June 30, 2011 2 Comments
American families will be heading to the beaches, barbecues and national parks this weekend to celebrate the birth of our nation. Unfortunately, more families will likely be sticking closer to home due to lingering high gas prices. Meanwhile Big Oil will celebrate the close of another quarter of billion-dollar profits.
Second quarter profits won’t be released for a couple of weeks, but all indicators say it’s been another banner quarter for Big Oil. They and their politician friends in Washington have continued to work together to blame everyone else for high gas prices. Even when President Obama had to release 30 million barrels from the strategic petroleum reserve last week, Congressman Doc Hastings still refused to call on Big Oil CEOs to use all the permits and lands that belong to them and are standing idle. Instead, Hastings lobbied on behalf of his Big Oil bosses to secure more government handouts.
Here are a few facts Big Oil and politicians like Hastings don’t want Americans to know when they go to gas up their cars this weekend:
- The number of active drill rigs in the country has nearly returned to pre-recession levels. Non-partisan Headwaters Economics reports that in May 2011, the number of active rigs was 1,847, less than 200 fewer rigs than were operating in September 2008, at the end of George W. Bush’s term in office.
- Big Oil is crying for more government handouts while thousands of drilling permits sit idle. Oil and gas companies haven’t developed nearly 7,200 onshore oil and gas permits where they have a green light to drill. The same goes for 57 percent of their existing onshore leases, nationally.
- Big Oil has even more permits coming. According to the Department of the Interior, onshore drilling permits are expected to increase over 40% in 2011. So how many permits will litter taxpayer land one year from now, when oil companies’ CEOs are still whining they need more acres and permits to impress shareholders?
- The U.S. is a net exporter of petroleum products. According to the Energy Information Administration, the U.S.’s petroleum imports have actually decreased over the last few years. In November and December of 2010 and in February and March of 2011, we actually exported more petroleum products than we imported. The same is true for natural gas where producers are eyeing new markets and looking to ship American natural gas to overseas. The Energy Department recently approved a new export facility in Louisiana.
- American taxpayers are paying Big Oil at the pump and on tax day. Big Oil politicians like Doc Hastings and Doug Lamborn voted in May to protect the $18 billion in corporate welfare companies like Exxon and BP will receive over the next 10 years.