BIG OIL HERE CONGRESS GOES AGAIN
It is the same ole song, as a line from an old Herman’s Hermits hit back in the 60’s “2nd verse same as the 1st” actually it’s the umpteenth time Oil Executives have been called to testify before the US Congress. Gas and oil prices go up, Congress ‘out of the blue’ appears to be aggressive presenting to the American public how serious they are ‘calling on the carpet’ these multi-billionaire executives. Unfortunately, the ‘do nothing Congress’ will stick out their chests, slam their hands down, raise their voices, yell at the oil company executives – all as a “show” that is as theatrical as any Broadway play.Of course, Congress will NOT DO ANYTHING and HAS NOT DONE ANYTHING about the high gas prices. It is a manipulative tactic common to Mr. Bush and Republican powers-that-be. I say that because at least Democratic members of Congress have ‘attempted’ to eliminate the huge tax breaks big oil companies receive from the Mr. Bush. The tax break amount is up to $33 BILLION and counting! Under the Bush administration oil company executives have been called before Congress (at tax payer’s expense) 3 times.
1) November 9, 2005 oil company executives were called before Congress after Hurricane Katrina and asked to explain high oil prices as these oil companies continued to enjoy huge profits, as Senators again realized American citizens were being gouged. (During the 3rd quarter of 2005 oil company profits reached a record $25 billion at that was when the price of oil was $70 a barrel.)
Only 28 states have laws against price, but Mr. Bush’s Federal Trade Chairman Deborah Platt Magjoas advised against establishing a Federal price gouging law stating “such a law would do more harm than good!” So Mr. Bush and company support price gouging of hard working Americans! During this hearing, Senators pointed out oil executives were reaping multimillion-dollar bonuses on top of their already multimillion dollar salaries as “working people struggled” to pay for gasoline and face the specter of soaring home heating bills this winter. “
Congressional Democrats, joined by a few Republicans, called for a windfall profits tax on oil companies. Of course, the crybaby oil execs said a tax would inhibit investment in domestic energy projects. What investment? (They’re only investing 3% of their profits)
Both Republicans and Democrats urged the companies to use more of their profits to build refineries and other energy projects. However, infamous Senator Larry Craig, R-Idaho defended the oil executives. Congress urged the oil execs to make significant personal and corporate contributions to energy assistance programs for the poor, but none of the executives did.
Some senators at the hearing said Congress should look at rolling back tax breaks given to the oil industry in the energy bill earlier this year. Of course Mr. Bush’s Republicans have voted against such a measure. Of no surprise, Republicans have always been less hostile to the oil industry than the Democrats, but even the Republicans admitted to being under pressure from their constituents to do something about energy prices, but constituent requests have fallen on deaf political ears.
ABSOLUTELY NO ACTION WAS TAKEN BY CONGRESS AS A RESULT OF THESE HEARINGS.
2) March 2006, oil company executives were again called before Congress when the price of oil reached $75 per barrel. Again Senators raised their voices, yelled at the oil executives about why Americans continue to pay record prices for gas as oil companies profits continue to soar.
It was the second time industry executives have appeared before Congress in four months.
Oil executives from Exxon Mobil Corp, Chevron Corp, ConocoPhillips, BP, Shell and Valero all appeared calm and well-spoken even though they acknowledged on 3% of these record profits were actually being invested in developing alternative energy sources.
So where did the rest of the profits go? The oilmen pointed out that renewable energy is not their primary business, said most of the profits were returned to shareholders in the form of stock buybacks or dividend hikes.
Congress also asked the executives if, in a time of such prosperity, any of them still thought they needed the $2.8 billion in subsidies that went to the energy industry. No one responded.
One of the few committee members not putting Big Oil through the ringer was Republican Sen. John Cornyn from Texas saying “It isn’t a crime to make a profit.”
Again there was no action taken by Congress and oil companies were allowed to keep their more than $18 billion in tax subsidies.
3) May 21, 2008, for a 3rd time, amid increasing public outcry over record-shattering oil and gas prices, senators hauled industry executives back to Washington in to testify about the recent run-up in gas prices, now at $132 per barrel. The committee grilled executives from Exxon Mobil, ConocoPhillips Co, Shell Oil Co, Chevron and BP as to how their companies can in good conscience make so much money, while American drivers pay so much at the pump.
“You have to sense what you’re doing to us – we’re on the precipice here, about to fall into recession,” said Senator Richard Durbin (D-Ill.) “Does it trouble any one of you – the costs you’re imposing on families, on small businesses, on truckers?” Ironically, the executives again complained large parts of the U.S. that are currently closed to drilling – like sections of Alaska, the Rocky Mountains and the continental shelf – should be opened, but Congress has known this for years and Mr. Bush’s Republicans blocked this effort for 6 years under Mr. Bush.
Again Congress took issue with the amount of money oil firms are investing in finding oil, and investing in renewable energy. Haven’t we heard these SAME complaints 2 times earlier?
Committee Chairman Sen. Patrick Leahy, D-Vt., likely summed up the feeling of many senators on the panel. “The people we [Congress] represent are hurting, while your companies are profiting,” he said. “We need to get some balance.” In April, roughly the same lineup defended their firms before Congress. Again Congress asked the oil executives why they needed some $18 billion in federal subsidies in light of their record profit, this time with no answer.
For a 3rd time under Mr. Bush, Congress criticized the oil companies for not investing enough in finding new oil and developing renewable resources. The oil men said they’re making business decisions in the best interest of their shareholders. They repeated their often-stated position that the best way to lower prices and bring more oil to market is to open up wide swaths of the U.S. that are currently off-limits to drilling. (Democrats generally want to increase taxes on Big Oil and use the money to fund renewable energy research since oil companies have basically refused to do so.)
Again, there was absolutely NO ACTION taken by Congress.
Where are the disputed drilling locations in America?
The Arctic National Wildlife Refuge, the Rocky Mountains, the eastern Gulf of Mexico and the outer continental shelf. Federal law restricts access to resources in these areas enacted as a result of several oil spills. Many oil companies are still fighting to pay fines and penalties as a result of the damage from more than 20 years ago.
Before the House of Representatives passed the federal budget in 2005, the Republican led Congress stripped out a provision that would have allowed oil companies to drill for oil in the Arctic National Wildlife Refuge, and could generate as many as 16 billion barrels of oil, enough to replace about 30 years worth of oil imports from Saudi Arabia.
In addition, partly because of opposition by lawmakers from Florida and California, Congress bans oil and natural gas exploration in the eastern Gulf of Mexico and in the outer continental shelf.
It is ironic that during the 1st 6 years as Republicans controlled Congress, they opposed opening up various parts of the country for drilling, but Republicans now favor opening up the Alaska Wildlife Refuge, large parts of the Rocky Mountains, and areas off the east and west coast that have been closed to drilling since the 1970s following a public backlash after several big oil spills.
How absurd Congress and big ‘Oil’ only focus on 3 areas for drilling! Yes they may contain significant oil resources, but as vast a country the size of the United States, plus the US Virgin Islands, Puerto Rico, Guam and the Hawaiian Islands – the possibilities are endless!
In Summary:
Who are these powerful oil companies, who run one of the most powerful lobbyist groups in Washington, (I believe they buy the support of members on Congress – truthfully, isn’t that what lobbyists actually do?) Exxon Mobil Corp., BP America, Inc., Chevron Corp, Shell Oil Co., and ConocoPhillips. These are the big oil companies who earned another year of record profits; which in 2007 alone were over $123 billion! Of course they have US Citizens best interest at heart!!
The outcome of all this Congressional drama was a lot of wasted taxpayer money conducting these hearings; a lot of gas was used by the oil executives flying around in their private jets to Washington which was charged to American taxpayers. Don’t hold your breath waiting for lawmakers to take any action. Congress would rather spend their time holding hearings, which are a little more than hot air, than take any action to open up drilling areas, enact windfall profits taxes and eliminate tax breaks for the big oil companies. If lawmakers were serious about bringing down oil prices, they would open these untapped domestic resources. That would ease our dependence on imports and boost energy supplies.
What can Americans do? Write or call your congressional Representatives http://www.usa.gov/Contact/Elected.shtml or http://w2.eff.org/congress/ and demand they:
1) Enact a Federal Price Gouging law to prevent oil companies from ripping off American Consumers
2) Enact a ‘wind-fall’ profits tax for oil companies who enjoy record-breaking profits while refusing to invest their money in drilling for oil in this country
3) Require the government to lift drilling location restrictions in The Arctic National Wildlife Refuge, the Rocky Mountains, the eastern Gulf of Mexico and the outer continental shelf, while doing so in an environmental friendly manner
4) Remove the tax breaks Mr. Bush gave big oil companies so $33 billion can be added back into the coffers of the American tax payers.
[youtube]http://www.youtube.com/watch?v=Zlm4Hvu1hWM[/youtube]
Filed under: Big Oil
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