Democrats Press Plan to Cut Oil Subsidies

Source: New York Times

June 18, 2007
Democrats Press Plan to Cut Oil Subsidies
By EDMUND L. ANDREWS

WASHINGTON, June 16 — Senate Democrats are seeking a major reversal of energy tax policies that would take billions of dollars in tax breaks and other benefits from the oil industry to underwrite renewable fuels.

The tax increases would reverse incentives passed as recently as three years ago to increase domestic exploration and production of oil and gas. The change reflects a shift from the Republican focus on expanding oil production to the Democratic concern about reducing global warming.

On Tuesday, the Senate Finance Committee will take up a bill that would raise about $14 billion from oil companies over 10 years and would give about the same amount of money on new incentives for solar power, wind power, cellulosic ethanol and numerous other renewable energy sources. The bill is one of the signature issues this year for Democrats, along with immigration and the war in Iraq, and one in which they hope to clearly distinguish themselves from the Republicans.

But Senate Democrats are expected to go beyond the $14 billion in tax changes in the draft bill. Democratic officials said the committee is all but certain to adopt a proposal by Senator Jeff Bingaman of New Mexico that would raise $10 billion from companies that drill for oil and gas in federal waters but do not currently pay royalties to the government.

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Read more: http://www.nytimes.com/2007/06/18/washington/18oil.html?_r=1&adxnnl=0&oref=slogin&adxnnlx=1182132023-GYniWTbdn3rOLaJwAzn4UQ&pagewanted=print

They don't need the handouts.

The Bush oil mafia will fight cutting the giveaways to the death.

The oil co's will no doubt reduce production output. They only care about earning a profit and reducing production means lower costs to them (fewer employees & other costs of production) will insure their continued high profit rates.

What would really upset oil co's would be legislation that has the goal of lowering gasoline prices at the pump level.

To be followed by...

The change reflects a shift from the Republican focus on expanding oil production to the Democratic concern about reducing global warming.

to

Democratic officials said the committee is all but certain to adopt a proposal by Senator Jeff Bingaman of New Mexico that would raise $10 billion from companies that drill for oil and gas in federal waters but do not currently pay royalties to the government.

It's not about global warming, and the NYT has really missed the mark here. It's about the energy companies not paying their fair share while they're making record profits. It's about someone drilling for oil/gas in my own yard (whether that yard is in New Mexico or Wisonsin is irrelevant) and not paying me for it.

Like all the other good ideas since JFK.

who was the exec that got the $450 million retirement plan.
who's in the whitehouse, 2 oil men, what, huh? geezzz...

That is less than the oil companies make in Net Profit in three months..Oh they arte going to be hurt so damn bad they may as well close down operations now. Can you imagine if they can only make ninty million dollars a day instead of a hundred million dollars Net Profit and that is only one company that does that Exxon. Start adding all the rest up and the daily amount of Net Profit is absolutely staggering..

:sigh:

If congress removes the oil subsidies, then the price at the pump will go up, because of what ever additional cost that was subsidized will now come out of the oil companies pockets.

If this is to happen, what also needs to be done , is to take those subsidized monies and use it for investment into our nations mass transportation infrastructure.

On top of that, give the people who don't have available mass transit in their area a gas rebate and give the people who use mass transit a federal tax deduction.

Until some real thought is given to this and a real analysis of cause and effect are explored, then this is all bullshit and mirrors.

The next time some ultra conservative lectures me about the free market I think I will just vomit in their face. :P

If energy is such a big national security issue, as the righties always remind us, then I think we should nationalize all the oil, natural gas, electricity production, etc.
Put it all under the control and protection of the American people.

~ Paul Wellstone.

:toast: to the majority!