Spin Cycle

McCain Backup for "Celeb"

AD FACTS: Script For "Celeb" (TV :30)

ANNCR: He's the biggest celebrity in the world. But, is he ready to lead? With gas prices soaring, Barack Obama says no to offshore drilling.

· Barack Obama Opposes Lifting The Ban On Offshore Drilling. Obama: "The politics may have changed, but the facts haven't. The accuracy of Sen. McCain's original position has not changed: Offshore drilling would not lower gas prices today, it would not lower gas prices next year and it would not lower gas prices five years from now." (Sen. Barack Obama, Remarks At Press Availability, Jacksonville, FL, 6/20/08)

· John McCain Proposed Lifting The Ban On Offshore Drilling And Letting States Decide If They Wanted To Explore And Drill For Energy. McCain: "But I also believe that lifting the moratoria from offshore drilling or oil and natural gas exploration is something that we should place as a very high priority. And again, I don't want to dictate to the states what they should do, but I think that the states can be provided with additional incentives such as a greater share of the revenues than is presently the case." (Sen. John McCain, Remarks At A Press Availability, Arlington, VA, 6/16/08)

· Harvard Professor And Former Council Of Economic Advisors Chairman Martin Feldstein: "Increasing The Expected Future Supply Of Oil Would Also Reduce Today's Price." "Any policy that causes the expected future oil price to fall can cause the current price to fall, or to rise less than it would otherwise do. In other words, it is possible to bring down today's price of oil with policies that will have their physical impact on oil demand or supply only in the future. For example, increases in government subsidies to develop technology that will make future cars more efficient, or tighter standards that gradually improve the gas mileage of the stock of cars, would lower the future demand for oil and therefore the price of oil today. Similarly, increasing the expected future supply of oil would also reduce today's price. That fall in the current price would induce an immediate rise in oil consumption that would be matched by an increase in supply from the OPEC producers and others with some current excess capacity or available inventories. Any steps that can be taken now to increase the future supply of oil, or reduce the future demand for oil in the U.S. or elsewhere, can therefore lead both to lower prices and increased consumption today." (Martin Feldstein, Op-Ed, "We Can Lower Oil Prices Now," The Wall Street Journal, 7/1/08)

· CNN's Frank Sesno: "Expectations Of More Production Can Send Prices Down." FRANK SESNO: "Obama's criticized McCain for saying more drilling would have a positive psychological impact. But there is psychology in energy markets, worries about soaring demand in China or supply disruptions in Nigeria send prices up. Expectations of more production can send prices down." (CNN's "Situation Room," 6/26/08)

· Omer Bhatti, The Head Trader At WorldSpreads, Said That The U.S. Offshore Drilling Plan Will Help Lower The Price Of Oil. OMER BHATTI (Head Sales Trader at WorldSpreads): "I think the offshore drilling plan that was agreed in the U.S. kind of helped the scenario to create that pullback scenario." (CNBC's "Worldwide Exchange," 7/28/08)

ANNCR: And, says he'll raise taxes on electricity.

· Barack Obama Told A Texas Newspaper: "What We Ought To Tax Is Dirty Energy, Like Coal And, To A Lesser Extent, Natural Gas." ("Q&A With Sen. Barack Obama," San Antonio Express-News, 2/19/08)

· Coal Is The Largest Source Of Electricity In America, Accounting For Nearly 49 Percent Of U.S. Total Net Generation In 2006. (Energy Information Administration Website, www.eia.doe.gov, Accessed 6/9/08)

· "The U.S. Has The World's Largest Coal Reserves, With The Western U.S. Accounting For 55 Percent Of Current U.S. Coal Production." (Energy Information Administration Website, tonto.eia.doe.gov, Accessed 6/9/08)

· Natural Gas Is The Second Largest Source Of Electricity In America, Accounting For 20 Percent Of U.S. Total Net Generation In 2006. (Energy Information Administration Website, www.eia.doe.gov, Accessed 6/9/08)

· "The U.S. Is The World's Largest Consumer And Second-Largest Producer Of Natural Gas." (Energy Information Administration Website, tonto.eia.doe.gov, Accessed 6/9/08)

ANNCR: Higher taxes, more foreign oil, that's the real Obama.

JOHN MCCAIN: I'm John McCain and I approved this message.