Campaign 2010

May 06, 2011

Grand Oil Party (GOP) Defends Big Oil’s Big Profits

The real priorities of the Grand Oil Party (GOP) just became crystal clear. The Republican Study Committee –  that represents a majority of the House Republican Caucus – just came to the defense of Big Oil’s massive profits and the taxpayer giveaways they get, according to POLITICO. They had “a message for Democrats who want to end tax incentives for major oil companies: don’t hate them because they’re rich.”

 

RSC members defended Big Oil on the same day House Republicans voted to protect the billions Big Oil companies get in taxpayer giveaways. Last week, the Big Five oil companies reported that their profits increased by 38 percent since this time last year, while middle income families are feeling the squeeze at the gas pump.  House Republicans have raked in $201,893,528 in campaign contributions from Big Oil and gas – over 75 percent of their donations.

 

“House Republicans are now defending the indefensible – they protected taxpayer giveaways for Big Oil companies making record profits and are now defending Big Oil’s record profits at taxpayers’ expense,” said Jesse Ferguson of the Democratic Congressional Campaign Committee. “The Grand Oil Party needs to explain to the American people why Big Oil should profit from taxpayers at the same time they vote to end Medicare.”

 

Background

 

RSC: Dems 'demonize' oil companies. “Rep. Rob Bishop (R-Utah) has a message for Democrats who want to end tax incentives for major oil companies: don’t hate them because they’re rich. As Democrats ramp up their effort to eliminate such tax breaks, members of the conservative Republicans Study Committee argue such a move would do nothing to ease the price of gasoline.” [POLITICO, 5/5/11]

 

House Republicans Block Repeal of Oil and Gas Subsidies. House Republicans opposed a measure that would allow the House of Representatives to approve the Big Oil Welfare Repeal Act of 2011 (H.R. 1689) which would repeal key taxpayer funded subsidies for oil and gas companies. As reported by The Hill newspaper, “House Democrats intend to force a vote on a measure that would eliminate a key oil industry tax break when Republicans bring a bill to expand domestic oil and-gas drilling to the floor Thursday.” [H Res 245, Vote #293, 5/5/11; The Hill, 5/4/11; CBS News, 5/4/11]

 

Big Oil Profits Up 38 Percent. “Americans spent 28 percent more for gasoline during the first three months of 2011 than the same period in 2010. Meanwhile, the big five oil companies—BP, Chevron, Conoco Phillips, ExxonMobil, and Shell—made 38 percent more profit.” [Center for American Progress, 5/3/11]

 

  • ExxonMobil reported profits of nearly $11 billion in the first quarter of 2011, a 69 percent increase. Shell reported profits of $6.3 billion, ConocoPhillips reported profits of $3 billion, Chevron reported $6.2 billion, and BP reported $5.48 billion. [Center for American Progress, 5/3/11; ABC News, 4/28/11; San Francisco Chronicle, 4/30/11]

 

  • In March, the Democratic Steering & Policy Committee held a hearing noting that from 2005 to 2009, the largest oil companies have made $485 billion in profits. [climateprogress.org, 3/01/11]

 

House Republicans have taken  has taken $201,893,528 from the oil and gas industry while in Congress. [opensecrets.org, accessed 5/05/11]

 

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