WASHINGTON, D.C.– In the wake of new reports of record-high gas prices and surging profits for energy companies, Representatives Edward J. Markey (D-MA), Rosa L. DeLauro (D-CT) and Diana DeGette (D-CO) 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. 

“At a time when oil and gas prices are going through the roof and ExxonMobil has replaced Wal-Mart at the top of the Fortune 500, we must ensure that taxpayers are not giving handouts at a time of windfall energy company profits,” said Rep. Markey, a senior Democrat on the House Energy and Commerce Committee. “Subsizing an oil company to drill is like subsidizing a fish to swim. Just today, the Minerals Management Service at the Department of the Interior has announced a new round of lease sales containing unneeded subsidies for drilling.  Americans across the country are paying to increase the profits of the country’s richest companies at a time of record high prices, yet House Republicans refuse to even hold a hearing to reverse their failed and wasteful policy.  These powerful companies owe the American people money – they need to pay their bills like everyone else.  American’s deserve elected officials who will stand up for their concerns, not just the concerns of big companies.

“How much longer?” questioned Rep. DeLauro.  “How much longer will families and businesses have to stretch their budgets to the limit just to fill their gas tanks while oil companies enjoy record profits?  There is a serious disparity going on in this country, one that the Bush administration and Congressional Republicans have an obligation to investigate.  With oil demand increasing around the globe and no end in sight to these high prices, we must have a serious debate about how to lower gas prices for families and small businesses, and how to reduce our dependence on foreign oil.  All that Americans are getting from the Bush administration and Congressional Republicans is just lip service.”

“The only thing going up faster than gas prices are oil company profits,” said Rep. Diana DeGette. “To most Americans taking back the billions of tax payer dollars Congress gave oil companies last year would be common sense. Sadly common sense seems to be in short supply in the Republican leadership. ExxonMobil made more than $1000 every minute last year; they don’t need more hand outs from Congress.”

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.

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, call for a renegotiation of current leases that are giving royalty relief, and prohibit 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. Rep. DeGette and Rep. DeLauro are both co-sponsors of this bill. 

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

For info on Rep. DeLauro’s work please visit http://www.house.gov/delauro/

For info on Rep. DeGette’s work please visit http://www.house.gov/degette