Subsidy

Thu, 2012-08-02 13:09Farron Cousins
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What To Expect When You’re Electing: Mitt Romney’s Energy Advisors

In the last few months, the press has been drawing a lot of parallels between presumptive Republican presidential nominee Mitt Romney and former Republican President George W. Bush. And they have plenty of reasons for doing so. Romney has already tapped many of the same Bush economic and foreign policy advisers, and rumors were swirling earlier this year that Romney would tap Bush’s energy advisers as well.

As it turns out, those rumors are true.

Climate Progress has compiled a list of people who have been tapped, or will likely be tapped, by Romney for his energy team. The roster is a virtual “Dream Team” of dirty energy industry representatives from the coal industry, the shale gas industry, the oil industry, mountaintop removal mining companies, and lobbyists - all of whom were close advisers and friends of George W. Bush.

The most terrifying name on the list is American Petroleum Institute president Jack Gerard. Climate Progress points out that Gerard has been a longtime supporter of Romney, and that Romney considers Gerard a close, personal friend. Gerard’s stated goals, goals that we have to assume he’ll pressure Romney to fulfill, include placing an oil lobbyist in every district in America, opening up all federal lands for oil drilling, and removing many existing safety regulations.

Sun, 2012-07-29 13:13Farron Cousins
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How Do You Spend $375 Million A Day? Ask The Oil Industry

The average U.S. household has seen both their net worth and their average income steadily decline over the last seven years. Unemployment in the United States still remains at uncomfortably high levels, and the poverty rate is about to reach highs that haven’t been seen since the 1960’s. But as average citizens are struggling to provide food for their families and gainful employment, there are a special few in the U.S.A. who have more cash than they know what to do with. Those special few would be the oil industry.

While most of us in the U.S. were cringing every time that ticker on the gas pump climbed higher and higher, executives at the top five oil companies were squealing with delight as their profits climbed even faster and higher than the prices at the pump.

This week, oil companies are sheepishly coming forward with their 2nd quarter earnings statements, likely praying that Americans forget about the fact that gas prices were recently at near-historic highs in areas of the country. From Climate Progress:
  

The top two corporations on the Fortune 500 Global ranking, Royal Dutch Shell and ExxonMobil, announced their 2012 second-quarter earnings today, bringing the total profits for three Big Oil companies to $44 billion for 2012 or $250,000 every day this year. Exxon profited by $16 billion this quarter, bringing its earnings for 2012 to $25 billion.

The New York Times wrote that Exxon and Shell’s earnings “disappoint,” because energy prices unexpectedly dropped for consumers this summer. Put their profits in the appropriate context, however, and Exxon and Shell still made a combined $160,000 per minute last quarter, even though the top five oil companies benefit from $2.4 billion federal tax breaks every year.
 
Sun, 2011-10-02 12:06Farron Cousins
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Oil Lobbyists Targeting “Super Committee”

As the so-called “Super Committee” works to figure out how to trim $1.2 trillion from the U.S. government’s federal deficit, the dirty energy industry has their lobbyists working overtime to make sure that their billions of dollars in annual subsidies aren’t among the items on the chopping block.

The Super Committee only has until Thanksgiving to submit their proposals to President Obama. And not being ones to miss an opportunity, members on the committee have scheduled dozens of personal fundraisers for their campaigns before that deadline hits. And many of the companies who fear that their subsidies could be cut will be in attendance. After all, the lobbyist blitz contains more than 180 former staffers of members of the Super Committee, so access is not an issue, and no introductions will be necessary.

The New York Times lays out the issue as follows:
  

Hundreds of lobbyists, including many former Congressional officials and frequent campaign contributors, are making their cases to the committee members.

Ethanol fuel producers, oil companies, corporate jet owners and many other businesses want the committee to guard their own special tax breaks.

“Everybody’s at risk,” said Howard Marlowe, president of the American League of Lobbyists, “and so everyone’s going to be out there lobbying.”

With the lobbying, of course, come valuable campaign contributions. Despite calls from watchdog groups to suspend their fund-raising, most committee members are continuing to raise money from many of the same industries affected by their work.
 
Wed, 2011-03-09 11:05Farron Cousins
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Congress Seeks to End Billions in Subsidies for Oil Companies

As both oil industry profits and gas prices continue to rise, Congressman Bruce Braley (D – IA) believes that it is time to end the billions of dollars worth of subsidies that the United States hands out to oil companies on an annual basis. In his proposed Clean Energy Jobs bill, Braley would end the tax breaks and other subsidies that flow to the oil industry, and use that money instead to create clean energy jobs, invest in biofuel production, and pay down the national debt.

These oil industry subsidies are nothing to scoff at. In 2005, then-President George W. Bush authorized a total of $32.9 billion worth of new subsidies for the industry over five years, bringing the annual total of their subsidies to a staggering $39 billion. The new subsidies were put in place at a time when Americans were paying the highest price for gasoline at the pump in history, which coincided with the largest oil company profits to date.

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