Who Hijacked Our Country

Tuesday, March 28, 2006

YOU Are Subsidizing the Oil Industry

As we all know, the oil industry has been enjoying record profits. We can all argue about why they’re so wealthy. They’re brilliant entrepreneurs who’ve earned every cent. They’re a bunch of greedy bastards, engineering a fake “crisis” just so they could jack up their prices. Etc.

In any case, YOU have been giving YOUR tax money to the oil companies.

New oil drilling “incentives” were passed last summer. I would’ve thought the sky-high price of oil would be enough of an incentive. Did people need an “incentive” to go digging for gold in the 1800s?

With these “incentives,” oil companies won’t have to pay royalties on any oil or gas produced in publicly-owned waters in the Gulf of Mexico. Over the next five years, the oil industry will keep about $7 billion in royalties that they otherwise would’ve paid.

Hey, let’s pat ourselves on the back. We all took part in this $7 billion contribution to the oil companies. God we’re generous. (Or maybe “chump” is the right word.)

And that’s not all. Kerr-McGee Exploration and Production has filed a lawsuit to increase the oil industry’s exemption from paying royalties. If they win their case, that $7 billion could quadruple to $28 billion.

Rep. Edward Markey, (D-Mass.) said “The big lie about this whole program is that it doesn’t cost anything. Taxpayers are being asked to provide huge subsidies to oil companies to produce oil — it’s like subsidizing a fish to swim.”

An independent oil explorer in Texas agreed. He said “It’s hard to make a case for royalty relief, especially at these high prices. But the oil industry is like the farm lobby and will have its hand out at every opportunity.”


Anonymous JollyRoger said...

These neocon Chimp worshippers still dare to call other people "liberal."

These are the biggest Goddamned bunch of Socialists I have ever seen. And they still claim to be "against" Socialism! Hell yeah, if "Socialism" means helping out a poor person, or paying your fair share of taxes. A poor person "helping out" rich individuals and corps, however, is "free enterprise" at work!

The Realm of El Shrubbo-Socialism for the rich, the shitter for the rest of us.

March 29, 2006 at 3:17 AM  
Blogger Tom Harper said...

Jolly Roger: Yup, that's pretty much it. Taxpayer giveaways to large corporations; sink or swim for everyone else.

March 29, 2006 at 10:33 AM  
Blogger denny said...

while i don't disagree... the corporate welfare exists and it is sick. when it's welfare for oil companies it seems even worse.

that said, i do think oil and gas prices will continue to rise. in part because that's what we can expect from capitalism... hell, look at the cost of a pair of nikes, cost and profit. it is beyond outrageous. but it's not just capitalism, it is the natureof the resource.

i'd suggest checking http://theoildrum.com and http://peakoil.com for information about peak oil and what we can expect with oil supplies.

March 29, 2006 at 8:07 PM  
Blogger Tom Harper said...

Denny: I have no quarrel with high oil prices; I just think it's wrong for the public to be subsidizing the oil companies on top of all the money they're already making.

Yeah, peak oil, and future energy supplies in general, are definitely major issues. The global economy could be brought to its knees if these issues aren't dealt with.

Your blog looks interesting. I just saw it a little earlier on either BlogMad or Blog Explosion.

March 29, 2006 at 8:33 PM  
Anonymous Anonymous said...

What people keep forgetting is that there is already a Oil Depletion Allowance which allows Oil companies to take huge deductions/Depreciations on their resouces (ie Oil is not going to last forever so we are letting you have some money at Taxpayer's expense to cover the cost of someday running out).

Also are these Tax Allowances for "New Oil" (imported) are much higher then "Old Oil" (domestic) hence our Capped up wells with little interest in keeping them going.

Money Hand over fist


March 30, 2006 at 6:56 AM  
Blogger Tom Harper said...

Erik: Oh yeah, they're making money hand over fist, that's for sure. They shouldn't need help from the taxpayers on top of everything else.

March 30, 2006 at 9:49 AM  
Anonymous James said...

This sickens me.
If Americans cant agree on anything else can we all agree that the Oil companies don't need anymore money?

If not we are doomed.

March 31, 2006 at 11:54 PM  
Blogger Tom Harper said...

James: Yeah, it's sickening all right. Whatever money they "need," they sure don't need our tax dollars.

April 1, 2006 at 12:16 AM  

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