Opinion: It’s Time to Revoke Big Oil’s Allowance

A column by U.S. Senator Claire McCaskill

(498 words)



The American people have made it clear that we must do something to address our mounting national debt. We have some very tough decisions ahead of us in terms of cutting back here in Washington, but I believe that we should start with the stuff that should be easy to agree on.



Last week, I introduced a bill to end taxpayer subsidies to the most profitable corporations in the history of the planet.



Every year, billions of our tax dollars are given away to the five of the largest oil companies in the United States, companies that made $36 billion in profits just in the last three months. It’s a practice that must stop. In these tough economic times, that money should be used to pay down our deficit and get our fiscal house in order.



My bill would have taken away $2 billion in annual taxpayer-provided subsidies to the five largest companies and applied every dime to reducing the deficit. It is the essence of low-hanging fruit. This is the kind of idea that should receive unanimous support in the Senate. It's common sense.



Unfortunately not everyone in Washington agrees. The measure failed on the Senate floor with a vote of 52-48. I’m disappointed that too many of my colleagues decided to stand with Big Oil instead of taking this small step towards reducing our deficit.



If we cannot end subsidies to five of the wealthiest corporations in the world, then I don’t know how Congress will make the truly difficult decisions about how to reduce the deficit.



The big oil companies don’t need the money. Over the last ten years, they've raked in nearly $1 trillion – that’s $1,000,000,000,000 -- in profits. They've broken their own records for the most profitable quarter in economic history several times over. Passing this legislation would have meant $123 billion in profits this year, instead of $125 billion.



There’s nothing in this bill that would have removed incentives for these companies to explore, drill, and produce more oil. And ConocoPhillips CEO Jim Mulva has said, and I quote, “With respect to oil and gas exploration and production, we do not need incentives.”



Domestic oil production has been up in 2009 and 2010 and families are still experiencing record prices at the pump. In fact, recent reports have indicated that U.S. refiners are cutting back on U.S. gasoline stockpiles in order to artificially keep prices high and inflate their bottom line. Since the beginning of 2011 U.S. refiners have seen over a ninety percent increase in their refining profits.



Big oil companies are not hurting, but Missourians are. While you pay record prices at the pump, you shouldn't be forced to also provide subsidies to an industry that clearly doesn’t need them.



As we address our national deficit this year, there are going to be a lot of tough decisions about how to close gaps wherever we can. Taxpayer-funded handouts to oil companies should be one of the easiest cuts we make.