Bush’s Failed Energy Policies Lead To Record Profits For Oil Companies

Today, ExxonMobil announced that “its third-quarter earnings rose to $10.49 billion, the second-largest quarterly profit ever recorded by a publicly traded U.S. company.” Royal Dutch Shell also “beat all forecasts with a 21 percent rise in underlying third-quarter profit.” These earnings reports come “as high crude prices this year have fueled record profits in the oil industry” which has triggered “an outcry from consumers who were being asked to pay about $3 a gallon for gasoline in early August.” [AP, 10/26/06; Reuters, 10/26/06]

“These record profits for oil companies while Americans still face sky-high gas prices, is one more example of the consequences of President Bush’s decision to let his friends in big oil write our nation’s energy policy,” said Democratic National Committee Communications Director Karen Finney. “While oil companies have received tax breaks, the pocketbooks of America's working families have been squeezed by a combination of rising energy costs and declining incomes. Americans are ready for a new direction. Democrats remain committed to reducing our dependency on foreign oil, and creating a robust domestic industry for alternative energy sources that will create jobs."

Under Bush, America's Dependence on Foreign Oil Has Increased. During the 2000 presidential campaign, Bush criticized the Clinton Administration for allowing U.S. imports on foreign oil to reach 56% of U.S. oil consumption. Five years after President Bush announced his energy plan, U.S. imports of foreign oil have risen to 65% of U.S. consumption. [House Government Reform Committee, Democratic Staff, 3/16/06]

American Families Are Spending Record Amounts for Energy - Nearly $2,000 More Per Family Than Five Years Ago. Five years ago, the average American family spent $3,300 on gasoline, home heating, and electricity. This year, the average American family will spend over $5,100 on gasoline, home heating, and electricity. This is an increase of nearly $2,000 per family. The indirect costs of higher energy prices in the form of higher prices for consumer goods and services are likely to cost families another $1,400 per year. [House Government Reform Committee, Democratic Staff, 3/16/06]

Energy Task Force Headed By Officials With Ties To Energy Industry. Bush stacked the energy task force with a number of officials with ties to the oil and energy industry. The head of the task force was Vice President Dick Cheney, who was the former chief executive officer of Halliburton, the oil services giant. Members include Commerce Secretary Don Evans, a former executive at Texas oil company Tom Brown; Energy Secretary Spencer Abraham who received almost half a million dollars in contributions from the oil and energy industry during his 2000 campaign for the U.S. Senate in Michigan; Interior Secretary Gale Norton, who received nearly $28,570 from the oil and gas companies for her 1996 run for U.S. Senate, the second largest total from any industry. [www.crp.org; New York Times, 1/30/01]