WASHINGTON - September 28 - Oil prices have now hit a record $50 a barrel for the first time. Over the past four years, the average American household would have saved $4,837 at the gas pump if all vehicles had used existing gas-saving technology to average 40 miles per gallon according to new analysis by the Sierra Club. With oil prices continuing to rise toward new record levels, consumers will continue to pay more at the gas pump. While the Bush administration has the power to raise Corporate Average Fuel Economy (CAFE) standards, it has refused to meaningfully raise standards and has fought efforts in Congress to make improvements. Because the Bush administration is siding with their friends in the auto and oil industry, American consumers will continue to pay more at the gas pump.

"Making our cars and trucks go farther on a gallon of gas is the biggest single step we can take to saving money at the gas pump and curbing global warming," said Dan Becker, Washington Director of the Sierra Club's Global Warming & Energy Program. "The Bush administration has put Americans over a barrel by refusing to require automakers to improve fuel economy."

Over the past four years, gasoline prices have risen by 27 percent. Instead of articulating an effective energy policy to protect consumers, the Bush administration continues to call on Congress to pass its deeply flawed and polluting energy policy. However, this energy policy fails to include effective solutions that would cut oil consumption and lower consumer energy bills. As a result, a report by the Department of Energy concluded that the energy bill currently before Congress would do nothing to increase energy supplies or cut imports of oil and might actually increase gas prices.

The United States consumes 25 percent of the world's oil, yet holds less than 3 percent of proven oil reserves. The only way to cut U.S. oil dependence is to reduce demand. The greatest reductions in demand can come from U.S. vehicles, which consume over 8 million barrels of oil per day.

"We will never be able to drill our way to energy independence," said Becker. "But the Bush administration prefers to enrich auto and oil companies than protect consumers. Instead of saving money at the gas pump with existing gas-saving technology, this administration just wants us to continue down a path that only deepens our oil dependence. It's the mentality of an administration run by former oil and auto industry executives."

The recent spike in oil prices reflects recent concerns over civil strife in Nigeria, the fifth largest OPEC producer. While rising oil prices reflect current concerns surrounding international production, it also reflects growing international demand. The U.S. Department of Energy projects that world oil consumption will jump from its current levels of 79.26 million barrels per day (mbd) to 120.9 mbd by 2025 - an increase of 53 percent. Given this trend, the United States will become increasingly dependent on an international oil market where demand stretches supply to its maximum, resulting in more frequent price spikes and disruptions. The only way to insulate the United States from such variability is to cut our consumption of oil.

"Using an extra 4 million barrels of oil per day makes America unnecessarily vulnerable to international oil markets and price spikes," said Becker.

On-the-shelf technology like hybrid-electric powertrains, more efficient engines, smarter transmissions, and better materials could make all new cars, pickup trucks, and SUVs average 40 miles per gallon. Taking this step would save nearly 4 million barrels of oil per day by 2020 - more oil than we currently import from the entire Persian Gulf or could ever take out of the Arctic National Wildlife Refuge, combined. Stronger fuel economy standards would also keep close to 345 million tons of heat-trapping carbon dioxide (CO2) emissions out of the atmosphere. That is more global warming pollution than is released by the entire country of Mexico each year.

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