Oh, the poor oil companies.

[flamin lib]

On Wednesday the House of Representatives passed H. R. 5351, the Renewable Energy and Energy Conservation act of 2008. It passed along party lines, 236 to 174. Of course Joe Barton voted against it and George Bush says he’ll veto it if it gets past the Senate.

The bill would rescind tax credits and incentives to the five largest oil companies in the United States to the tune of $1.8 Billion a year. That money would be used to fund renewable energy research and provide incentives to use renewable energy. Barton and his fellow Republicans say that it will increase the cost of energy to Americans and hurt the economy. Hmmm, let’s see, the top five oil companies earned $128 Billion in profits last year. Not total sales, mind you, profits. The $1.8 Billion amounts to 1.4% of that profit or 22 day’s earnings. Considering that gasoline has gone from $1.28 a gallon in 2000 when Bush took office to $3.00 now and is forecast to increase another 33% to $4.00 a gallon in a few months I really don’t think that 1.4% is going to pose too much of a burden on us or the economy.

To put this into perspective, the five oil companies collected $40,600 in profit every second of every day last year. The House is asking them to give up $570 of that to research renewable energy. Keep in mind that this isn’t a tax increase, it is merely ceasing to give them your tax money in incentives.

In other news the Supreme Court is hearing an appeal of the Exxon Valdez case. You remember the Exxon Valdez, the Exxon tanker that ran aground off the coast of Alaska in 1989 and spilled 11 million gallons of crude oil that wiped out 1500 miles of shoreline and destroyed an entire fishing economy because the captain was drunk. Thirteen years ago a jury awarded 32,000 Alaskan fishermen $5 Billion in damages, about $156,000 each. That was reduced on appeal to $2.5 Billion. Now Exxon is arguing that they shouldn’t have to pay anything at all and it appears the court may agree. At one point Chief Justice Roberts asked, "So what can a corporation do to protect itself against punitive-damages awards such as this?" The lawyer arguing for the Alaska fishermen affected by the spill replied, "Well, it can hire fit and competent people." The question and its answer actually had the lawyers and reporters present laughing out loud.

At this point a fifth of the people affected by the oil spill have died without receiving a dime of damages from Exxon, some from spill related illnesses. Again, to put this into perspective, the $2.5 Billion would be 6% of Exxon’s profits from LAST YEAR alone. The Company has paid more in bonuses to its upper management since the accident than the original settlement of $5 Billion. Last year the CEO of Exxon received almost a half Billion as a bonus. Yet there isn’t enough to repay the people whose livelihoods were taken away and lives ruined and it seems a supreme court filled with Conservative Judges will agree with Exxon that it bears no responsibility.

http://www.washingtonpost.com/wp-dyn/content/article/2008/02/27/AR2008022702635.html Renewable energy tax bill

http://www.washingtonpost.com/wp-dyn/content/article/2008/02/27/AR2008022703207.html?hpid=topnews Exxon Valdez still in court

[liberal N proud]

1. Don't worry about the oil companies, bu$h has their back

He will veto any bill that Congress passes to penalize the oil barons

[Finishline42]

2. Interesting coverage on MSNBC and Fox

I was watching MSNBC and Fox Wednesday after it passed. On the news crawler, both said that this bill would be paid by NEW taxes on oil companies. To my surprise, Fox did point out that the oil companies in question made over $145 billion last year. The release by the Dems specifically state the bill will be paid by a REPEAL of current tax subsidies for big oil.

Bush has vowed to veto if it gets to his desk. However, most of the bill is continuation of existing programs that ended in Dec 2007.

Interesting enough, in a press conference April 14, 2005, Bush said that "with $55 oil we don't need incentives to oil and gas companies to explore. There are plenty of incentives."

http://www.whitehouse.gov/news/releases/2005/04/20050414-4.html Bush comments on oil on pg 2 of 10.