Oil companies have a rich history of U.S. subsidies

Source: Los Angeles Times

Some say the Gulf of Mexico catastrophe can be linked to Congress' policy of oil-friendly tax breaks and financial benefits.
By Kim Geiger and Tom Hamburger, Tribune Washington Bureau. May 25, 2010. Reporting from Washington

It was close to 2 a.m. when Rep. Edward J. Markey (D-Mass.) and others on a House-Senate conference committee saw just how much clout the oil industry had when it came to winning special tax breaks and other financial benefits from Congress. At issue was the 2005 Energy Policy Act — the largest energy bill in years. The committee chairman, Rep. Joe L. Barton (R-Texas), a friend of the industry, had saved some big issues for the end: billions of dollars in tax and royalty relief to encourage drilling for oil and gas in the Gulf of Mexico and other offshore areas. There was even a $50-million annual earmark to support technical research for the industry.

At the time, drilling was already proceeding at a brisk pace, and industry profits were setting records. "With all the money they are making," Markey said to his top energy aide, who recalled the scene, "why does the government need to subsidize their work and their research?"
That point of view did not prevail. The bleary-eyed lawmakers wanted no part of Markey's amendments. The bill was eventually passed in both houses with bipartisan support. Notably, then-Sen. Barack Obama of Illinois voted in favor.

Today, Markey and other critics complain that these policies have cost the U.S. Treasury tens of billions in lost revenue, and led to a reckless search for oil in fragile environments like the deep floor of the Gulf of Mexico. He and others say the unfolding catastrophe at the Deepwater Horizon rig, which exploded April 20 in a disaster that killed 11, can be directly linked to oil-friendly legislation over the last two decades.

Read more: http://www.latimes.com/news/nationworld/nation/la-na-oil-spill-subsidies-20100525,0,1705123.story

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Oil companies hire lobbyists to pump up both supply and demand. This story has to do with supply. On the demand side, they have fought for years against fuel-economy standards.

http://www.latimes.com/news/opinion/editorials/la-ed-0525-mileage-20100526,0,5918870.story

What's good for Big Oil is not good for the rest of us.

" Notably, then-Sen. Barack Obama of Illinois voted in favor."

some things never change.........

such as solar generated electric power are such demand side manipulations.

to raise the liability of oil companies for these type of spills. I think they Democrats should saturate the states of LA, Ala, FlA and all Gulf States with the fact that the REPUBLICANS ARE IN COHOOTS WITH THE OIL COMPANIES and don't want them to have to pay for cleaning up the mess. They (the republicans) want the US to pick up the cost.

cap and do not actually have to cast a vote on the issue. The oil co's own both sides of the isle, don't let yourself be fooled.

To get (re)elected, senators and representatives have to sell votes to lobbyists. Only the whores prosper in this system.