Washington, DC– Today, Representatives DeGette, Markey and Solis blasted President George W. Bush and the Republican Congress for six years of failure on energy policy.

“President Bush’s announcement today is nothing more than a cheap political stunt that will do nothing to lower gas prices or solve our nation’s energy crisis,” said Representative Diana DeGette (D-CO).  “Our nation needs a real energy policy that develops new sources of energy, increases efficiency and promotes conservation.”

Since taking office President Bush and the Republican Congress have done nothing to limit U.S. reliance on foreign oil or help consumers at the pump.  The Republican highlights on energy have been:

  • Vice President Cheney formed a secret task force of energy industry officials to draft the Administration’s energy policy.
  • Promoted drilling in the Arctic Refuge, ignoring government findings that the refuge holds less than a 6-month supply of oil.
  • Passed an energy bill that contained billions of dollars in giveaways to the energy industry, but offered nothing to help consumers at the pump.
  • Introduced a second energy bill, the GAS Act, which attempted to exempt refineries from environmental reviews, but offered nothing to help consumers at the pump.
  • Giving $20 to 80 billion over 25 years in royalty relief to the oil and gas industry.

“The Republican leadership has not allowed hearings or legislative action on my legislation to end these taxpayer subsidized handouts to oil and gas companies,” said Representative Ed Markey (D-MA). “How high will these record oil and gas prices have to climb before this Republican Congress decides to put energy consumers ahead of energy companies?”

Democrats have real solutions to the nation’s growing energy crisis including; 

  • Federal Response to Energy Emergencies Act (H.R. 3936), which provides the Federal Trade Commission with the explicit authority to investigate and punish those who artificially inflate the price of energy. 
  • Royalty Relief for American Consumers Act of 2006, (H.R. 4749) prohibits 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.
  • Energy Consumer Relief Act of 2005 (H.R. 4479) would roll back billions in tax subsidies to big oil and gas companies and make that funding available to bring down heating costs under LIHEAP, as well as tax credits for farms and as grants for small businesses.  

“President Bush’s energy policy has consistently failed working families and small businesses across America while rewarding the oil and gas industry. Today’s announcement is no different,” said Congresswoman Hilda L. Solis (D-CA). “Bush says he will increase investment in renewable energy, yet the budget he submitted to Congress tells a different story. He says oil dependency is a matter of national security, yet under his watch America’s dependency has increased by 10 percent. He says he wants to protect consumers, yet nothing in his plan will ensure that they’re not ripped off by wealthy oil companies. America’s consumers deserve real action, not rhetoric.”

# # #

FACT SHEET
The Republican History of Failure on Energy

Arctic National Wildlife Refuge
The President claims there are more than 30 years of secure oil and gas supplies in ANWR.  Yet according to the U.S. Geological Survey there is less than a 6-month supply of oil in ANWR and that oil could not be brought to market in for 7-12 years.

Energy Bill
After pushing for nearly 5 years, President Bush signed his energy bill in July of 2005.  Unfortunately, his bill did nothing to reduce our dependence on foreign oil or help consumers at the pump.  It did however give more than $12 billion in tax breaks and subsidies to the energy industry.  Some of the highlights are:

  • $2.175 billion for Oil and Gas (Title III)
  • $5.23 billion for Coal (Title IV)
  • $3.366 billion for Nuclear (Title VI) 

(For more, see http://www.taxpayer.net/energy/pdf/hr6finalanalysis.pdf)

The bill also contained several provisions to significantly weaken existing public health and environmental laws including;

  • Safe Drinking Water Act
  • Clean Water Act
  • Outer Continental Shelf Moratorium
  • National Environmental Policy Act

GAS ACT - Gasoline for America’s Security Act of 2005
In September of 2005 Rep. Barton released his new energy bill which is focused heavily on refinery production.  Among the bill’s provisions:

  • Refinery Construction – “Streamline” permitting, allowing DOE to override EPA in permitting decisions, and action on government involvement in building of refineries.
  • Increase pipeline construction
  • Allow Outer Continental Shelf revenue sharing
  • Delaying the ethanol mandate and reduce the number of boutique fuels.

U.S. Has Royalty Plan to Give Windfall to Oil Companies
February 14, 2006
New York Times

The Refinery Industry
Republicans in Congress and some in the oil industry have claimed that environmental regulations have restricted the building of new refineries in this country.  Yet in the mid-1990’s, oil companies intentionally shut down refineries specifically to drive up profits. 

* Internal Mobil Memo: Discusses how the company manipulated and in some cases lobbied for the strict California regulations governing refineries in order to keep smaller refiner Powerine from reopening a California refinery.  The memo concludes, “Needless to say, we would all like to see Powerline stay down.  Full court press is warranted in this case….  If they do start up, depending on circumstances, might be worth buying out their production and marketing ourselves. Especially if they start to market below our incremental cost of production….”
http://www.consumerwatchdog.org/energy/fs/5105.pdf

* Internal Chevron Memo: “A senior energy analyst at the recent API convention warned that if the US petroleum industry doesn't reduce its refining capacity it will never see any substantial increase in refinery margins.” It then discussed how major refiners were closing down their refineries.
http://www.consumerwatchdog.org/energy/fs/5103.pdf

* Internal Texaco Memo: Describes how the industry’s main concern in the mid-1990s was a “surplus of refining capacity, and the surplus gasoline production capacity.” This caused supply to exceed demand year-round leading to lower profits. The memo highlights that “significant events need to occur to assist in reducing supplies and/or increasing the demand for gasoline.”
http://www.consumerwatchdog.org/energy/fs/5104.pdf

 

FOR IMMEDIATE RELEASE
April 25, 2006

 

CONTACT: Tara McGuinness (Markey)
202.225.2836

Brandon MacGillis (DeGette)
202.225.3041

Sonia Melendez (Solis)
202.225.5464