WASHINGTON, D.C.– In the wake of a new report from the Department of Energy indicating that gasoline prices this summer are projected to rise to an average of $2.62 per gallon this summer – 25 cents higher than the same time period last year - Representative Edward J. Markey (D-MA) called for a re-examination of Republican energy policies and urged passage of the “Royalty Relief for American Consumers Act of 2006” to revoke billions of dollars in royalty relief handouts to big energy companies, and H.R. 3762, a bill requiring meaningful increases in fuel economy standards for cars and light trucks. 

“With oil and gas prices at these levels, it is absurd to be handing over tax breaks and royalty-free drilling rights to oil companies who are essentially tipping consumers upside-down and shaking money out of their pockets,” said Rep. Markey, a senior Democrat on the House Energy and Commerce Committee.

“With gas prices soaring as we approach the summer driving season, we are starting to reap the results of the Republican Party’s misguided energy policy,” Rep. Markey continued. “We have a President who says we are addicted to oil, but pursues policies that do nothing to cure the disease.

“It is time to suspend all so-called ‘royalty-relief’ for oil companies to drill for oil and natural gas on public lands.  Offering financial ‘incentives’ to the oil companies for drilling at today’s high prices is like subsidizing a fish to swim.  It should be halted.

“It’s also time for us to begin making some significant increases in motor vehicle fuel economy.   The President’s fuel economy regulations for SUVs are inadequate at best – and the enormous tax subsidies the Administration allows gas guzzlers to receive simply continue to encourage their purchase.”

ExxonMobil’s revenue reached $340 billion last year, a 25.5 percent increase over 2004, and had $36.1 billion in profits, the most by any U.S. company in history.  Earlier today, the Department of Energy released its ”Short Term Energy and Summer Fuels Energy Outlook” for 2006, which forecasts that “World oil market conditions, growth in U.S. demand, and ongoing implementation of domestic fuel quality requirements are expected to keep consumer prices for motor fuels and other petroleum products high in 2006.” This forecast provides further indication that the Administration’s energy policies have failed to address the impact of high energy prices on consumers.

Rep. Markey has introduced H.R. 4749, the “Royalty Relief for American Consumers Act of 2006,” legislation that would prohibit royalty relief on any future oil and gas leases when the price of oil and gas is high, calls for a renegotiation of current leases that are giving royalty relief, and prohibits the purchasing of new leases by those companies that refuse to renegotiate. Oil and gas companies pay a fraction of the value of the oil and gas produced on federal land as a royalty to the federal government.  In addition, Rep. Markey is also the author of H.R 3762, a bill that would raise the average fuel economy standards for both cars and light trucks to 33 miles per gallon by model year 2016, a step that experts believe is easily achievable and which would save 10% of the gasoline we currently use to drive.

For more information on Rep. Markey’s work on energy policy check out: http://markey.house.gov/

Copy of H.R. 4749 - Royalty Relief Copy of H.R. 4749 - Ending Royalty Relief (31.10 KB)
Copy of H.R. 3762 - Increasing Fuel Economy Standards Copy of H.R. 3762 - Increasing Fuel Economy Standards (31.10 KB)

 

FOR IMMEDIATE RELEASE
April 11, 2006

 

CONTACT: Tara McGuiness
Jeff Duncan
202.225.2836