August 4, 2008 Obama calls for high energy cost rebate checks Play video

(NECN: Lansing, Michigan) - Democrat Barack Obama proposed today that the government sell 70 million barrels of oil from its strategic petroleum stockpile to help reduce gasoline prices.

The presidential candidate said in a major energy speech that in the short-run the move could help drive down gasoline prices that now top $4.00 a gallon. Previously, Obama opposed tapping into the reserve.

Obama called tapping the petroleum reserve a short-term response to a long-term problem.

The Illinois Democrat said U.S. politicians have failed for three decades to deal with the energy crisis and his GOP rival John McCain has "been part of that failure."

"Breaking our oil addiction is one of the greatest challenges our generation will ever face. It will take nothing less than a complete transformation of our economy," he said. "this transformation will be costly, and given the fiscal disaster we will inherit from the last administration, it will likely require us to defer some other priorities."

Obama said the government should give out $1,000 emergency rebate checks for consumers besieged by high energy costs.