The High Cost of Gasoline-A Tale of Profits, Government Subsidies and Republican Collusion

It is outrageous that as Americans face pain at the gas pump, oil companies reap astronomical profits and continue to receive taxpayer subsidies. Last year, the Big Five oil companies - Exxon Mobil, BP, Conoco Phillips, Shell, and Chevron - made $137 billion in profits - double the amount they made just two years ago. It is vital that we repeal these wasteful oil subsidies and instead invest in clean energy that can be made right here in America, creating jobs and reducing our dependence on oil.

That is why I proudly co-sponsored S.2204, the Repeal Big Oil Tax Subsidies Act, which would have eliminated $24 billion in subsidies to big oil companies over the next decade. It is stunning that Senate Republicans voted to block this bill, but you can count on me to keep fighting to end wasteful oil subsidies.

We must also continue to crack down on fraud and speculation, which are driving up the price of gas. According to U.S. Commodity Futures Trading Commissioner Bart Chilton, speculation adds $7 to $15 on each tank of gas. I am pleased that the Obama Administration's Oil and Gas Price Fraud Working Group is working to identify fraud in the oil and gas markets and its effects on U.S. consumers. Gas prices are too high, and I will continue working to provide relief to our families.

I also applaud the Administration's efforts to expand domestic oil and gas production and increase fuel efficiency. Since President Obama took office in 2009, domestic oil production has increased every year, and is now at the highest level in eight years. In addition, under new fuel economy standards proposed by President Obama, the auto industry is working to significantly improve fuel efficiency standards by 2025. Along with the Administration's initiatives to develop sources of clean alternative energy, these efforts will help us decrease our demand for foreign oil and achieve energy security.

Again, thank you for writing to me. Be assured that I will continue working to help Americans at the gas pump and increase our energy independence.

Sincerely,

Barbara Boxer

http://my.auburnjournal.com/detail/204479.html

Unfortunately the Senate voted for the oil subsidies while cutting money for wind power.