Senator Charles Schumer (D-N.Y.) says it is Christmas in July for big oil companies thanks to their record profits. Schumer says he is not shocked by the profits but is shocked about how they are spending it. Schumer says that big oil companies are using their profits to buy back their stocks to increase share prices. (0:44)
At a press conference on oil companies’ profits, Senator Charles Schumer (D-N.Y.) says that big oil companies have not delivered anything to anyone despite their record profits. Schumer says that big oil companies form the most selfish and more hypocritical group of companies. Schumer addes that Exxon spends more money on its chief executive officer than it does on research. (0:42)
Presumptive Republican Presidential Nominee Senator John McCain’s presidential campaign held a press conference call to discuss Presumptive Democratic Presidential Nominee Senator Barack Obama’s remarks in Flint, Michigan. Senior economic policy adviser Doug Holtz-Eakin and Republican National Committee (RNC) Victory 2008 Chair Carly Fiorina answered questions from callers on issues ranging from free trade to the Iraq war to education policies. (more…)
The overwhelming topic at today’s stakeout was energy legislation. The Senate Republican Conference after leaving their weekly policy lunch was very clear about their message: increase supply. They explained through Senate Energy Committee Ranking Member Sen. Pete Domenici (R-MN) a five point plan to reduce crude oil prices by increasing supply. The Republican legislation calls for 2,000 acres of Alaskan plain know as ANWR to be opened for drilling, remove the moratorium on off-shore natural gas drilling and reward the states that abut offshore drilling coasts for doing so, to utilize and stop filling the strategic oil reserve, dedicate money to construct more refineries, and to borrow technology from South Africa to substitute liquid coal for oil. Senator John Ensign (R-NV) said that a principal problem with the price of oil is speculation in the futures market. He said that a strong commitment by the Congress in future investment in building America’s supply would stop speculation and immediately bring oil prices down.
The Republican statements were immediately followed by statements form the Senate Democratic leadership on their energy proposals. The Democrats began with Energy Committee Chairman Sen. Jeff Bingaman (D-NM) who explained the Democratic legislation. He said that they too have provision in the bill to stop filling the strategic oil reserve as well as anti-price gouging provisions. Sen. Schumer (D-NY) said that their bill reevaluates the windfall profits tax on “Big Oil” reestablishing the definition of “windfall” and taxing those profits at 25 percent. Sen. Byron Dorgan (D-ND) said that the Democratic legislation also attempts to regulate margins in the futures market as a solution to the “orgy of speculation” over oil prices. Majority leader Reid said that they are going to “try and take a whack” at “Big Oil” in their bill.
At the CWA Conference, Senator Hillary Clinton (D-NY) says when she says solutions, she says, she will rebuild the middle class, and will end 55 billion dollars in tax breaks for oil companies, drug companies, insurance companies, and Wall Street, and will give that money back to hard working middle class families instead. You will get more help with student loans, health care for all, and millions of jobs that cannot be sent overseas because they will be created right here. I will cut middle class taxes, she says, by at least 100 billion dollars a year, and I will let taxes increase on people earning more than $250,000 a year. They have had their run, it’s time we shifted our priorities in the tax code. (:50)
Shell Oil President John Hofmeister says that increases in oil prices are not caused by the actions of oil companies, but by increasing demand and other factors.
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Stephen Simon, senior vice president of ExxonMobil, discusses the oil company’s investment plans and says that its tax bill has exceeded its earnings.
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