April 2011 Laser Talk (U.S.)

CCL LASER TALK (U.S.) APRIL 2011
TIME TO END SUBSIDIES FOR BIG OIL

As the debate rages in Washington about how to cut the federal deficit, one question looms large:

Why do we still provide billions of dollars in subsidies and tax breaks for big oil companies?

Exxon-Mobil reported a profit of $45.2 billion in 2009, but paid nothing to the IRS.

Here’s one example of the unnecessary breaks given to oil companies: Since 1995, oil companies have been given royalty relief for deepwater drilling projects in the Gulf of Mexico. When this relief was given, the price of oil was $18 a barrel, and companies were saying they needed the relief as an incentive for more costly drilling. With oil prices hovering at $100 a barrel, such an incentive is no longer necessary.

Rep. Earl Blumenauer (D-OR) has introduced legislation that would end giveaways for big oil companies and help reduce the federal deficit. Called the End Big Oil Tax Subsidies Act (H.R. 601), the bill would eliminate subsidies and tax breaks for big oil and save our government $40 billion over the next five years.

Such subsidies also give the fossil fuel industry an unfair advantage over clean energy. This prevents our nation from fully developing the wind, solar and other renewable resources that will create millions of new jobs, clean up our air and water and reduce our greenhouse gas emissions.

Congressman [Congresswoman], will you help end government giveaways to the oil industry by co-sponsoring the End Big Oil Tax Subsidies Act?