By ThinkProgress War Room, Jul 6, 2011

Reprinted from Think Progress from the Center for American Progress

GOP Tax Giveaway of the Day: Big Oil Subsidies

Oil from a ruptured ExxonMobil pipeline is coursing through the picturesque Yellowstone River as we speak, but Big Oil’s real gusher is located on Capitol Hill. Big Oil’s best friends in Congress make sure that year after year, billions of dollars in taxpayer funds flow into the coffers of the most profitable companies the world has ever known. In return, Big Oil spends millions each year to make sure that its friends keep their seats.

Here’s why it’s time to make the easiest of all choices — the one to end taxpayer-funded giveaways to Big Oil.

WHAT: Wasteful and unnecessary taxpayer subsidies for oil companies

HOW MUCH THEY WASTE: $77 BILLION from 2011-2021

WHO BENEFITS: Oil companies large and small, including the five largest oil companies who raked in $32 BILLION in profits in just the first quarter of 2011. ExxonMobil alone made nearly $11 billion in profits during the first quarter of this year.

WHO ELSE BENEFITS: Big Oil’s friends in Congress benefit from millions in campaign cash from the oil and gas industry. During the 2010 election cycle alone, the oil and gas industry pumped more than $21 MILLION into congressional campaign accounts — more than three-quarters of which went to Republicans. These same Republicans have voted repeatedly — and nearly unanimously — in favor of keeping oil subsidies over the past several months. In addition to lavish spending on direct campaign contributions, the oil and gas industry also spent a whopping $145 MILLION last year to lobby Congress.

DINNER TABLE FAST FACTS:

The average American pays an effective federal income tax rate of 20.4 percent, while ExxonMobil had an effective tax rate of just 17.6 percent over the past three years. That is of course far below the statutory corporate tax rate of 35 percent.
Even Big Oil CEOs themselves admit that they don’t need the subsidies. ConocoPhillips CEO Jim Mulva told Congress: “With respect to oil and gas exploration and production, we do not need incentives.”

IN ONE SENTENCE: Instead of ending Medicare to pay for more tax breaks for millionaires, billionaires, and huge corporations, we need to end the billions in taxpayer giveaways to Big Oil.

Full article

Since December 2009, Exxon has had six oil spills in one small area in the Southeast.

Photo credit: Sahara Reporters

The latest on July 18th follows spills previously reported on December 4, 2009 and March 24, May 1, June 20 and June 21, 2010.  Read more here from Nigerian media news site 123Next :

“We got reports of crude floating on the waters in the high seas at the weekend and verified the report before contacting the Oil Spill Detection and Response Agency (NOSDRA) and Mobil officials,”  [the Secretary of the Artisan Fishermen Association of Nigeria] said. “By Monday, the oil spill had landed on the coastline. Officials of the company and the agency, had come to see the site, our fishermen that came back from the sea had their nets and fishing gear contaminated by crude oil.”

Mr Irvin Obot, the Zonal Director of NOSDRA, confirmed that the agency had received reports of the oil spill incident at the Qua Iboe oil fields. “We got a report from the community and visited the site; there were traces of crude oil on the shoreline but we are yet to get a report from the operator of the oil fields,” he said.