With the price of oil settling near a record high of more than $66 per barrel today and the price of gas nearing $3 per gallon, there is a clear necessity to either boost supply or cut demand -- or preferably both.

With the Republican-sponsored energy bill that passed just before the August recess, the President was able to achieve his long-standing goal to offer tax credits for oil companies that explore for more oil. But now, at The New York Times' Danny Hakim so interestingly reports, the President is backing away from efforts to decrease America's demand for oil, even slightly.

The Bush administration is expected to abandon a proposal to extend fuel economy regulations to include Hummer H2's and other huge sport utility vehicles, auto industry and other officials say.

The proposal was among a number of potential strategies outlined by the administration in 2003 to overhaul mileage requirements for light trucks - sport utility vehicles, pickup trucks and minivans. It had been seen by industry officials as likely to be adopted.

But the impact of the tougher requirements would have been borne almost solely by the increasingly troubled domestic auto industry, a concern for the administration.

[...]

Because cars, S.U.V.'s and other light-duty vehicles account for 40 percent of the nation's oil use, changes in the regulatory system are always watched closely, more so in an era of increased concern over foreign oil imports, rising fuel prices and debate on the effects of global warming.

It is certainly time to replace the last set of fuel efficiency standards, which were adopted in the 1970s, but is it good policy to sidestep the real issues by being excessively lenient on S.U.V.s?

Clearly, the answer is not to force every American to drive a Scion or a Kia. We should be free to own larger and more powerful cars if we deem them necessary. Just the same, it's time to think about some real alternatives to the internal combustion engine.

Honda has already developed a Civic that runs on natural gas. Drivers can fill up their cars at their homes. It's not a perfect solution -- a full tank only gets you about 200 miles -- but, hey, it's a start.

As it stands, however, by denying that the problem exists through the failure to meaningfully increase the standards for S.U.V.s, the Bush administration is just exacerbating the energy crisis.