House Democrats took aim at oil companies Monday, arguing that billions in subsides for big oil would be put to better use in areas like clean energy technology and education.
During the meeting, details emerged of how oil companies, after making record profits last year, are still getting tax breaks crafted in 1918, which were designed to offset production costs for the then-newly emerging industry.
Other subsidies, such as the Deep Water Royalty Relief Act, passed in 1995 when oil prices were just $18/barrel, is still in effect today, while prices are topping $100/barrel.
A U.S. Government and Accountability Office (GAO) report released this week has singled out the oil and gas resource industries management as the biggest area of concern for this two-year period.
GAO found data on production of oil and gas from federal leases missing, as well as inconsistent data collection on the reporting of the sale of oil and gas.
“We are essentially giving away up to $50 billion to oil companies that are taking home record profits,” said Elijah Cummings (D-Md.).
In 2008, the GAO reported that the United States ranks 104 out of 115 oil and gas producers for revenues collected from these resources.
There are 400 manufacturing facilities for wind generation in the United States, billions in private investments are being made, and the industry employs 80,000 people, said Carnahan.
The top three oil companies–Exxon Mobile, BP, Shell, and Chevron—made $485 billion in profits yet they collectively reduced the U.S. workforce by 10,000 employees, said Markey.
According to the American Petroleum Institute (API), the oil and gas industry’s main national trade association, the industry directly employs 2.1 million Americans. Their top policy priorities include gaining greater access to off-limits federal lands, and developing large reserves of natural gas found in underground shale in Pennsylvania, New York, and other states.
– from theepochtimes.com