Late last month Congress once again failed to eliminate billions of dollars in tax breaks for oil companies. As early as 2008 Shell, Chevron, BP, ConocoPhillips, and Exxon all said that the subsidies are not needed, especially when oil prices are high. John Hofmeister, former CEO of Shell Oil testified before the House prior to their most recent vote to continue the subsidies. “In the face of sustained high oil prices it (is) not an issue….of needing the subsidies to entice us into looking for and producing more oil”.
what eye thynk: Big oil is raking in enormous profits and they didn’t get to be that profitable by being stupid. While they admit that they don’t actually NEED the subsidies, they do acknowledge that they really LIKE the subsidies, and will gladly continue accepting our unwarranted largesse as long as possible--or until Congress finally stands up and says “No!”.
Don’t look for that to happen any time soon. Why? Can you say “lobbyists”, boys and girls? Big oil companies spent $146M last year lobbying Congress to continue providing tax breaks they admit are unnecessary. Both Democrats and Republicans continue to spout platitudes about how subsidizing oil companies helps to keep gas prices down. At the same time, the Congressional Research Service, a non-partisan think tank that exists solely to provide factual analysis to members of Congress, states that the termination of oil company subsidies would cause gasoline to go up by only a penny or two. But who needs facts when you have lobbyists throwing $146M at you to ignore them?
And we can’t forget the additional money that big oil spends on helping their favorite Congressmen/women get re-elected. Compare the most recent voting record on oil subsidies to campaign donation records and it appears that those who voted to continue the subsidies accepted FOUR TIMES more dollars from big oil than those who voted to end the subsidies. Anyone see a connection?
So Congress gives the oil companies millions of dollars in subsidies. The oil companies then recycle a portion of those dollars back to Congress to guarantee the subsidies continue. Essentially, we’re funding their lobbyists! That is one heck of a recycling program.
the oil companies want it all and they are going after it.
ReplyDeleteWell -- if you add to that the cost of several wars that have so obviously been fought primarily for the benefit of the big oil companies, the cost of corporate welfare becomes truly sickening.
ReplyDeleteIs the American public entirely brain - dead??????