Dems to challenge Big Oil

From today's NY Times:

In an opening slap at the industry, House Democrats tried, but narrowly failed, to pass a measure on Friday that would have pressured oil companies to give up a legal loophole that is expected to allow them to avoid as much as $10 billion in royalties over the next five years.

Though the measure was defeated, 205 to 207, Democratic leaders said they would resurrect it when they took control in January. Many Republicans conceded that the bill would almost certainly pass. But Democrats said they did not intend to stop there. Party leaders hope to repeal several billion dollars in tax breaks to oil companies, including a special deduction for “manufacturing” that was extended to drilling companies two years ago.

snip

“This is a warning to oil and gas companies,” said Representative Rahm Emanuel, Democrat of Illinois and chairman of the House Democratic Caucus. “When you get a Democratic Congress, you are going to get a cop on the beat.”

The dwindling political influence of the oil industry was apparent on Friday, even as House Republicans handed it a modest victory by passing a bill opening up new areas in the Gulf of Mexico for drilling.

much more at link below:





http://www.nytimes.com/2006/12/09/business/09royalty.html?ei=5094&en=3250ba65c7ec11f8&hp=&ex=1165726800&adxnnl=1&partner=homepage&adxnnlx=1165663334-DfUIxfcZLatgFYEzeD/wNA

And many will take it.

If so, it's ridiculous. We should get 20% of the oil money on the land we own just like any Texas rancher does.

Can't wait for the pressure on Big Oil to increase. This is a very popular issue with people given gas prices. The capstone investigation though would be an examination of collusion between oil companies, and even the formation at the UN level of a global cartel law that would prevent OPEC and others from colluding to controlling supply. I would also like to see them look into the way the price of oil is set on the market; I have reason to believe, given the small fraction of oil that is traded, compared to the aggregate amount, that this system is rigged.