Oil Companies Take Hit from Congress
Posted by jon8105 on January 9, 2007
Oil companies are expected to be hit hard by Congress, which is now under Democratic majority. According to Congress they have a plan to reduce the amount of royalties and taxes that Oil companies are saving money on and use that money as a fund for renewable energy and conservation.
The reason oil companies are protected from paying royalties is because of a government error during the writing of the 1998 to 1999 leases. So Congress is trying to rework the lease and if that fails they could ban oil companies from bidding on leases in the future.
Another hit oil companies are going to take will happen when Congress reduces the amount of tax breaks they receive. Tax breaks (gives breaks to companies with products produced in the United States) were put in place to help out the manufacturing companies, but the oil companies found a way to also be eligible for them and is saving millions every year.
I am glad that Congress is stepping up to do something about these greedy oil companies and trying to find alternative means for power. The best part, in my opinion, is that Congress is working on passing a law to keep the oil companies from price gouging again! I will be glad when that law is passed! more info >>
Mick said
You would rather have Big Brother/Big Sis deciding where to invest oil profits? Why not just nationalize the oil companies like communists do?
You trust politicians and lawyers with how to decrease our need for foreign oil?
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jon8105 said
As long as they use the money to research alternative energy sources and restrict the oil companies from price gouging, then yes, I would support Congress in doing so.
Mick said
So you trust politicians more than engineers? You must support Hugh Chavez and buy your gas from Citgo.
jon8105 said
No, because I am an engineer! However, Congress is who we as Americans have elected to run this country and so they are the ones who will have to put restrictions on these oil companies. Engineers come up with the new technology but if they could get federally funded (Which my job is) then an alternative means for energy could be available sooner! I understand what you are saying and appreciate your comments, I just know that it will take Congress (at least the ones that do not have their hands in the oil companies’ pockets) to make way for the new technology.
Mick said
Congress can help, but it is the private oil companies that come up with the innovation. Name one thing Big Brother/Big Sis politicos invented?
jon8105 said
I am not saying that politicians have invented anything. And the innovation that we need for alternative energy sources will not come from private oil companies (at least not now), because they are making tons of money off of their oil. Comgress can then take the money they get from reducing the tax breaks on oil companies (which is on government property) and fund other companies to come up with these new alternative energy sources.
Mick said
You know better than that, I hope. Democrat Progressives take over free enterprise in the U.S. by passing confiscatory regulations. At the tipping point, oil companies will no longer be profitable enough to innovate, then they sell to a private equity firm and they cut to the bone.
Keep the politicians out of the oil business.
Do you support Hugo Chavez’s Citgo oil?
jon8105 said
I do not support anyones oil. Politicians are going to always be involved in the oil business in one form or another because they also make tons of money. What I do want is for the oil companies to no longer price gouge (And then make record profits that year while Americans are paying ridiculous prices for gas!!). I also want alternative means for energy to be further researched and not held back by oil companies (and the politicians who has their hands in the oil business also).
Richard Bromley, USA said
Our oil companies are indeed socialized. Clearly and without a doubt. “We the people”, have given them the most sophisticated satellites for searching for oil (do you get any ground scan data from your money?). ” We the people”, open public lands and even give oil companies 10 BILLION dollars to pump the stuff out (Would you like to have 10 BILLION to pump out some oil?). The big oil companies are not operating off chance. Very little of that in play for them. Your the one financing their dry holes and you don’t get a thank you letter much less a share of stock. Oil is good business; we can’t pump it out of the ground without their help. Alternative energy?? No no…That would lead to completion beyond the control of these large companies. It would be like Pot; If it where legal, everyone and their brother would simply grow their own and no one would make a buck from it.