Special Interest Anniversary
One year ago, President Bush signed the Republican energy bill, giving $8 billion in tax breaks to energy companies. Since then, the American people continue to struggle just to fill up their gas tanks, as gas prices are up 65 percent. Energy companies, who have given generously to the Bush White House and Republicans in Congress, have realized record earnings. This year, three of the largest oil companies reported nearly $30 billion in income while their CEOs made millions.
One year after passing the Republican energy plan, America also is no closer to becoming energy independent. With the recent news about BP's closure of a key Alaskan oilfield due to infrastructure problems, it is clear that Republican oversight of our critical resources is severely lacking. Once again, Republicans in Washington are favoring their special interest friends over the American consumer.
"Despite signing an energy bill a year ago today that President Bush and his rubber-stamp Republican Congress claimed would help the American consumer, gas prices are still through the roof and big oil companies continue to rake in record profits," said Democratic National Committee Press Secretary Stacie Paxton. "The Republican energy bill was another kick in the gut to American consumers that was filled with $8 billion in tax giveaways for the energy industry, but did nothing to address escalating gas prices. It's really no surprise that President Bush, his Administration and his rubber-stamp Republican Congress would once again favor their special interest friends and campaign contributors over the interests of the American consumer. The fact that the oil industry helped write the Republican energy bill and the White House still refuses to reveal who was part of the Bush-Cheney Energy Task Force says it all. Democrats have a plan to make America energy independent by 2020 that includes investment in alternative fuels and energy conservation."
Record Prices...
Since Bush's 2nd Inauguration, Gas Prices Have Risen $1.20 a 65 Percent Increase. According the Energy Information Administration, the price of regular, unleaded, gasoline has risen by $1.20, or 65 percent, since Bush's 2nd inauguration. On January 17, 2005, just before Bush's second inauguration the average price of gasoline was $1.84 a gallon. As of August 7, 2006, the average price of gasoline is $3.04 per gallon. [Energy Information Administration, www.eia.doe.gov]
Since Bush's 1st Inauguration, Gas Prices Have Doubled. According the Energy Information Administration, the price of regular, unleaded, gasoline has risen by $1.58, or 108 percent, since Bush's 1st inauguration. On January 15, 2001 just before Bush's first inauguration the average price of gasoline was $1.46 a gallon. As of August 7, 2006, the average price of gasoline is $3.04 per gallon. [Energy Information Administration, www.eia.doe.gov]
...And Record Profits
ExxonMobil, ChevronTexaco and ConocoPhillips Reported Net Income of $27 Billion for First Half of 2006. ExxonMobil reported a net income of $18.76 billion for the first half of 2006, with a second quarter earning of $10.36 billion. ConocoPhillips reported second-quarter net income of $5.186 billion, bringing its net income for the first six months to $8.48 billion. ChevronTexaco reported a second quarter net income of $4.35 billion, bringing its six month total to $8.35 billion. [ConocoPhillips Press Release, 7/26/06; ExxonMobil Press Release, 7/27/06; Chevron Texaco Press Release, 7/28/06]
2005 Profits for ExxonMobil, Royal Dutch Shell, Chevron Texaco, and ConocoPhillips Broke Records Across All Industries -Not Just the Oil Industry. According to the individual annual reports, ExxonMobil broke the U.S. record, for the second-consecutive year, by reporting a 2005 profit of $36.1 billion. Royal Dutch Shell earned $25.31 billion. Chevron Texaco reported $14.1 billion in profits, while ConocoPhillips reported profits of $13.5 billion. Exxon's 2005 revenues were a company record: $370.7 billion. Exxon remains the largest U.S. corporation by stock market value. [Exxon Mobil website, accessed 8/8/06; Royal Dutch Shell Annual Review; Chevron Texaco website, accessed 8/8/06; ConocoPhillips Press Release, 1/25/06; Associated Press, 4/13/05]
...And Record CEO Salaries
ConocoPhillips CEO Received Nearly $31 Million in Bonuses and Stock Options. According to Forbes, ConocoPhillips Chief Executive Officer James J. Mulva’s 2005 salary was $1.50 million. He received $6.8 million in bonuses, and $23.04 million in stock options and other gains. [Forbes, accessed 8/8/06]
ChevronTexaco CEO Received Nearly $9 Million in Bonuses and Stock Options. According to Forbes, ChevronTexaco Corp. Chief Executive David O'Reilly's salary was $8.80 million as soaring oil and fuel prices boosted profit at the second-biggest U.S. oil company. O'Reilly's salary rose to $1.55 million; his bonus was $3. 5 million; and he received options valued at $3.75 million. [Forbes, accessed 8/8/06]
ExxonMobil CEO Received Nearly $4 Million in Bonuses and Stock Options. According to Forbes, ExxonMobil's CEO Rex. W. Tillerson was compensated $4.12 million in 2005. He received $960,000 as salary, $1 million as a bonus and $2.16 million in stock options and other gains. [Forbes, accessed 8/8/06]
The GOP's Special-Interest Energy Bill that Will Not Reduce Gas Prices...
Bush's Own Energy Information Administration Found the Bush Plan Wouldn't Impact Prices. A February 2004 analysis by the Energy Information Administration of the 2003 compromise energy bill - nearly identical to legislation passed by the Republican Congress and signed by Bush-found the price of oil and the level of imports would be "negligible" with or without that energy bill, all the way through 2025. According to the New York Times, Bush "advisers caution that the [Bush energy] plan would do little to address the escalating gasoline prices." [Investor's Business Daily, 3/23/05; EIA, http://tonto.eia.doe.gov/oog/info/twip/twip.asp; New York Times, 5/10/01]
Former Tom DeLay Aide Admits Energy Bill Will Not Solve Gas Price Problem; Only Gives Appearance of Doing Something. According to the Los Angeles Times, "Politically, it doesn't matter if such provisions deal with the long term, said [Stuart Roy, Republican strategist and former aide to House Majority Leader Tom DeLay.] "The most important thing for policy makers in the current environment of relatively high gas prices and the approaching summer travel months is action."" [LA Times, 4/16/05]
...Because Republicans Are in Oil Companies' Pockets
Republican Party: Oil and Gas Industry Contributed Nearly $67 Million to Republicans Since 2000. The oil and gas industry have contributed over $66.7 million to the RNC, NRCC, NSCC, and Republican candidates since the 2000 election cycle. The oil and gas industry contributed more than $20 million to Republicans in the 2004 cycle alone-four times more than oil money donated to Democrats. In 2004, Exxon alone gave 831941 to Republicans. [Center for Responsive Politics]
House Energy Chairman And Close DeLay Associate, Joe Barton, Received $1.8 Million in Contributions from Energy Industry. Rep. Joe Barton (R-TX) is chair of the Energy and Commerce Committee, which recently passed the energy bill. According to the Washington Post, "If Barton gets his way and succeeds in passing this year's energy bill, there is little doubt that the oil and gas, coal, and nuclear industries will have much to celebrate...Barton and President Bush...have dipped heavily into the same rich pool of campaign contributions from corporate and trade associations, according to a review of campaign finance and lobbying records. Since 1997, oil, gas, electricity, nuclear, coal and chemical companies have contributed $1.84 million to Barton, more than to any other House member." [WP, 4/14/05]
Barton Owes Chairmanship to Energy Industry Lobbyists. The Washington Post reported, "In his quest for the chairmanship...A network of former Barton staff members-turned-lobbyists-including Jeffery M. MacKinnon (clients: Reliant Energy, Philip Morris, MCI and at least 36 others), Stephen Sayle (American Chemical Council, AT&T and 19 others) and Stephen Waguespack (Duke Energy, Ford Motor Co. and eight others)-worked the crucial corporate and trade association community on Barton's behalf." [Washington Post, 4/14/05]
Energy Industry Enjoyed Special Access to Cheney Energy Task Force, Meeting With Task Force Officials 118 Times. Although details of the energy task force are not available, some general information on its proceedings has become public. Particularly notable are reports of the energy industry's special involvement in its deliberations. Nine days before President Bush's inauguration, energy industry lobbyists gathered in the American Petroleum Institute's offices to make a "wish list" for the Bush energy plan. The list was forwarded to the Bush energy transition team, and eventually to the energy task force. Task force officials met with 118 energy groups, and only 13 environmental groups, five academics and one consumer group. [Newsweek, 5/10/01; NYT, 5/10/01; 5/20/01; USA Today, 5/14/01; ABC News, World News Tonight, 5/22/01; WP, 5/17/01]
Enron's Ken Lay Gave Cheney a Memo that was Integrated Into Energy Plan. During a meeting between then-Enron CEO Kenneth Lay and Cheney in April 2001, Lay gave Cheney a memo that outlined some of Enron's positions on energy, which were similar to elements of Cheney's energy plan. Included in the Enron memo were notes on price caps negative impact on energy markets. "The administration should reject any attempt to re-regulate wholesale power markets by adopting price caps or returning to archaic methods of determining the cost-base of wholesale power," the memo said. "Events in California and in other parts of the country demonstrated that the benefits of competition have yet to be realized and have not yet reached consumers," the memo said. Cheney's energy plan advocated against price caps and calls for a bail out for energy consumers in California. [San Francisco Chronicle, 1/30/02 emphasis added]
...And Bush Is in the Oil Companies' Pockets
Energy Bill Rewards Bush Fundraisers. According to the Washington Post, the 2004 Republican energy bill, nearly identical to the current one, provided billions of dollars in benefits to companies run by at least 22 executives and their spouses who were either "Pioneers" or "Rangers," as well as to the clients of at least 15 lobbyists and their spouses who have achieved similar status as fundraisers. The energy bill provides industry tax breaks worth $23.5 billion over 10 years aimed at increasing domestic oil and gas production, and $5.4 billion in subsidies and loan guarantees. [Washington Post, 11/24/05]
In 2004, 13 Pioneers and Ranger Were From The Oil and Gas Industry. 13 members of the oil and gas industry were either Pioneers, who pledged to raise $100,000 for the Bush Campaign or Rangers, who raised $200,000 for the Bush campaign in 2004. [www.whitehouseforsale.org; Washington Post, 4/14/05]
In 2000 Election Cycle, 66 of Bush's Pioneers Were Members of the Energy and Natural Resources Industry. According to Texans for Public Justice, 66 of Bush's Pioneers in 2000-who each raised at least $100,000 for Bush-were from the energy and natural resources industry. Five of those Pioneers, including Edison Electric Institute President Thomas Kuhn, were named to Bush's Energy Transition team. [www.whitehouseforsale.org; Texans for Public Justice]
The Oil and Gas Industry Is One of Bush's Largest Career Donors. The oil and gas industry ranked 12th among career contributions to George W. Bush. In 2000, the oil and gas industry ranked 8th in the top industry contributions. In 2004, the oil and gas industry ranked 15th in the top industry contributions. [Center for Responsive Politics]
