As Americans feel pain at pump, Big Oil wins big

For immediate release
April 26, 2011

Media Contact:
Matt Garrington, Deputy Director
matthew@checksandbalancesproject.org
(303) 454-3376

Washington, DC – This week, Big Oil will announce record profits at a time when Americans are suffering at the gas pump. In the first quarter of 2011, ExxonMobil is expected to post a gain of 50 percent while a 33 percent bump is expected for both Chevron Corp. and ConocoPhillips.

“While Americans are feeling the pain of high gas prices, Big Oil is to announce record profits for the first quarter of 2011,” said Matt Garrington, Deputy Director of the Checks and Balances Project.

“These dirty energy corporations skirt their obligations and get billions in taxpayer funded subsidies, while they gouge Americans at the pump. The industry continues to demonstrate an abusive of the federal tax system. Speaker Boehner should stand by his words and make sure Big Oil pays their ‘fair share” of taxes,” continued Garrington.

According to Politico, the announcement schedule is:

Wednesday, 2 a.m.: BP
Wednesday, 2:30 p.m.: ConocoPhillips
Thursday, 5 a.m.: Royal Dutch Shell
Thursday, 8 a.m.: ExxonMobil
Friday, 11 a.m.: Chevron

These announcements come after Halliburton reported last week that its first quarter revenue set a company record at $5.3 billion, which is up from $3.8 billion in the first quarter of 2010. First quarter profits were up 148 percent from $206 million in 2010 to $511 million in 2011.

Halliburton cited increased U.S. onshore drilling activity as the reason for its success, with Chairman Dave Lesar stating, “North America delivered strong performance as margins progressed due to increased activity while Eastern Hemisphere operating income was significantly impacted by geopolitical events in North Africa, delays in Iraq, and typical seasonality.”

A simple analysis by the Checks and Balances Project of 10 years’ worth of industry profits and pump prices demonstrate that oil companies profit the greatest when Americans pay the most at the pump.

# # #

The Checks and Balances Project’s mission is to investigate how and why decisions are made that affect taxpayers and consumers. The project is focused on holding government officials, lobbyists, and corporate management accountable for their actions related to energy, government spending, public health, and the environment.

THE BALANCE SHEET: APRIL 26, 2011

Our weekly update to unravel the industry and political spin around the energy debate


IN CASE YOU MISSED IT

WE’RE IN THE WRONG LINE OF WORK

While Americans are suffering from pain at the pump, Halliburton reported last week that its first quarter revenue set a company record at $5.3 billion, which is up from $3.8 billion in the first quarter of 2010. First quarter profits were up 148 percent from $206 million in 2010 to $511 million in 2011.

Halliburton cited increased U.S. onshore drilling activity as the reason for its success, with Chairman Dave Lesar stating, “North America delivered strong performance as margins progressed due to increased activity while Eastern Hemisphere operating income was significantly impacted by geopolitical events in North Africa, delays in Iraq, and typical seasonality.”

ANOTHER EARTH DAY, ANOTHER SPILL

A Chesapeake Energy Corp. well blowout occurred in Northern Pennsylvania Tuesday, spilling up to tens of thousands of gallons of toxic, chemical-laden fluid onto area residential land and contaminating a tributary of the Susquehanna River. The incident may be the most serious fracking accident in the history of the commonwealth’s Marcellus Shale development. DeSmogBlog has the story.

WORD GAMES

Last week, Colorado Oil and Gas Conservation Commission Director David Neslin testified before a Senate committee looking into hydraulic fracturing’s less than spotless track record on safety. Contrary to his testimony, where he asserted that groundwater contamination from fracking has never occurred, Neslin told The Checks and Balances Project immediately following the hearing that oil and gas production in Colorado had indeed led to contamination. Most drilling is fracking, so to say fracking does not cause groundwater contamination is disingenuous at best. Watch how Neslin and industry representatives use rhetorical tactics to excuse corporate responsibility for toxic fracking fluid casing leaks and pit overflows.

PRICE, NOT POLICY, DETERMINES HEALTH OF WESTERN ENERGY DEVELOPMENT

Headwater Economics on Tuesday released a report analyzing the relative success of states and communities to maximize energy development’s benefits and minimize its costs. The report concludes with a series of policy recommendations for communities trying to achieve that goal. In five Rocky Mountain, energy-producing states – Colorado, Montana, New Mexico, Utah, and Wyoming – Headwater Economics discovered that common sense standards and protections did not hamper energy production. Price was the ultimate factor in determining whether energy development occurs. Read the full report.

DID WE LEARN OUR LESSON FROM THE GULF OIL SPILL DISASTER?

Checks and Balances Deputy Director Matt Garrington asks that question in his guest-commentary piece for Sunday’s Denver Post. Give it a read and let us know what you think.


DID YOU KNOW?

OIL & GAS NY LOBBY FUNDS UP 400 PERCENT IN TWO YEARS
In New York State last year, the oil and gas industry spent $1.6 million on lobbying to fight common sense protections from oil & gas fracking impacts, up from $400,000 in 2008.


COMING UP THIS WEEK

BLM TO REVIEW COMMERCIAL OIL SHALE LEASING PROGRAM

The Department of the Interior Bureau of Land Management will host public hearings in three Western states – Colorado, Utah and Wyoming – beginning today to gather input from residents and experts as they review the federal oil shale leasing program. Find out more about the hearings.

Now that gas prices are hovering around $4 per gallon, risky schemes like oil shale are back in the national debate. Oil shale is pure science fiction, as companies have failed to produce commercial oil from oil shale despite a hundred years of experimentation.

Chairman Doc Hastings (R-WA), Subcommittee Chairman Lamborn (R-CO), Rep. Scott Tipton (R-CO) and Rep. Rob Bishop (R-UT) have all been throwing about this fantastic tale. Compare what politicians are saying to those in the oil and gas industry, who believe viable oil shale is a decade out or more.

Furthermore, oil shale today is being conflated with shale gas and shale oil, giving the false impression that oil shale is ready for prime time. This has led to inaccurate rhetoric, and it has the potential to mislead investors, policymakers and other Americans interested in real energy solutions.

Compare what politicians are saying to those in the oil and gas industry, who believe viable oil shale is a decade out or more: Oil Shale Quotes – Congress v Industry


CONTACT US

Twitter: @checksandbals | Email: tips@checksandbalances.org