Driven By Gulf Spill, Menendez Continues Fight Against Big Oil

After repeated failed attempts to force the Senate to vote on a bill that would hold oil companies more liable for damages caused by spills, Sen. Bob Menendez (D-N.J.) today announced a bill aimed at recouping more tax dollars from such corporations.

The Close Big Oil Tax Loopholes Act, which Menendez is co-sponsoring with Sens. Bill Nelson (D-Fla.) and Jeff Merkley (D-Ore.), would rescind a number of tax breaks that large oil companies currently receive; breaks Menendez believes are unfair.

“The flow of revenues to oil companies is like the gusher at the bottom of the Gulf of Mexico; heavy and constant,” he said in a statement Monday. “There is no reason for these corporations to shortchange the American taxpayer.”

Yet, while Menendez says the bill would generate roughly $20 billion over the next decade, the intent of the legislation appears to simply be to punish the oil industry for profiting. Of the bill’s eight provisions, only one -- a proposal to place an excise tax on oil and gas produced on the Outer Continental Shelf (OCS) -- seems rooted in consumer protection.

Menendez, however, said the bill is necessary to prevent oil companies from continuing to gauge their customers.

“They certainly aren’t using the extra money they get from exploiting these loopholes to help bring down the price of gas for our families.”

McCain has chosen his running mate: Exxon Mobil, says Gov. O'Malley

Gov. Martin O'Malley kicked off his new campaign at press conference in the Democratic National Committee (DNC) headquarters. His campaign, called "Exxon-McCain '08," mockingly refers to big oil companies as Senator John McCain's (R-Az.) running mate in the 2008 presidential election, and O'Malley plans to take the campaign through cities across America.

"All of this is a bit of a tongue-in-cheek way of underscoring a very, very serious problem that is facing all of us as Americans," O'Malley said.

At the front of the room sat an oversized check made out to McCain. The amount of money on the check, $2 million, symbolized how much money McCain has received from oil companies during the election season. According to a DNC document from the conference, McCain has received almost $55,000 in contributions from Exxon employees and Exxon's political action committee.

Outside of the DNC headquarters, two members of the Republican National Committee held up their own mock-check made out to Barack Obama for $2.8 billion, which is an attack on Obama's 2005 vote on an energy bill that gave tax breaks to oil companies.

O'Malley said Barack Obama is going to use oil company funds to give people emergency energy rebates at $1000 per family and $500 per individual. McCain cannot do this because of his interest in oil companies, O'Malley said.

When the floor opened up for questions, one man asked O'Malley if the Democratic Party has received any money from oil companies. Brad Woodhouse, Communications Director for the DNC, said he did not know the answer, but would get back to the man about it.

Oil companies outrage Democratic Senators

Senate Majority Leader Harry Reid (D-Nev.) held a pen-and-pad briefing on the news of oil companies making record profits. Senator Chuck Schumer (D-NY) said the oil companies are using their record profits to buy back their stock and make it more expensive, rather than make gas more affordable for American consumers. Schumer said the oil companies' record profits could do so much to lower gas prices, such as give $2000 to every American family. Senator Patty Murray (D-Wash.) said oil companies are trying to increase their profits while consumers suffer.

Senator Dick Durbin (D-Ill.) said the Republicans' agenda is the oil companies' agenda. Their push for drilling in Alaska will give the companies more acres to siphon profit from. Reid said the Republicans' persistent obstruction of all Democratic efforts to support renewable energy is "mind-boggling."