Back in 2008, the CEO of Shell Oil, John Hofmeister, testified in Congressional hearings that when oil and gasoline prices are high that big oil companies do not need the subsidies they get from the government. He also noted that executives of major oil companies agree.
These federal subsidies were originally designed to encourage exploration for oil, but Hofmeister says that there is more than enough incentive to drill when oil prices are above $70 a barrel, which they have been since the middle of 2007. In fact, oil is well over $100/bbl now.
Fast forward to now. Hofmeister is now retired as the CEO of Shell, but last month he repeated his statement that the big oil companies do not need these subsidies to Congressman Edward Markey (D-MA), who then introduced legislation to eliminate $5 billion a year in subsidies to major oil and gas companies.
The Republicans claim that they are trying to reduce government spending. They are more than willing to cut teacher pay, eliminate firefighters, and other drastic measures that will hurt us as a country. But when House Democrats offered a Motion to Recommit to the Republican’s short-term spending bill to end subsidies to large oil companies, the Republicans voted against it. Unanimously.
This should come as no surprise. Republicans have received three times as many campaign contribution dollars from big oil companies as do Democrats. So of course Republicans are not going to reduce the deficit by billions of dollars a year, even though the oil companies are hugely profitable and in fact admit they don’t even need these subsidies.
I guess some spending is more equal than other spending. They are more than willing to reduce the deficit on the backs of the middle class, the poor, and the elderly, but won’t spend a penny less for their friends in big multinational corporations.
3 Comments
My congressman is Dem as is both of my Senators. I will call the 2 republican congressmen form my state and voice my concern and opinion that we should not subsidize and big corporation.
Thanks IK for highlighting more outrageous behaviour. I am meeting with Senator Merkley tomorrow and I’ll be sure to mention it 🙂
Let’s see, the rich don’t want the tax cuts, but they were extended. The oil companies don’t want the subsidies, but they were extended. Scott walker is in bed with the Koch brothers.
Which party is out of touch with reality? Which party has no social conscience? It isn’t just Glenn Beck who has no social conscience.
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[…] few days ago, I posted a story about the Republicans unanimously voting to give $5 billion a year in subsidies for big oil […]
[…] Five billion dollars every year in federal subsidies to big oil companies, which the companies themselves say they don’t need as long as oil prices are above $70 a barrel. […]
[…] So it is no surprise that on Thursday Boehner wouldn’t even allow a vote to occur on ending oil company subsidies. Remember, these are subsidies that even the oil industry admits they don’t need. […]
[…] these are the subsidies that even oil company executives say they don’t need. But what makes this hypocritical is that even the Republicans are saying that we should abolish […]
[…] these are the subsidies that even oil company executives say they don’t need. But what makes this hypocritical is that even the Republicans are saying that we should abolish […]