Hearing the pleads from Americans, the House last Thursday approved a measure H.R.5386 that pressures companies to re-negotiate more than 1,000 leases for drilling in the Gulf of Mexico.
Currently, these leases represent a $65 billion dollars in give-aways to oil and gas companies experiencing record breaking windfall profits. To give the government bargaining power, the bill also prohibit the Interior Department from awarding any new leases to companies that refuse to revisit their leases industry is itself divided on the issue. Some of the bigger companies, like Exxon Mobil, have already declared that they see no need for incentives in today's environment of high prices.
However, Minnesota's Congressman John Kline, sided with Oil & Gas Companies now swimming in a sea of record-breaking profits, voted against the amendment (H.R.5386). While consumers and taxpayers are being pumped dry by record high gas prices, John Kline wants to continue giving them tax breaks on royalties!
In 2005, the world's biggest oil companies reported a combined $111 billion in profits:
- ExxonMobil - $36.1 billion - for 43 percent
- Royal Dutch Shell - $25.3 billion - for 37 percent
- BP -$22.3 billion - for 30 percent
- ConocoPhillips - $13.52 billion - for 66 percent
- Chevron Texaco - $14.1 billion - for 6 percent
Recent reports indicate that as a result of loosened royalty requirements, including a wide variety of provisions in last year's energy bill, oil and gas companies will receive a giant federal hand-out at a cost of nearly $7 billion.
By his vote John Kline has essentially said:
Last week John Kline voted against legislation aimed at saving taxpayers billions of dollars now slated for large companies already earning record profits. With the national deficit at a record high increasing an average of $1.78 billion per day, Kline votes against collecting historically established royalties that cost all Americans. Kline continues to vote against the interests of working families and for big oil and gas companies. Ever wonder why? Had enough yet?