At a time when Americans are seeing gas prices continue to rise, the Obama administration’s decision to cut the 4 billion in oil subsidies is about fairness, not gas prices, so says the White House:
They cite record profits of the big oil companies, but the problem is that the “4 billion” in subsidies doesn’t go to the big oil companies. In fact it hasn’t since the 1970s when it was repealed. It goes to the independent companies who actually drill most of the wells in the US. So is it really about fairness or is that just a ruse to hurt the oil drilling industry? Knowing this president it’s absolutely the latter:
I’m a supporter of the President’s. I’m concerned that he’s going to lose credibility on this oil and gas issue because he’s not telling the truth entirely. What he is saying is that you need to eliminate four billion dollars worth of tax breaks for major oil companies because major oil companies have obscene profits. The problem with this is that one of the big tax breaks that he’s citing -intangible drilling costs- excuse me -percentage depletion- was repealed by Congress in 1975, 36 years ago, as it affects major oil companies. The only ones that get percentage depletion anymore are domestic independents who drill most of the wells in the United States and employ four million people.
“You have to remember that President Obama – and I’m going to say this with all due respect to the office of the Presidency – he doesn’t know what he’s doing when it comes to energy. He does not know, as I just pointed out, that the four billion dollars that he thinks he’s gonna stick it to Exxon, BP, Conaco-Phillips that no, it’s going to be the independent producers, the explorers that we want out there creating jobs that are going to be hit with an end of subsidy. So we really have to take a hard look at that.”
If you still want more, listen to Martin Frost talk to Mark Levin about this very issue:
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