. 129 00:07:06,867 --> 00:07:08,233 That would be their choice if they had to do it. 130 00:07:08,233 --> 00:07:12,467 There would be no reason to do that. 131 00:07:12,467 --> 00:07:14,633 The American people would benefit by not having to 132 00:07:14,633 --> 00:07:17,332 subsidize these oil and gas companies. 133 00:07:17,333 --> 00:07:23,100 That money would be used to either reduce the deficit or 134 00:07:23,100 --> 00:07:25,200 invest in the kind of alternative energy sources 135 00:07:25,200 --> 00:07:28,599 that we need to develop in this country to increase our energy 136 00:07:28,600 --> 00:07:30,600 independence in the 21st century. 137 00:07:30,600 --> 00:07:32,734 I would also note that in the last three years since President 138 00:07:32,734 --> 00:07:36,933 Obama took office, we have increased domestic oil and gas 139 00:07:36,934 --> 00:07:39,867 production substantially, and we have decreased substantially our 140 00:07:39,867 --> 00:07:41,867 reliance on foreign oil. 141 00:07:41,867 --> 00:07:47,867 So the correlation between greater production and the price 142 00:07:51,433 --> 00:07:54,433 is simply not there, because as we've discussed many times, 143 00:07:54,433 --> 00:07:57,099 the price of oil is set on the global market; 144 00:07:57,100 --> 00:07:58,734 it's dependent on many factors. 145 00:07:58,734 --> 00:08:02,299 And if simply drilling more and producing more in the United 146 00:08:02,300 --> 00:08:05,467 States would reduce the price at the pump we would 147 00:08:05,467 --> 00:08:06,467 have seen that already. 148 00:08:06,467 --> 00:08:07,700 Unfortunately, it doesn't. 149 00:08:07,700 --> 00:08:10,233 So that's why you need to pursue an all-of-the-above approach 150 00:08:10,233 --> 00:08:15,600 that the President has to our energy challenges that ensures 151 00:08:15,600 --> 00:08:18,433 that we are increasing domestic oil and gas production, 152 00:08:18,433 --> 00:08:21,967 that we are investing in alternative sources of 153 00:08:21,967 --> 00:08:25,032 energy like biofuels and wind and solar, 154 00:08:25,033 --> 00:08:27,600 and that we're making wise policy decisions like the 155 00:08:27,600 --> 00:08:31,166 President made to dramatically improve the fuel efficiency 156 00:08:31,166 --> 00:08:33,232 of automobiles. 157 00:08:33,232 --> 00:08:37,467 That alone will save 12 billion barrels of oil, 158 00:08:37,467 --> 00:08:41,667 and will save American taxpayers $1.7 trillion. 159 00:08:41,667 --> 00:08:44,533 That's the only approach that makes sense for the long term, 160 00:08:44,533 --> 00:08:48,800 because in a world where emerging economies like China 161 00:08:48,800 --> 00:08:52,165 and India are growing rapidly, where millions and millions and 162 00:08:52,166 --> 00:08:56,900 millions of new cars are hitting the road in China and India, 163 00:08:56,900 --> 00:08:58,500 and therefore the demand, globally, 164 00:08:58,500 --> 00:09:02,100 for oil will just increase, we need to make smart investments 165 00:09:02,100 --> 00:09:07,033 and smart choices about the way that we can insulate ourselves 166 00:09:07,033 --> 00:09:11,000 from the kind of price shocks that we've seen almost annually 167 00:09:11,000 --> 00:09:14,600 lately in the oil global market -- in the global oil market. 168 00:09:14,600 --> 00:09:17,567 So that's why the President has the approach that he has. 169 00:09:17,567 --> 00:09:21,533 That's why he thinks that it is nonsensical to continue a policy 170 00:09:21,533 --> 00:09:24,800 of subsidizing oil and gas companies that are 171 00:09:24,800 --> 00:09:26,632 doing quite well. 172 00:09:26,633 --> 00:09:29,200 The Press: But would a repeal do anything to alleviate 173 00:09:29,200 --> 00:09:32,066 the pain at the pump now? 174 00:09:32,066 --> 00:09:35,266 Mr. Carney: I think that the President has made clear that there 175 00:09:35,266 --> 00:09:38,666 are no silver bullets here in terms of prices at the pump. 176 00:09:38,667 --> 00:09:41,734 You need a sustained, comprehensive policy 177 00:09:41,734 --> 00:09:47,667 to insulate ourselves from these kinds of fluctuations in the oil 178 00:09:47,667 --> 00:09:49,000 market in the future. 179 00:09:49,000 --> 00:09:53,567 There are options that do exist that he'll continue to examine. 180 00:09:53,567 --> 00:09:59,734 But anyone who suggests that there's a single action that 181 00:09:59,734 --> 00:10:02,567 you can take as a politician and candidate or a member of 182 00:10:02,567 --> 00:10:06,133 Congress that will suddenly reduce the price of oil, 183 00:10:06,133 --> 00:10:11,567 and therefore the price of gas at the pump, is blowing hot air. 184 00:10:11,567 --> 00:10:16,166 And I think the American people understand that. 185 00:10:16,166 --> 00:10:18,834 They've seen this before, and they've seen the empty promises 186 00:10:18,834 --> 00:10:23,032 that are made -- often in election years -- and seen 187 00:10:23,033 --> 00:10:26,934 those promises not be fulfilled. 188 00:10:26,934 --> 00:10:27,600 Let me move around. 189 00:10:27,600 --> 00:10:28,400 Cheryl. 190 00:10:28,400 --> 00:10:29,733 The Press: Thanks, Jay. 191 00:10:29,734 --> 00:10:32,367 The Senate is about to leave for a short recess, 192 00:10:32,367 --> 00:10:35,632 and there is of course a huge backlog of nominations. 193 00:10:35,633 --> 00:10:37,433 Is the President considering making 194 00:10:37,433 --> 00:10:42,200 additional recess appointments? 195 00:10:42,200 --> 00:10:47,200 Mr. Carney: We remain very concerned about the backlog of nominations. 196 00:10:47,200 --> 00:10:52,467 We've gotten to a situation where nominees that are reported 197 00:10:52,467 --> 00:10:57,400 out of committee unanimously get held up for no good 198 00:10:57,400 --> 00:10:59,000 reason at all. 199 00:10:59,000 --> 00:11:01,934 We continue to work with the Senate on this issue. 200 00:11:01,934 --> 00:11:05,967 I have no announcements to make about any presidential actions 201 00:11:05,967 --> 00:11:07,734 in that regard. 202 00:11:07,734 --> 00:11:08,400 Dan. 203 00:11:08,400 --> 00:11:09,367 The Press: Thank you. 204 00:11:09,367 --> 00:11:11,967 On health care, you and others here at the White House continue 205 00:11:11,967 --> 00:11:15,165 to insist that the law is constitutional. 206 00:11:15,166 --> 00:11:18,700 But what happens if the Court rules otherwise? 207 00:11:18,700 --> 00:11:25,400 What kind of plans are underway behind the scenes to -- in 208 00:11:25,400 --> 00:11:27,967 reaction to that possibility? 209 00:11:27,967 --> 00:11:31,699 Mr. Carney: I think, as Josh said yesterday and others have said, 210 00:11:31,700 --> 00:11:33,934 we're focused on implementing a law. 211 00:11:33,934 --> 00:11:35,400 It is the law of the land. 212 00:11:35,400 --> 00:11:38,766 It passed both the House and the Senate, 213 00:11:38,767 --> 00:11:42,967 and was signed into law by the President. 214 00:11:42,967 --> 00:11:48,266 A number of courts and a number of conservative judges on the 215 00:11:48,266 --> 00:11:52,400 Appeals Courts have ruled that the Affordable Care Act is 216 00:11:52,400 --> 00:11:54,333 constitutional, which is obviously an opinion 217 00:11:54,333 --> 00:11:56,967 that we share. 218 00:11:56,967 --> 00:11:59,633 We remain confident that the Affordable Care Act 219 00:11:59,633 --> 00:12:01,600 is constitutional. 220 00:12:01,600 --> 00:12:03,400 Now, when the Supreme Court makes a decision we'll be 221 00:12:03,400 --> 00:12:04,800 ready for that. 222 00:12:04,800 --> 00:12:07,532 But we're confident that the Affordable Care Act 223 00:12:07,533 --> 00:12:09,033 is constitutional. 224 00:12:09,033 --> 00:12:13,467 The Press: On the tax breaks for oil companies, 225 00:12:13,467 --> 00:12:15,400 you're making the argument that they 226 00:12:15,400 --> 00:12:17,266 don't need these incentives. 227 00:12:17,266 --> 00:12:19,967 But one analyst, industry analyst told us, 228 00:12:19,967 --> 00:12:22,266 "There would be less drilling. 229 00:12:22,266 --> 00:12:26,065 One of our companies said that they would drill 2,800 to 3,000 230 00:12:26,066 --> 00:12:28,800 less wells in this country." 231 00:12:28,800 --> 00:12:33,500 Why do you believe that it would not be a disincentive for them? 232 00:12:33,500 --> 00:12:34,533 Mr. Carney: Well, I think you can always find an analyst 233 00:12:34,533 --> 00:12:38,500 or somebody to say -- to make a point -- a 234 00:12:38,500 --> 00:12:41,667 political point, essentially. 235 00:12:41,667 --> 00:12:47,734 I think that I'll rely on what the former CEO of Shell said 236 00:12:47,734 --> 00:12:50,233 just last year: "In the face of sustained high oil prices, 237 00:12:50,233 --> 00:12:52,867 it was not an issue for large companies of needing the 238 00:12:52,867 --> 00:12:54,699 subsidies to entice us into looking for 239 00:12:54,700 --> 00:12:56,200 and producing more oil." 240 00:12:56,200 --> 00:13:01,266 I mean, what more enticement do you need than the price 241 00:13:01,266 --> 00:13:05,400 of oil that pertains today? 242 00:13:05,400 --> 00:13:07,967 What more enticement do you need than the record profits you're 243 00:13:07,967 --> 00:13:09,699 making today? 244 00:13:09,700 --> 00:13:12,934 The suggestion that you seem to be making, 245 00:13:12,934 --> 00:13:15,199 or at least the person you're quoting seems to be making, 246 00:13:15,200 --> 00:13:16,834 is that those profits depend on the subsidies 247 00:13:16,834 --> 00:13:18,233 of the American taxpayer. 248 00:13:18,233 --> 00:13:22,599 Well, I think every analyst would disagree with that notion. 249 00:13:22,600 --> 00:13:29,900 So any effect -- upward effect on prices that ending these 250 00:13:29,900 --> 00:13:32,567 subsidies might have would be a matter of 251 00:13:32,567 --> 00:13:34,533 choice by oil companies. 252 00:13:34,533 --> 00:13:37,667 And I think that that decision, if it were made, 253 00:13:37,667 --> 00:13:40,834 would not be met with applause by any means 254 00:13:40,834 --> 00:13:42,834 by the American consumers. 255 00:13:42,834 --> 00:13:43,433 The Press: A follow-on? 256 00:13:43,433 --> 00:13:44,100 Mr. Carney: Sure. 257 00:13:44,100 --> 00:13:45,066 The Press: Thank you. 258 00:13:45,066 --> 00:13:46,066 Mr. Carney: Dan, were you done? Sorry. 259 00:13:46,066 --> 00:13:46,734 The Press: Yes. 260 00:13:46,734 --> 00:13:47,433 Mr. Carney: Okay, Ann. 261 00:13:47,433 --> 00:13:49,967 The Press: The Republican leaders do say that they would 262 00:13:49,967 --> 00:13:53,500 consider some kind of changes in these subsidies as part of 263 00:13:53,500 --> 00:13:57,033 a broader change -- closing loopholes and really looking 264 00:13:57,033 --> 00:13:57,834 at the tax code. 265 00:13:57,834 --> 00:14:02,400 For 2012, is the idea of broader tax reform dead? 266 00:14:02,400 --> 00:14:04,667 Mr. Carney: Well, look, that's a -- the President has 267 00:14:04,667 --> 00:14:08,066 put forward his broad budget proposals. 268 00:14:08,066 --> 00:14:12,533 We would welcome a decision by Republicans in the leadership to 269 00:14:12,533 --> 00:14:16,967 take up a balanced approach to our long-term deficit and debt 270 00:14:16,967 --> 00:14:21,800 challenges, a balanced approach to our budget issues that would 271 00:14:21,800 --> 00:14:26,099 include, as the President has called for, tax reform. 272 00:14:26,100 --> 00:14:29,033 But it would have to include tax reform that made sure that 273 00:14:29,033 --> 00:14:35,100 we ask the wealthiest Americans to bear some of the burden of 274 00:14:35,100 --> 00:14:37,567 getting our deficits and debt under control, 275 00:14:37,567 --> 00:14:44,000 rather than the Ryan Republican budget plan -- new and not 276 00:14:44,000 --> 00:14:46,900 improved -- that is likely to pass the House again with 277 00:14:46,900 --> 00:14:50,733 overwhelming Republican support. 278 00:14:50,734 --> 00:14:59,467 And that plan, remarkably, in the face of what is obviously 279 00:14:59,467 --> 00:15:01,500 the sentiment of the American people, 280 00:15:01,500 --> 00:15:04,500 says that the answer we need today to our budget challenges 281 00:15:04,500 --> 00:15:08,800 is to give more tax breaks to millionaires and billionaires, 282 00:15:08,800 --> 00:15:14,867 folks who have enjoyed quite a bit out of our tax code in 283 00:15:14,867 --> 00:15:18,632 recent years, and ends welfare as we know it, 284 00:15:18,633 --> 00:15:23,867 asks seniors to pay more, dramatically cuts education, 285 00:15:23,867 --> 00:15:27,233 research and development, and other programs that are 286 00:15:27,233 --> 00:15:34,300 essential, and holds harmless -- not only holds harmless 287 00:15:34,300 --> 00:15:36,032 millionaires and billionaires, but says, 288 00:15:36,033 --> 00:15:39,533 here's another $150,000 per year, annually. 289 00:15:39,533 --> 00:15:41,934 That's not a solution that I think the American people want. 290 00:15:41,934 --> 00:15:43,100 The Press: Speaker Boehner has -- 291 00:15:43,100 --> 00:15:44,633 The Press: Jay, you said welfare as we know it. 292 00:15:44,633 --> 00:15:45,834 Mr. Carney: I'm sorry, thank you for correcting me. 293 00:15:45,834 --> 00:15:48,532 I was sitting in that chair when we ended welfare as we know it, 294 00:15:48,533 --> 00:15:50,467 that Knoller occupies. 295 00:15:50,467 --> 00:15:52,934 Ends Medicare as we know it. 296 00:15:52,934 --> 00:15:53,834 Let's be clear. 297 00:15:53,834 --> 00:16:02,132 The new Ryan Republican budget creates a segmented replacement 298 00:16:02,133 --> 00:16:06,767 for Medicare that would burden seniors and end the program as 299 00:16:06,767 --> 00:16:07,934 we know it. 300 00:16:07,934 --> 00:16:09,834 The Press: Speaker Boehner has written a letter to the President I think 301 00:16:09,834 --> 00:16:12,599 about his comments to President Medvedev. 302 00:16:12,600 --> 00:16:14,367 Has the President responded to that, 303 00:16:14,367 --> 00:16:17,867 or could you respond to that? 304 00:16:17,867 --> 00:16:21,467 Mr. Carney: I don't have anything on the President responding to it. 305 00:16:21,467 --> 00:16:23,467 Why don't you -- if you want to ask me about it. 306 00:16:23,467 --> 00:16:27,333 The Press: The Speaker expressed concern that the President wanted space, 307 00:16:27,333 --> 00:16:29,900 wanted to be flexible on missile defense. 308 00:16:29,900 --> 00:16:32,199 Is the President going to get passed the election year and 309 00:16:32,200 --> 00:16:35,066 then feel he can change position on this? 310 00:16:35,066 --> 00:16:37,000 Mr. Carney: The President addressed this quite clearly, as you know, 311 00:16:37,000 --> 00:16:41,767 in South Korea, in Seoul. 312 00:16:41,767 --> 00:16:44,734 What he said to President Medvedev is what he has said 313 00:16:44,734 --> 00:16:47,266 publicly, and said again when he addressed this, 314 00:16:47,266 --> 00:16:51,165 which is it is a reality that this is an election year, 315 00:16:51,166 --> 00:16:54,600 both in Russia and in the United States, 316 00:16:54,600 --> 00:16:58,266 and that the kind of painstaking work that requires -- that is 317 00:16:58,266 --> 00:17:04,367 required when you are dealing with negotiations over nuclear 318 00:17:04,367 --> 00:17:07,466 weapons levels, as we saw with the New START Treaty, 319 00:17:07,467 --> 00:17:09,533 takes a sustained engagement with Congress. 320 00:17:09,532 --> 00:17:12,766 And it absolutely requires bipartisan effort. 321 00:17:12,767 --> 00:17:15,767 That's what we saw when the President was able to work 322 00:17:15,767 --> 00:17:19,633 with the Senate to achieve ratification of the New START 323 00:17:19,633 --> 00:17:22,200 Treaty at the end of 2010. 324 00:17:22,200 --> 00:17:26,066 And that would certainly be required for any efforts to 325 00:17:26,066 --> 00:17:29,934 further address this issue in the years forward. 326 00:17:29,934 --> 00:17:34,399 On missile defense, let's be clear, as the President has. 327 00:17:34,400 --> 00:17:38,166 We are building a missile defense system in Eastern Europe 328 00:17:38,166 --> 00:17:41,233 with our allies that is aimed at protecting the United States and 329 00:17:41,233 --> 00:17:46,033 our allies in Europe from rogue nations like Iran. 330 00:17:46,033 --> 00:17:47,433 It is not directed at Russia. 331 00:17:47,433 --> 00:17:50,066 That is a point that we have made to the Russians. 332 00:17:50,066 --> 00:17:53,600 They have not been persuaded, but we will work with them and 333 00:17:53,600 --> 00:17:56,833 continue to have discussions with them to demonstrate that. 334 00:17:56,834 --> 00:17:59,633 And as President Medvedev said and President Obama said, 335 00:17:59,633 --> 00:18:04,567 we should not step away from those consultations simply 336 00:18:04,567 --> 00:18:05,834 because there's disagreement on this issue. 337 00:18:05,834 --> 00:18:08,667 There's an opportunity this year to have this discussed 338 00:18:08,667 --> 00:18:09,600 at a technical level. 339 00:18:09,600 --> 00:18:11,632 This is highly complex stuff, as you know, Ann. 340 00:18:11,633 --> 00:18:15,000 You've been covering these issues for a long time. 341 00:18:15,000 --> 00:18:16,300 So those conversations will continue. 342 00:18:16,300 --> 00:18:19,667 That's what President Obama was referring to. 343 00:18:19,667 --> 00:18:20,533 Bill. 344 00:18:20,533 --> 00:18:23,500 The Press: Is there any evidence that anything the President wants 345 00:18:23,500 --> 00:18:26,667 to do or is trying to do, whether it's drilling in 346 00:18:26,667 --> 00:18:30,667 the Atlantic or the failed attempt to get the repeal of 347 00:18:30,667 --> 00:18:36,265 the subsidies, would actually lower gas prices? 348 00:18:36,266 --> 00:18:37,533 Mr. Carney: I think we've addressed this many times, 349 00:18:37,533 --> 00:18:39,300 and that is, there is no silver bullet, 350 00:18:39,300 --> 00:18:42,567 there's not a magic wand that is in a box somewhere in the Oval 351 00:18:42,567 --> 00:18:47,433 Office, or in a campaign van out on the trail, 352 00:18:47,433 --> 00:18:51,867 that somehow allows you to reduce the price at the pump. 353 00:18:51,867 --> 00:18:53,899 It's a global oil market. 354 00:18:53,900 --> 00:18:57,000 There are things that we can potentially do. 355 00:18:57,000 --> 00:18:59,433 The President is constantly asking for and reviewing those 356 00:18:59,433 --> 00:19:02,400 options, and we've taken no option off the table. 357 00:19:02,400 --> 00:19:09,400 But he has been extremely candid and honest with the American 358 00:19:09,400 --> 00:19:16,400 people about the challenge that high prices present to them and 359 00:19:16,400 --> 00:19:17,367 present to the country. 360 00:19:17,367 --> 00:19:22,000 He is keenly aware of the burden that it's placing on -- these 361 00:19:22,000 --> 00:19:23,767 prices are placing on American families. 362 00:19:23,767 --> 00:19:28,667 And he will continue to work not only on the short term but on 363 00:19:28,667 --> 00:19:31,199 the long term in terms of our energy policy. 364 00:19:31,200 --> 00:19:31,633 But any -- 365 00:19:31,633 --> 00:19:34,333 The Press: So does that only an election year show? 366 00:19:34,333 --> 00:19:35,467 Mr. Carney: No, just the opposite. 367 00:19:35,467 --> 00:19:37,800 It is the -- an election year show is to go out and promise 368 00:19:37,800 --> 00:19:42,233 that if only you are elected or only your plan was passed, 369 00:19:42,233 --> 00:19:45,000 that suddenly the price of gas would drop, 370 00:19:45,000 --> 00:19:47,233 which is malarkey -- and you know it, I know it, 371 00:19:47,233 --> 00:19:48,133 everybody in this rooms knows it. 372 00:19:48,133 --> 00:19:52,667 Everybody who utters those words knows it. 373 00:19:52,667 --> 00:19:57,600 What is the unpolitical approach is to level with the American 374 00:19:57,600 --> 00:20:00,800 people about our long-term energy challenges and why we 375 00:20:00,800 --> 00:20:04,767 need to take an all-of-the-above approach to dealing with them -- 376 00:20:04,767 --> 00:20:09,633 why we need to not just invest in alternative energies, 377 00:20:09,633 --> 00:20:14,433 which we absolutely must do, but we also have to license 378 00:20:14,433 --> 00:20:17,233 the first -- the construction of the first nuclear power plant in 379 00:20:17,233 --> 00:20:18,166 this country in 30 years. 380 00:20:18,166 --> 00:20:24,966 It's why we have to continue to open up spaces for oil and gas 381 00:20:24,967 --> 00:20:26,467 exploration domestically. 382 00:20:26,467 --> 00:20:27,400 We have to do it all. 383 00:20:27,400 --> 00:20:31,266 And we have to do it in a way that's responsible and safe, 384 00:20:31,266 --> 00:20:33,367 and that continues to enhance the energy 385 00:20:33,367 --> 00:20:35,899 security of this country. 386 00:20:35,900 --> 00:20:36,500 Ed Henry. 387 00:20:36,500 --> 00:20:39,633 The Press: Jay, on the tax breaks, in the context of the Ryan Budget, 388 00:20:39,633 --> 00:20:41,600 where you're saying everyone needs to pay their fair share, 389 00:20:41,600 --> 00:20:43,766 the oil industry says they make a lot of money obviously, 390 00:20:43,767 --> 00:20:46,133 as you pointed out, and they pay an effective tax 391 00:20:46,133 --> 00:20:47,867 rate of about 41%. 392 00:20:47,867 --> 00:20:50,033 We've all read the stories about some American companies that pay 393 00:20:50,033 --> 00:20:52,367 no taxes, or pay 10, 20 percent. 394 00:20:52,367 --> 00:20:54,166 They pay 41 percent, they claim. 395 00:20:54,166 --> 00:20:57,399 So what's wrong with companies making big money but then paying 396 00:20:57,400 --> 00:20:59,200 their share, as the President says? 397 00:20:59,200 --> 00:21:00,900 Mr. Carney: Well, again this is -- first of all, 398 00:21:00,900 --> 00:21:03,867 I haven't analyzed their tax returns and I don't anticipate 399 00:21:03,867 --> 00:21:05,533 that I will. 400 00:21:05,533 --> 00:21:08,734 This is not an issue of -- I can barely handle mine -- 401 00:21:08,734 --> 00:21:10,734 The Press: But you're calling for a fair share -- 402 00:21:10,734 --> 00:21:15,000 Mr. Carney: But they're also -- regardless of what their effective tax rate 403 00:21:15,000 --> 00:21:18,567 is -- and I don't know and I think it probably varies per 404 00:21:18,567 --> 00:21:23,033 company -- they are being subsidized at 405 00:21:23,033 --> 00:21:26,399 a substantial rate by you and me and every American 406 00:21:26,400 --> 00:21:29,433 who pays taxes. 407 00:21:29,433 --> 00:21:35,200 And there was a time when that made sense. 408 00:21:35,200 --> 00:21:38,667 It does not make sense anymore, with our budget challenges and 409 00:21:38,667 --> 00:21:42,867 at a time when these same companies are making huge 410 00:21:42,867 --> 00:21:48,233 profits -- huge profits; at a time when there is every 411 00:21:48,233 --> 00:21:55,867 incentive in the world to drill and explore, 412 00:21:55,867 --> 00:22:00,100 to invest in the -- upfront in doing that, 413 00:22:00,100 --> 00:22:06,132 which obviously requires investment by these companies 414 00:22:06,133 --> 00:22:06,867 and cost. 415 00:22:09,367 --> 00:22:11,367 The price is high; it's worth it; they can do it. 416 00:22:11,367 --> 00:22:15,433 They certainly don't need the American taxpayers' dollars to 417 00:22:15,433 --> 00:22:19,500 find the incentive to further explore and develop domestic 418 00:22:19,500 --> 00:22:20,900 energy or international energy. 419 00:22:20,900 --> 00:22:22,867 So that's the argument the President is making, 420 00:22:22,867 --> 00:22:25,066 not -- it has not nothing to do with whether they're paying 421 00:22:25,066 --> 00:22:26,066 their taxes or not. 422 00:22:26,066 --> 00:22:29,100 What they don't need is the taxes of you and me and every 423 00:22:29,100 --> 00:22:31,966 other American for the incentive they need to 424 00:22:31,967 --> 00:22:33,133 continue to do business. 425 00:22:33,133 --> 00:22:34,433 The Press: So if it's non-sensible, and you said earlier, 426 00:22:34,433 --> 00:22:37,767 why did the President vote for the energy bill in 2005 as a 427 00:22:37,767 --> 00:22:40,633 senator if it had over $2 billion in tax breaks for 428 00:22:40,633 --> 00:22:41,433 the oil industry? 429 00:22:41,433 --> 00:22:42,667 They were making a lot of money then, too. 430 00:22:42,667 --> 00:22:48,367 Mr. Carney: Well, what I can tell you, Ed, is that the oil and gas 431 00:22:48,367 --> 00:22:54,399 companies in this country are making record profits now in 2012. 432 00:22:54,400 --> 00:22:56,967 The price at the pump is very high, 433 00:22:56,967 --> 00:23:01,200 and that is plenty of incentive for these companies to continue 434 00:23:01,200 --> 00:23:04,800 to drill, to continue to explore, 435 00:23:04,800 --> 00:23:09,667 and continue to develop energy sources here in the United 436 00:23:09,667 --> 00:23:11,567 States and abroad. 437 00:23:11,567 --> 00:23:15,200 There is no reason for the American taxpayer to subsidize 438 00:23:15,200 --> 00:23:16,200 that activity. 439 00:23:16,200 --> 00:23:17,567 The Press: So why did he vote for them? 440 00:23:17,567 --> 00:23:20,033 Mr. Carney: Look, I haven't examined the vote or what the prices were 441 00:23:20,033 --> 00:23:22,800 at the time or the whole bill that it was attached to. 442 00:23:22,800 --> 00:23:27,367 What I know and what the President knows is that this 443 00:23:27,367 --> 00:23:31,399 year, in 2012, when we are seeing high prices at the pump, 444 00:23:31,400 --> 00:23:34,233 high prices on the international oil market, 445 00:23:34,233 --> 00:23:37,466 and record profits from the oil and gas companies, 446 00:23:37,467 --> 00:23:39,867 there is no reason to continue these kinds of subsidies. 447 00:23:39,867 --> 00:23:42,867 It's just -- take that argument out to the people. 448 00:23:42,867 --> 00:23:45,166 I don't think they'll go along with it. 449 00:23:45,166 --> 00:23:45,700 Margaret. 450 00:23:46,400 --> 00:23:49,000 The Press: Thanks. Can you help us to understand what, if anything, 451 00:23:49,000 --> 00:23:52,200 the President needs to do tomorrow or between now and 452 00:23:52,200 --> 00:23:55,834 the weekend as related to the Iranian oil sanctions taking 453 00:23:55,834 --> 00:23:57,633 effect on June 28? 454 00:23:57,633 --> 00:24:00,100 I'm trying to understand the issue myself. 455 00:24:00,100 --> 00:24:04,300 It sounds like the question is whether he thinks there is a -- 456 00:24:04,300 --> 00:24:06,600 whether there's enough non-Iranian oil available 457 00:24:06,600 --> 00:24:08,867 to go forward with those sanctions, and if he doesn't, 458 00:24:08,867 --> 00:24:10,934 that he needs to do some intermediate steps by an 459 00:24:10,934 --> 00:24:12,399 April 1 deadline. 460 00:24:12,400 --> 00:24:14,300 Can you tell us, is he preparing to do something? 461 00:24:14,300 --> 00:24:16,066 And what can you tell us about that process? 462 00:24:16,066 --> 00:24:18,066 Mr. Carney: I can only tell you that there is a deadline related to the 463 00:24:18,066 --> 00:24:20,600 legislation, and obviously we're mindful of that. 464 00:24:20,600 --> 00:24:22,567 But I have no updates for you on it. 465 00:24:22,567 --> 00:24:25,633 The Press: Can we get the updates in like a 5 o'clock deadline -- 466 00:24:25,633 --> 00:24:27,633 Mr. Carney: Well, I think that we'll -- we're prepared 467 00:24:27,633 --> 00:24:28,467 to meet the deadline. 468 00:24:28,467 --> 00:24:31,734 The Press: Okay, but nothing that you will discuss between now and then? 469 00:24:31,734 --> 00:24:32,567 Mr. Carney: I don't have anything for you on it. 470 00:24:32,567 --> 00:24:33,033 The Press: Okay. 471 00:24:33,033 --> 00:24:36,065 And can you tell us a little bit more about the trips tomorrow? 472 00:24:36,066 --> 00:24:37,367 Are they purely fundraising trips? 473 00:24:37,367 --> 00:24:39,233 Is there any public element to them? 474 00:24:39,233 --> 00:24:41,466 And why is -- what's the statement that he's trying 475 00:24:41,467 --> 00:24:43,900 to make in going to Vermont and Maine? 476 00:24:43,900 --> 00:24:46,500 Mr. Carney: I believe those are campaign events -- is that right? 477 00:24:46,500 --> 00:24:48,467 I think those are campaign events. 478 00:24:48,467 --> 00:24:49,734 The Press: No public component? 479 00:24:49,734 --> 00:24:51,066 Mr. Carney: No official events. 480 00:24:51,066 --> 00:24:52,133 Just campaign events. 481 00:24:52,133 --> 00:24:53,300 Yes, Kristen. 482 00:24:53,300 --> 00:24:54,033 The Press: Thanks, Jay. 483 00:24:54,033 --> 00:24:57,667 Officials in France are, today, saying that an actual deal is 484 00:24:57,667 --> 00:25:02,367 near to tap the SPR between the United States and other allies. 485 00:25:02,367 --> 00:25:04,265 Can you confirm that that's the case, 486 00:25:04,266 --> 00:25:06,200 that a deal is actually near? 487 00:25:06,200 --> 00:25:08,133 Mr. Carney: I cannot confirm that. 488 00:25:08,133 --> 00:25:10,333 And I will say, as we have said repeatedly, 489 00:25:10,333 --> 00:25:16,200 that this option is on the table, it remains on the table, 490 00:25:16,200 --> 00:25:18,533 but no decisions have been made and no specific actions 491 00:25:18,533 --> 00:25:19,934 have been proposed. 492 00:25:19,934 --> 00:25:24,033 We obviously consult, as we have said repeatedly both this year 493 00:25:24,033 --> 00:25:27,734 and last, with our partners around the world and with 494 00:25:27,734 --> 00:25:29,667 energy-producing states. 495 00:25:29,667 --> 00:25:32,632 But again, there are no decisions that have been made, 496 00:25:32,633 --> 00:25:35,200 and no specific actions proposed. 497 00:25:35,200 --> 00:25:37,633 The Press: Well, can you say if you're currently consulting with those 498 00:25:37,633 --> 00:25:39,100 other countries? 499 00:25:39,100 --> 00:25:41,100 Mr. Carney: By currently you mean at this minute, 500 00:25:41,100 --> 00:25:41,800 in this hour? 501 00:25:41,800 --> 00:25:47,800 We have conversations with various countries all the time. 502 00:25:47,800 --> 00:25:51,066 I can't possibly monitor them all, 503 00:25:51,066 --> 00:25:56,166 so I don't know if that's the case at this hour of this day. 504 00:25:56,166 --> 00:25:59,233 The Press: Given that gas prices are approaching $4 a gallon, 505 00:25:59,233 --> 00:26:01,600 isn't it important to update the American people 506 00:26:01,600 --> 00:26:05,433 on this component? 507 00:26:05,433 --> 00:26:07,734 Mr. Carney: As I just said, and the President has said, 508 00:26:07,734 --> 00:26:14,934 this is -- regarding the reserves and the SPR, 509 00:26:14,934 --> 00:26:16,899 this is an option that remains on the table. 510 00:26:16,900 --> 00:26:19,567 A variety of other options remain on the table, 511 00:26:19,567 --> 00:26:22,133 something that the President looks at. 512 00:26:22,133 --> 00:26:27,667 And I really don't have any other update on it for you. 513 00:26:27,667 --> 00:26:31,000 The Press: On Syria, Jay, President Bashar al-Assad has said 514 00:26:31,000 --> 00:26:34,533 that he is going to work to make the mission of the 515 00:26:34,533 --> 00:26:36,199 U.N.-Arab League a success. 516 00:26:36,200 --> 00:26:37,100 Do you believe him? 517 00:26:40,734 --> 00:26:45,399 Mr. Carney: Our approach to this is to look at the actions of 518 00:26:45,400 --> 00:26:50,767 the Assad regime, not the rhetoric, not the words. 519 00:26:50,767 --> 00:26:52,333 It is a welcome development, certainly, 520 00:26:52,333 --> 00:27:00,300 the indication that Assad supports the Annan mission, 521 00:27:00,300 --> 00:27:02,433 but it is meaningless unless they act on it. 522 00:27:02,433 --> 00:27:04,633 It is meaningless unless there is a cessation of violence. 523 00:27:04,633 --> 00:27:08,300 It is meaningless unless all of the provisions that are required 524 00:27:08,300 --> 00:27:10,033 here are followed. 525 00:27:10,033 --> 00:27:15,399 We've seen a lot of empty rhetoric from Assad and his 526 00:27:15,400 --> 00:27:21,433 government in the past, a lot of promises that were never 527 00:27:21,433 --> 00:27:23,767 fulfilled and never meant to be fulfilled. 528 00:27:23,767 --> 00:27:31,433 So actions are what matter here, not words. 529 00:27:31,433 --> 00:27:32,400 April. 530 00:27:32,400 --> 00:27:35,533 The Press: Jay, I'm going to ask you a question about the Sudan, 531 00:27:35,533 --> 00:27:38,300 particularly after -- weeks after George Clooney met with 532 00:27:38,300 --> 00:27:40,166 President Obama on the Sudan. 533 00:27:40,166 --> 00:27:43,466 Andrew Natsios, the former Special Envoy to the Sudan, 534 00:27:43,467 --> 00:27:47,066 has written a book and he's also talking about there needs to be 535 00:27:47,066 --> 00:27:50,734 more pressure on the Sudan, world community pressure. 536 00:27:50,734 --> 00:27:53,100 He says this is the window to strike, 537 00:27:53,100 --> 00:27:56,033 particularly as the military is getting weaker in the Sudan, 538 00:27:56,033 --> 00:27:59,367 and he says that it doesn't necessarily need to be boots 539 00:27:59,367 --> 00:28:02,367 on the ground there, but the strike should be strikes on 540 00:28:02,367 --> 00:28:04,466 their import. 541 00:28:04,467 --> 00:28:05,700 What do you say about that? 542 00:28:05,700 --> 00:28:08,900 Mr. Carney: Well, I'm not aware of the book or those recommendations. 543 00:28:08,900 --> 00:28:13,867 And I'm certainly not aware of any decision along those lines 544 00:28:13,867 --> 00:28:16,399 that's under consideration. 545 00:28:16,400 --> 00:28:20,600 This is an issue that's of importance to the President; 546 00:28:20,600 --> 00:28:23,000 it's an issue that's of importance to the 547 00:28:23,000 --> 00:28:28,400 administration and we continue to work hard on it. 548 00:28:28,400 --> 00:28:31,100 But again, it's hard for me to respond to that not 549 00:28:31,100 --> 00:28:32,567 having seen it. 550 00:28:32,567 --> 00:28:34,533 I know that's not our policy right now. 551 00:28:34,533 --> 00:28:37,667 The Press: And also, what are the conversations right now, 552 00:28:37,667 --> 00:28:40,867 the precursor conversations to the bigger conversation with 553 00:28:40,867 --> 00:28:44,667 this President and Chinese leaders about putting pressure 554 00:28:44,667 --> 00:28:48,734 on the Sudan, particularly when it comes to their oil? 555 00:28:48,734 --> 00:28:54,199 Mr. Carney: Well, the situation in the Sudan is definitely a problem and one 556 00:28:54,200 --> 00:28:57,934 of the contributing factors to the escalating price of 557 00:28:57,934 --> 00:29:00,367 oil globally. 558 00:29:00,367 --> 00:29:02,567 I would refer you to the State Department for more details 559 00:29:02,567 --> 00:29:07,467 about conversations we're having with other countries. 560 00:29:07,467 --> 00:29:12,233 But we're obviously interested in reducing tensions there, 561 00:29:12,233 --> 00:29:16,899 and certainly in trying to mitigate the factors that 562 00:29:16,900 --> 00:29:20,133 are having an impact on high oil prices. 563 00:29:20,133 --> 00:29:23,367 The Press: How much would you say that the tensions in the 564 00:29:23,367 --> 00:29:25,700 Sudan are causing on our oil prices? 565 00:29:25,700 --> 00:29:26,700 How much of a percentage? 566 00:29:26,700 --> 00:29:31,100 Mr. Carney: You know, I haven't -- I would not hazard a guess 567 00:29:31,100 --> 00:29:32,132 because I just don't know. 568 00:29:32,133 --> 00:29:34,367 I'm sure there are oil market analysts who can 569 00:29:34,367 --> 00:29:35,533 give that to you. 570 00:29:35,533 --> 00:29:40,833 I've certainly seen some suggestion that the kind of 571 00:29:40,834 --> 00:29:44,266 uncertainty created globally in various areas -- the Middle 572 00:29:44,266 --> 00:29:47,467 East, principally, but also Sudan and other places -- have 573 00:29:47,467 --> 00:29:51,533 contributed significantly to the current rise in prices. 574 00:29:51,533 --> 00:29:55,632 But more sophisticated analysts than I will have 575 00:29:55,633 --> 00:29:58,166 that information for you. 576 00:29:58,166 --> 00:29:59,332 Jon Christopher. 577 00:29:59,333 --> 00:30:01,166 The Press: Jay, has the President expressed his thoughts 578 00:30:01,166 --> 00:30:05,332 or his feelings regarding the very strong statement made 579 00:30:05,333 --> 00:30:09,400 yesterday by Chicago Congressman Bobby Rush on the House floor? 580 00:30:09,400 --> 00:30:10,600 Mr. Carney: I haven't discussed that with him. 581 00:30:10,600 --> 00:30:17,567 I mean, the President made some comments about that case last 582 00:30:17,567 --> 00:30:22,166 week, and I haven't had that conversation with him. 583 00:30:22,166 --> 00:30:22,934 Alexis. 584 00:30:22,934 --> 00:30:25,867 The Press: Jay, what does the President believe motivated the senators 585 00:30:25,867 --> 00:30:27,633 who voted against cloture? 586 00:30:27,633 --> 00:30:30,900 Because some senators suggested that their motivation was the 587 00:30:30,900 --> 00:30:33,233 amount of money that goes into their campaign coffers. 588 00:30:33,233 --> 00:30:34,700 Does the President agree? 589 00:30:34,700 --> 00:30:38,300 Mr. Carney: I'm not going to address motivations. 590 00:30:38,300 --> 00:30:47,767 We simply believe they're wrong; that the right choice here is to 591 00:30:47,767 --> 00:30:52,100 support the American taxpayer, to acknowledge and recognize 592 00:30:52,100 --> 00:30:56,265 that while these subsidies may have been appropriate in 593 00:30:56,266 --> 00:30:58,200 a different time, they're not appropriate now. 594 00:30:58,200 --> 00:30:58,934 We can't afford them. 595 00:30:58,934 --> 00:31:01,300 They're not necessary. 596 00:31:01,300 --> 00:31:04,834 Oil companies have all the incentive in the world without 597 00:31:04,834 --> 00:31:10,567 these subsidies to continue to drill and explore, 598 00:31:10,567 --> 00:31:12,700 and that we need to end these subsidies, 599 00:31:12,700 --> 00:31:16,467 because we can't afford them, and the American taxpayer can't 600 00:31:16,467 --> 00:31:17,100 afford them. 601 00:31:17,100 --> 00:31:23,265 And we need to make the appropriate investments in 602 00:31:23,266 --> 00:31:24,133 alternative energies. 603 00:31:24,133 --> 00:31:33,300 I mean, what is perplexing is a resistance by those who voted 604 00:31:33,300 --> 00:31:36,332 against ending these subsidies to investing in the energy 605 00:31:36,333 --> 00:31:39,000 technologies of the future, the energy technologies that 606 00:31:39,000 --> 00:31:41,900 everybody recognizes who examines this market and 607 00:31:41,900 --> 00:31:44,500 examines what's happening globally, 608 00:31:44,500 --> 00:31:47,834 everyone recognizes that we have to have -- that these will be 609 00:31:47,834 --> 00:31:52,467 the markets of the future, that alternative energies will be a 610 00:31:52,467 --> 00:31:56,667 major factor in the global economy in the 21st century. 611 00:31:56,667 --> 00:32:01,233 So there's a great resistance to investing in that sector of the 612 00:32:01,233 --> 00:32:05,899 energy economy and insistence on investing in the past, 613 00:32:05,900 --> 00:32:08,467 at a time when we don't need to, when oil and gas companies are 614 00:32:08,467 --> 00:32:12,567 doing very well on their own without help from the 615 00:32:12,567 --> 00:32:13,567 American taxpayer. 616 00:32:13,567 --> 00:32:15,467 The Press: Is it possible that that resistance is 617 00:32:15,467 --> 00:32:18,400 motivated by the influence of the industry itself? 618 00:32:18,400 --> 00:32:24,767 Mr. Carney: I'm not -- you'd have to ask individual senators. 619 00:32:24,767 --> 00:32:25,934 I don't know. 620 00:32:29,467 --> 00:32:30,500 Who's next? 621 00:32:30,500 --> 00:32:31,467 The Press: Me. 622 00:32:31,467 --> 00:32:33,266 Mr. Carney: Okay. Mike. 623 00:32:33,266 --> 00:32:33,900 The Press: You asked. 624 00:32:33,900 --> 00:32:35,400 (laughter) 625 00:32:35,400 --> 00:32:36,000 Thank you. 626 00:32:36,000 --> 00:32:36,767 Going back to oil -- 627 00:32:36,767 --> 00:32:38,667 (laughter) 628 00:32:38,667 --> 00:32:40,632 I'm shameless, I'm sorry. 629 00:32:40,633 --> 00:32:42,367 Big oil isn't what it used to be. 630 00:32:42,367 --> 00:32:45,533 It was announced today that Exxon Mobil has been replaced 631 00:32:45,533 --> 00:32:49,399 as the largest publicly traded producer of oil by a Chinese 632 00:32:49,400 --> 00:32:51,400 company in China. 633 00:32:51,400 --> 00:32:53,533 And I wanted to see the administration's 634 00:32:53,533 --> 00:32:54,533 reaction to that. 635 00:32:54,533 --> 00:32:57,300 Is there any concern -- as China aggressively tries to lock up 636 00:32:57,300 --> 00:33:01,300 fossil fuel resources in places like Canada, Iraq, 637 00:33:01,300 --> 00:33:03,966 the Caribbean Basin, is there any concern that the United 638 00:33:03,967 --> 00:33:06,166 States may end up on the short end of the dipstick? 639 00:33:06,166 --> 00:33:09,100 (laughter) 640 00:33:09,100 --> 00:33:10,533 Mr. Carney: Sounds like a radio piece in the making. 641 00:33:10,533 --> 00:33:15,433 (laughter) 642 00:33:15,433 --> 00:33:17,033 I don't have a specific reaction to this. 643 00:33:17,033 --> 00:33:18,100 It is a global market. 644 00:33:18,100 --> 00:33:22,833 There are obviously -- because of the attraction that the high 645 00:33:22,834 --> 00:33:27,800 price creates, I'm sure a lot of companies are eagerly 646 00:33:27,800 --> 00:33:29,934 participating in the market. 647 00:33:29,934 --> 00:33:32,033 That's another reason why we don't need to subsidize it, 648 00:33:32,033 --> 00:33:36,332 why you do not need to contribute some of your 649 00:33:36,333 --> 00:33:39,233 tax dollars to Exxon Mobil. 650 00:33:39,233 --> 00:33:40,300 It just doesn't make sense. 651 00:33:40,300 --> 00:33:47,867 I think that this administration's policy is to 652 00:33:47,867 --> 00:33:51,867 take all the necessary actions that are responsible and safe to 653 00:33:51,867 --> 00:33:56,734 expand domestic oil and gas production as part of an 654 00:33:56,734 --> 00:33:59,332 all-of-the-above energy strategy that includes investments in 655 00:33:59,333 --> 00:34:05,333 alternative sources of energy like wind, solar and biofuels; 656 00:34:05,333 --> 00:34:10,100 that includes administration actions like the dramatic 657 00:34:10,100 --> 00:34:11,933 fuel-efficiency standards the President put in place, 658 00:34:11,934 --> 00:34:15,600 with all the major automobile companies agreeing with 659 00:34:15,600 --> 00:34:17,533 him to do it. 660 00:34:17,533 --> 00:34:20,699 That action alone will have a dramatic effect on the amount 661 00:34:20,699 --> 00:34:23,699 of oil that we need to import and the amount of money that 662 00:34:23,699 --> 00:34:27,332 the American people can save at the pump. 663 00:34:27,333 --> 00:34:37,967 So I think Exxon Mobil, other major oil companies are doing 664 00:34:37,967 --> 00:34:38,934 very well. 665 00:34:38,934 --> 00:34:43,834 I don't even think they would argue with that statement. 666 00:34:43,833 --> 00:34:46,065 And they certainly don't need these subsidies from us. 667 00:34:46,065 --> 00:34:48,766 The Press: But the administration has often talked about 668 00:34:48,766 --> 00:34:50,699 the way the Chinese have been investing in things 669 00:34:50,699 --> 00:34:52,332 like windmills and solar. 670 00:34:52,333 --> 00:34:56,000 They're also investing very much in fossil fuels. 671 00:34:56,000 --> 00:35:00,100 In fact, about 86 percent of the shares of this company are held 672 00:35:00,100 --> 00:35:02,667 by the Chinese government, so isn't the Chinese government 673 00:35:02,667 --> 00:35:04,000 doing that? 674 00:35:04,000 --> 00:35:05,533 Mr. Carney: Well, I'm sure they are. 675 00:35:05,533 --> 00:35:14,333 But this is not about -- there is not a market reason for us to 676 00:35:14,333 --> 00:35:19,667 subsidize oil and gas companies. 677 00:35:19,667 --> 00:35:21,900 Major oil and gas companies in this country are doing extremely 678 00:35:21,900 --> 00:35:27,400 well, making record or near-record profits. 679 00:35:27,400 --> 00:35:33,000 They do not need, as an incentive to drill and explore, 680 00:35:33,000 --> 00:35:36,033 billions of dollars in taxpayer subsidies. 681 00:35:36,033 --> 00:35:40,165 So I think that's a principle that a vast majority of the 682 00:35:40,166 --> 00:35:42,066 American people can agree with. 683 00:35:42,066 --> 00:35:44,734 Unfortunately, even though a majority of the Senate agreed 684 00:35:44,734 --> 00:35:47,967 with it, because of the rules in place, 685 00:35:47,967 --> 00:35:49,166 you need a super majority. 686 00:35:49,166 --> 00:35:54,500 And unfortunately, the vast majority of Republicans voted 687 00:35:54,500 --> 00:35:57,600 against cloture today. 688 00:35:57,600 --> 00:35:58,567 All the way in the back. 689 00:35:58,567 --> 00:36:01,533 The Press: Yes, I wanted to ask you about ANWR. 690 00:36:01,533 --> 00:36:03,433 When the President was a senator, 691 00:36:03,433 --> 00:36:05,767 he helped filibuster it seven years ago. 692 00:36:05,767 --> 00:36:12,633 Now we have a new, novel approach from both Alaska 693 00:36:12,633 --> 00:36:17,200 senators that would basically allow you to drink ANWR's 694 00:36:17,200 --> 00:36:19,633 milkshake from adjacent state lands. 695 00:36:19,633 --> 00:36:21,100 (laughter) 696 00:36:21,100 --> 00:36:21,933 I'm wondering -- 697 00:36:21,934 --> 00:36:23,467 Mr. Carney: I'm not sure I follow that, but okay. 698 00:36:23,467 --> 00:36:27,200 The Press: They say you can drill horizontally under ANWR, 699 00:36:27,200 --> 00:36:30,933 up to eight miles -- potentially get at a lot of that oil. 700 00:36:30,934 --> 00:36:35,500 And they also say, hey, if the President hadn't helped block it 701 00:36:35,500 --> 00:36:37,967 a number of years ago, it could have been producing a million 702 00:36:37,967 --> 00:36:40,834 barrels a day, which would have maybe not have -- maybe 703 00:36:40,834 --> 00:36:43,933 it wouldn't be a silver bullet, but would have been a bullet in 704 00:36:43,934 --> 00:36:46,834 dealing with high gas prices, potentially keeping tens of 705 00:36:46,834 --> 00:36:48,466 billions of dollars here. 706 00:36:48,467 --> 00:36:50,734 Does the President still want -- still say that 707 00:36:50,734 --> 00:36:52,000 ANWR is off the table? 708 00:36:52,000 --> 00:36:55,000 And is there -- would he be willing to look at something 709 00:36:55,000 --> 00:36:59,633 like that, that gets you some additional oil? 710 00:36:59,633 --> 00:37:02,567 Mr. Carney: Well, I haven't had a discussion with him about 711 00:37:02,567 --> 00:37:04,467 the milkshake principle. 712 00:37:04,467 --> 00:37:06,300 (laughter) 713 00:37:06,300 --> 00:37:09,934 But I can tell you that the Department of Interior recently 714 00:37:09,934 --> 00:37:12,700 approved Shell's Beaufort Sea oil spill response plan for 715 00:37:12,700 --> 00:37:15,033 potential activities off the coast of Alaska that could lead 716 00:37:15,033 --> 00:37:18,000 to greater development there. 717 00:37:18,000 --> 00:37:21,800 And this President is committed to expanding domestic oil and 718 00:37:21,800 --> 00:37:25,266 gas production in a safe and responsible way. 719 00:37:25,266 --> 00:37:30,800 And any suggestion that that's not the case -- I think it's 720 00:37:30,800 --> 00:37:33,700 worth noting that in 2011, we held a lease sale in the western 721 00:37:33,700 --> 00:37:36,767 Gulf of Mexico that made available more than 21 million 722 00:37:36,767 --> 00:37:41,899 acres, equal to an area the size of South Carolina. 723 00:37:41,900 --> 00:37:45,767 And yet, just over 1 million acres was leased by industry. 724 00:37:45,767 --> 00:37:48,799 Twenty million acres went un-leased. 725 00:37:48,800 --> 00:37:54,934 So there are -- we are making available substantial areas for 726 00:37:54,934 --> 00:37:55,934 oil and gas production. 727 00:37:55,934 --> 00:37:59,100 We will continue to do that, whether it's Alaska or the 728 00:37:59,100 --> 00:38:03,333 announcement -- the step forward that Secretary Salazar announced 729 00:38:03,333 --> 00:38:05,633 yesterday that Interior is taking to assess the 730 00:38:05,633 --> 00:38:08,033 conventional and renewable energy resource potential in 731 00:38:08,033 --> 00:38:10,033 the mid and south Atlantic. 732 00:38:11,333 --> 00:38:14,567 We're approaching this holistically and examining 733 00:38:14,567 --> 00:38:19,033 every opportunity to further develop oil and gas in this 734 00:38:19,033 --> 00:38:20,967 country in a safe and responsible way. 735 00:38:20,967 --> 00:38:23,166 I don't have any specifics for you beyond what I just 736 00:38:23,166 --> 00:38:25,066 said about Alaska. 737 00:38:25,066 --> 00:38:28,834 But the President is committed to the safe and responsible 738 00:38:28,834 --> 00:38:33,165 principle, as well as increasing oil and gas production. 739 00:38:33,166 --> 00:38:34,700 Andrei Sitov. Pajalsta. 740 00:38:34,700 --> 00:38:38,567 The Press: Thank you, Jay. A follow-up to Ann's question. 741 00:38:38,567 --> 00:38:42,300 Do you regard the backlash from the Republicans to this episode 742 00:38:42,300 --> 00:38:46,133 with Medvedev as directed primarily against the President 743 00:38:46,133 --> 00:38:48,600 or against Russia, per se? 744 00:38:48,600 --> 00:38:50,165 Mr. Carney: That's a great question. 745 00:38:50,166 --> 00:38:50,734 I don't know. 746 00:38:50,734 --> 00:38:51,967 You'll have to ask them. 747 00:38:51,967 --> 00:38:56,367 What I do know is that I'm pretty sure the Cold War ended 748 00:38:56,367 --> 00:38:58,033 when some of the folks in this room were still 749 00:38:58,033 --> 00:39:00,100 in elementary school. 750 00:39:00,100 --> 00:39:04,133 And any suggestion that Russia is America's number-one 751 00:39:04,133 --> 00:39:12,000 geopolitical foe represents a profound -- or unique 752 00:39:12,000 --> 00:39:13,433 understanding of recent history. 753 00:39:14,367 --> 00:39:18,300 The Press: Are you required to respond to letters such 754 00:39:18,300 --> 00:39:20,133 as the Boehner letter? 755 00:39:20,133 --> 00:39:21,466 Mr. Carney: Is the President? 756 00:39:21,467 --> 00:39:25,834 I don't think we're required to, and I don't have a response from 757 00:39:25,834 --> 00:39:27,299 the President at this time. 758 00:39:27,300 --> 00:39:30,300 But I can tell you that -- look, as you know, 759 00:39:30,300 --> 00:39:33,800 Andrei -- you cover this for the Russian press -- we obviously 760 00:39:33,800 --> 00:39:36,433 have our differences with Russia; 761 00:39:36,433 --> 00:39:39,934 we have a relationship with Russia that allows us to discuss 762 00:39:39,934 --> 00:39:43,767 those differences candidly and openly. 763 00:39:43,767 --> 00:39:47,366 We also have a number of very important areas of agreement. 764 00:39:49,967 --> 00:39:52,033 Because of the policy that this President put in place when he 765 00:39:52,033 --> 00:39:55,266 came into office, the so-called reset policy, 766 00:39:55,266 --> 00:39:57,333 our relations with Russia improved, 767 00:39:57,333 --> 00:40:01,333 and that allowed for greater cooperation between the United 768 00:40:01,333 --> 00:40:04,667 States and Russia on Iran. 769 00:40:04,667 --> 00:40:08,066 It allowed for significant assistance and cooperation from 770 00:40:08,066 --> 00:40:14,033 Russia for the trans-shipment of materiel and other goods to our 771 00:40:14,033 --> 00:40:17,133 troops in Afghanistan. 772 00:40:17,133 --> 00:40:19,533 There are a number of areas, very important areas, 773 00:40:19,533 --> 00:40:22,133 where the United States and Russia cooperate. 774 00:40:22,133 --> 00:40:26,767 And that cooperation is not a good unto itself; 775 00:40:26,767 --> 00:40:30,000 it directly benefits the national security interest 776 00:40:30,000 --> 00:40:31,834 of the United States. 777 00:40:31,834 --> 00:40:35,100 And obviously Russia cooperates because they believe -- the 778 00:40:35,100 --> 00:40:39,066 leadership there believes that it's in their interest. 779 00:40:39,066 --> 00:40:40,500 We obviously -- we do have our differences. 780 00:40:40,500 --> 00:40:42,367 We have had our differences over Syria. 781 00:40:42,367 --> 00:40:45,734 We have had our differences over missile defense. 782 00:40:45,734 --> 00:40:48,500 But as we saw in the meeting between President Medvedev and 783 00:40:48,500 --> 00:40:52,900 President Obama in Seoul, we're able to discuss those 784 00:40:52,900 --> 00:40:58,867 differences and try to work them out constructively, 785 00:41:03,667 --> 00:41:08,799 which is more evidence of the fact that Russia is not our 786 00:41:08,800 --> 00:41:10,900 number-one geopolitical foe. 787 00:41:10,900 --> 00:41:15,467 The Press: If the Republicans choose to make this into a subject before 788 00:41:15,467 --> 00:41:19,633 the elections, of a dispute, would the President welcome 789 00:41:19,633 --> 00:41:24,165 a chance to defend his reset policy? 790 00:41:24,166 --> 00:41:25,633 Mr. Carney: Well, setting aside -- I mean, the President welcomes 791 00:41:25,633 --> 00:41:33,767 an opportunity to discuss and explain his policy towards 792 00:41:33,767 --> 00:41:38,866 Russia and why it has produced tangible benefits to America's 793 00:41:38,867 --> 00:41:42,667 national security interest at any time. 794 00:41:42,667 --> 00:41:47,000 And whether that happens within the context of the election or 795 00:41:47,000 --> 00:41:51,533 in a foreign policy forum somewhere, 796 00:41:51,533 --> 00:41:53,100 or in answer to questions from you, 797 00:41:53,100 --> 00:41:54,433 I'm sure he'll welcome that opportunity. 798 00:41:56,633 --> 00:41:58,734 The Press: Mega Million ticket -- is the President tempted to buy one? 799 00:41:58,734 --> 00:41:59,700 Mr. Carney: No, but I'm going to run out and buy one. 800 00:41:59,700 --> 00:42:00,066 (laughter) 801 00:42:00,066 --> 00:42:01,332 Thanks, guys.