GAS PRICE CRISIS CONTINUES TO BURN MN WORKING FAMILIES

04/26/2006

by Brian Melendez
MN DFL Chairman

ST. PAUL (4/25/06) – Today, President Bush decided to halt deposits into the Strategic Petroleum Reserve and offered strong rhetoric about getting tough on big oil companies. This comes after his comments this weekend, where he said Americans were in for a “tough summer” and claimed he could do nothing to dampen spiraling gas prices as summer approaches. According to the latest Lundberg survey of 7,000 gas stations, “retail gas prices across the country jumped an average of nearly a quarter per gallon in the past two weeks.” [AP, 4/24/06]

Here in Minnesota, retail gasoline prices for regular-grade gasoline have risen to $2.839 from $2.600 over a period of just two weeks, according to the U.S. Department of Energy. Gas prices have also risen by $0.80 from one year ago and by $1.28 since President Bush took office in 2001.

“Tough talk is great, but what we need is action. And this administration’s actions of the previous five years offer little hope that their deeds will live to their words when it comes to the big oil companies that are holding Minnesotans and Americans hostage at the gas pump,” Minnesota DFL Chair Brian Melendez said. “Instead of standing up for Minnesota’s working families and reining in out-of-control gas prices, Bush Republicans like Representative Mark Kennedy have established long records of devotion to Big Oil. They have given a free pass to companies like Exxon Mobil who are charging record prices as they reap record profits.

“Representative Kennedy and the rest of the Bush Republicans should join Democrats in putting average families first and reining in the special interests.

“The DFL Party has a bold vision for keeping America safe and secure, a vision that includes reducing our dependence on foreign oil, creating good jobs for all Americans and establishing a more effective health care system that works for everyone. No Minnesotan should have to choose between a tank of gas and a bag of groceries.”

KENNEDY HAS BEEN IN THE BACK POCKET OF BIG OIL

While in Congress, Mark Kennedy has been in the back pocket of Big Oil. Kennedy has taken thousands in PAC contributions from Big Oil, including Exxon Mobil. Kennedy has voted for energy bills that did nothing to lower gas prices and were full of handouts to Big Oil. The oil companies don’t need any extra help; they are literally making billions while the average price of gas in Minnesota continues to rise.

MARK KENNEDY HAS TAKEN $62,500 IN CONTRIBUTIONS FROM BIG OIL - INCLUDING $14,000 FROM EXXON MOBIL

Kennedy Has Received At Least $62,500 From The Oil and Gas Industry – Including $14,000 From Exxon Mobil. According to newly released campaign finance data, since 1999, Mark Kennedy has accepted at least $62,500 in campaign contributions from the oil and gas industry, including $14,000 from Exxon Mobil’s political action committee. [Center for Responsive Politics, accessed online 4/23/06; Political Money Line, accessed online 4/23/06; Federal Election Commission, Mark Kennedy ’06, 1st Quarter 2006 Report, received by the Secretary of the Senate 4/18/06]

KENNEDY HAS VOTED FOR BILLIONS IN SPECIAL INTEREST GIVEAWAYS TO BIG OIL COMPANIES

2005: Kennedy Voted For $8 Billion Energy Bill That Did Nothing To Lower Gas Prices – And Gave Billions In Handouts To The Oil And Gas Industry. In 2005, Kennedy voted for an energy bill that provides $8 billion in tax breaks to energy producers and billions of dollars more in direct federal aid, while doing nothing to lower gas prices and giving short shrift to energy efficiency and renewable fuels. The bill allowed drilling in the Arctic National Wildlife Refuge and contained legal liability protection for producers of the gas additive, MTBE, which has fowled drinking water sources nationwide. Also included was $2 billion in royalty relief to the oil and gas industry over 10 years for research on ways to recover more oil and gas from the Gulf of Mexico. [HR 6, Vote #132, 4/21/05; New York Times, 4/22/05; Sacramento Bee, 4/22/05; Boston Globe, 4/22/05]

2003: Kennedy Voted For The Bush Energy Bill Which The Pioneer Press Said Was “Bloated With Giveaways to Special Interests.” In 2003, Kennedy voted for the Bush Energy Bill which the Pioneer Press Editorial board said was “bloated with giveaways to special interests.” Kennedy voted for the initial House version of the energy bill, which according to the Associated Press, “provides $ 18.7 billion in tax breaks, mostly aimed at the oil and gas, nuclear and coal industries.” The Pioneer Press editorial board described the House-passed Energy Bill as “bloated with giveaways to special interests and starved of essentials that could produce the biggest returns in the shortest amount of time… Instead of a visionary plan, Congress seems content to lavish subsidies on extraction and nuclear industries, to brush aside significant fuel economy improvements and to put less into conservation and renewables than make sense for the future.” The bill also included allowing drilling in Arctic National Wildlife Refuge. [HR 6, Vote #145, 4/11/03; AP, 4/11/03; Pioneer Press, editorial, 5/20/03]

BIG OIL COMPANIES ARE MAKING BILLIONS OFF HIGH GAS PRICES

Exxon Mobil Corp. Reported Earning $10.7 Billion In the Fourth Quarter Of 2006 – Ending The Most Profitable Year In US Corporate History. In 2005, The Boston Globe reported, “Exxon Mobil Corp., the world’s largest publicly traded oil company, reported a quarterly profit of $10.7 billion yesterday, rounding out the most profitable year in US corporate history.” [Boston Globe, 12/31/05]

· 2005: Exxon Mobil Earned $36.13 Billion – More Than The Economies Of Many Countries Ranked By The World Bank. According to The Boston Globe, “The results pushed up Exxon’s profit for the year to $36.13 billion bigger than the economies of 125 of the 184 countries ranked by the World Bank. Profit rose 42 percent from 2004, largely due to soaring oil and gas prices.” [Boston Globe, 12/31/05]

· Exxon’s Net Income Rose 27 Percent Over Fourth Quarter 2004. Exxon Mobil’s “fourth-quarter net income rose 27 percent to $10.71 billion, or $1.71 a share, from $8.42 billion, or $1.30 a share, a year ago. Revenue was shy of $100 billion [,]” the Boston Globe reported. [Boston Globe, 12/31/05]

Boston Globe: Rising Crude Oil Prices Have Meant A “Profit Bonanza” for Big Oil. According to the Boston Globe, crude oil prices “have been rising for four years, handing Big Oil a profit bonanza.” [Boston Globe, 12/31/05]

2006: “Skyrocketing Energy Prices” Sent Exxon Mobil Corp To The Top Of The Forbes 500 List. According to the Pittsburg Tribune Review, “Skyrocketing energy prices propelled Exxon Mobil Corp. to the top of the 2006 Fortune 500 list [.]” [Pittsburg Tribune Review, 4/4/06]

2005: Exxon Mobil’s Retiring CEO Received $400 Million In Compensation Last Year. According to Roll Call, “Exxon Mobil CEO Lee Raymond received roughly $400 million in compensation in his last year at the company [.]” [Roll Call, 4/24/06]

PRICES IN MINNESOTA HAVE RISEN 24 CENTS IN THE LAST TWO WEEKS

Gas Prices In Minnesota Have Risen 24 Cents In The Past Two Weeks – And By 80 Cents In The Last Year. Gas prices in Minnesota have risen by 24 cents in the last two weeks. According to the US Department of Energy, Retail Gasoline Prices, Regular Grade in Minnesota have risen to $2.839 from $2.600 over a period of just two weeks. Gas prices have also risen by 80 cents from one year ago. [EIA, U.S. Retail Gasoline Prices, as of 4/24/06

http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html