Americans for Prosperity creates jobs in China

by Matt Garrington

Last week, Americans for Prosperity (AFP) wrapped up their tour to push Big Oil’s agenda under the guise of more jobs and lower energy prices in an effort to weaken protections for our air, water, public lands and oceans.

Ironically, it turns out that the AFP tour did help promote jobs … in China. Part of the free giveaways to the few who actually showed up to the “Running on Empty” tour stops, included $20 gas cards to Diamond Shamrock and small foam gas station pumps.

It turns out the toys were a made in China (see photo). Talk about a rookie campaign mistake.

The gaffe says everything about what AFP is all about … lining the pockets of their funders like the oil refinery magnates the Koch Brothers and Big Oil companies like ExxonMobil, Shell and BP… while ignoring what is actually important to western states and American families.

If AFP is going to be shilling for multinational oil companies and conservative political operatives, the least they could do is make sure the props are made in America.

The props and gifts didn’t do much for turnout. Most of the events had less than 50 people and were accompanied by an equal or greater number of opposition voices (the notable exception being the conservative stronghold of Colorado Springs).

And the $20 Diamond Shamrock gas cards seems like a paltry consolation prize to the $67.4 billion in profits oil and gas companies have made in the first half of 2011 thanks to the high prices Americans have been paying them at the pump.

Even Diamond Shamrock’s parent company, Valero, continued its climb away from junk bond rating status with $744 million in Quarter 2 profits, a 28 percent increase over last year.

The facts behind AFP’s tour were also a little thin. They blamed President Obama for a doubling in gas prices. The problem is that it’s just not true. The Denver Post’s political blogger, Lynn Bartels, pointed out that gas prices topped $4 per gallon under George Bush in May 2008. The Denver Post piece also covered ProgressNow’s counter effort which pointed to the tradeoff Republicans such as Reps. Doug Lamborn and Scott Tipton have asked Americans to make between funding Social Security and Medicare and Big Oil tax breaks.

When it comes down to it, the “Running On Empty” tour is about more giveaways to oil and gas companies – only this time it is in the form of the air we breathe, the water we drink, and the treasured landscape of the West.

Credit should be given where credit is deserved, however. Jeff Crank of AFP did tell Coloradans that he “couldn’t be more against subsidies to Big Oil companies.” (Video courtesy of Colorado Eyes on Congress.) It’s just too bad that they are spending their money from the Koch Brothers supporting the dismantling of air, water, and land protections instead of ending $15 billion a year in special tax breaks to Big Oil which they purport to support.

Connecting the dots between gas industry tycoons and the NAT GAS Act requires ink by the barrel load.

A recent investigation by DeSmogBlog and PRWatch exposes just who stands to benefit from the NAT GAS Act and the expensive tactics being used to ensure it flies through congress. The most recent tactic is a public relations campaign by Chesapeake Energy, which included the gas giant’s “Declaration of Energy Independence.”

Chesapeake Energy’s CEO, Aubrey McClendon, is joined by T. Boone Pickens, when it comes to who will benefit from NAT GAS Act. The legislation calls for the government to cut checks to any company that transfers its fleet of vehicles to methane gas and to have citizens shell out their taxes so that methane gas fueling stations can be constructed throughout the country.

According to the DeSmog report, Chesapeake, “will pour $150 million into Clean Energy Fuels Corporation (CEF). Energy tycoon and hedge fund manager T. Boone Pickens sits on CEF’s Board of Directors and owns a 41 percent stake, according to the company’s March, 2011 10-Q filing. That money will go toward funding methane gas fueling stations along federal highways spanning the country.

The timing of Chesapeake’s launch of the “Declaration of Energy Dependence” is no coincidence. The NAT GAS Act is at a critical stage. It currently has 183 co-sponsors, but it is also being considered at a time when the United States is trying to reduce handouts from America’s taxpayers. But with the help a public relations army that even includes a methane gas funded television network, McClendon and Pickens are betting they can buy another handout for the fossil fuel industry.

UPDATED: Big Oil announces skyrocketing profits, keeps politicians on the dole for big tax breaks

Denver, CO – This week, as the top five oil companies announce their first quarter profits, the Checks and Balances Project conducted an analysis of the money oil and gas corporations spent in 2010 on campaign contributions and Congressional lobbyists. The numbers tell the story that oil companies’ armies of lobbyists and contributing power give them a louder voice than American families. For example, the House of Representatives voted in March to protect Big Oil’s multi-billion dollar tax breaks and government subsidies, in spite of polling that shows Americans want them eliminated.

Company[1]	2010 Lobbying Expenditures	2010 Political Contributions (Dem)	2010 Political Contributions (GOP)
Exxon Mobil	$12,450,000	$109,500	$928,950
Chevron	$12,890,000	$122,000	$473,000
Shell	$10,370,000	N/A	N/A
BP	$7,335,000	$31,500	$35,000
ConocoPhillips	$19,626,382	$90,000	$299,000
Total	$62,671,382	$321,500	$1,700,950

According to Public Campaign, the Political Action Committees for BP, Chevron, ConocoPhillips and ExxonMobil donated $285,500 to elected officials and political parties in the first quarter of 2011.

“These profit reports show Big Oil is making big bucks from high gas prices at the pump,” said Checks and Balances Deputy Director Matt Garrington. “Big Oil spent $63 million lobbying Congress and $2 million in campaign contributions last year so politicians would hand out $4 billion every year in taxpayer-funded subsidies.”

Public pressure is starting to sway GOP members of Congress. Speaker John Boehner, Denny Rehberg, Sam Graves, Mick Mulvaney, and Paul Ryan are all on record, stating the need to end oil and gas subsidies.

On the other hand, oil and gas money recipients, including Natural Resources Committee Chairman Doc Hastings (R-WA-04) and Subcommittee Chairman Doug Lamborn (R-CO-05), recently voted against ending  “royalty relief” for offshore drilling companies. Hastings and Lamborn are also leading the charge to open up even more Western lands drilling despite the fact that Big Oil and Gas has failed to develop 57 percent of public lands leased for drilling.

“If Congress is serious about addressing high gas prices, throwing taxpayer money and opening up public lands to drilling speculation won’t work,” said Garrington.

The US Department of Energy reports $3.88 is the average price of a gallon of gas. This week, the “Big Five” oil companies – Exxon Mobil, Chevron, Royal Dutch Shell, ConocoPhillips and BP – reported an average 35.6% increase in profits over first quarter 2010.

Company	Q1 2010 Profits	Q1 2011 Profits	Increase in Profits
Exxon Mobil	$6,300,000,000	$10,700,000,000	69.8%
Shell	$4,800,000,000	$6,300,000,000	31.3%
BP	$5,600,000,000	$5,480,000,000	-2.1%
ConocoPhillips	$2,100,000,000	$3,000,000,000	42.9%
Chevron	$4,550,000,000	$6,200,000,000	36.3%
Total	$23,350,000,000	$31,680,000,000	35.6%

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[1] http://www.opensecrets.org

Will Boehner End Oil and Gas Industry Welfare?

The price at the pump is hovering around $4/gallon, while oil and gas companies are reporting billions in first quarter profits. So wasn’t a complete shock when Speaker John Boehner said, earlier this week, that Congress should look at ending the fossil fuel industry’s multi-billion dollar tax breaks.

After all, how does Congress plan to explain to American families facing escalating energy prices that BP – responsible for the worst spill in American history – made $7.1 billion in profits in the first three months of 2011, but still needs taxpayer dollars to stay in business.

Some politicians are trying to say that ending the decade-old tax breaks will only increase the price of fuel. But without their taxpayer-funded safety net, oil and gas companies would have to compete more rigorously for consumers, which is likely to drive down prices.

The fact is that American families can’t afford to keep propping up Exxon, Chevron, Shell and other oil and gas companies. The question is whether Speaker Boehner sees that.

Watch the video of Boehner’s interview.

If Speaker Boehner agrees the time has come to end oil and gas industry welfare, it’s a drastic change in course for the House Republican conference. Representative Paul Ryan’s 2012 budget, submitted less than two weeks ago, keeps intact $40 billion in oil subsidies.

Weeks before, in early March, House Republicans voted unanimously against ending tens of billions in taxpayer subsidies to the five largest oil companies.

See what Montana Congressman Dennis Rehberg has to say.

So what’s the answer Mr. Speaker? Are you and your colleagues finally changing your minds about billion dollar tax breaks for an industry making billions in profits?

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.

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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

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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

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