ed markey

API's Jack Gerard Refuses to Answer Activists on Vote 4 Energy Advertising Costs

Referees call foul on Big Oil Lies

We'll get to the encounter with Mr. Gerard below, but first, some context:

Gas prices! Everyone's talking about them, including our government at a Congressional hearing today held by the House of Representatives Energy & Power Subcommittee featuring, among others, Mr. Jack Gerard of the American Petroleum Institute. As API's president, Jack Gerard is Big Oil's top lobbyist, and today he was doing what companies like Exxon and Shell pay him the big bucks to do - justify government subsidies and giveaways to Big Oil.
 
Also attending the hearing: referees raising the red flags on misleading statements and calling attention to the $5.97 million that oil companies have given to current members of the Energy & Power subcommittee since 1999 (data provided by the Center for Responsive politics through DirtyEnergyMoney).

This particular meeting of the subcommittee exposed some of the more blatant absurdities that API and their oil funded buddies in Congress like to propagate. Take gas prices - Jack Gerard likes to say "we need more American energy," by which he means we need to open up every square inch of soil and water to oil and gas extraction. His argument is that gas prices would be lower if we sacrificed our land and investment capital to Big Oil's drill.

Luckily Congressman Edward Markey was there to point out how ridiculous it is to assume anything extracted by multinational oil corporations is "American." Once multinationals like BP and Exxon get oil from American sources, it becomes their oil, to sell on the open world market for the best price. The fact is, letting companies drill for oil on American soil won't result in any drop in price at the gas pump because the amount of oil American sources would produce is miniscule in comparison to the amount consumed globally. Allowing companies like Shell to drill off Alaskan shores or in other high-risk ways wouldn't save American consumers a dime, but would add many millions of dollars to Shell's bottom line. Gerard's refusal to acknowledge this belies a truth about API that he doesn't want the public to know - the American Petroleum Institute does not want to lower gas prices for Americans, API wants to increase the political power and profits of their member organizations.

That's why Rep. Markey suggested some more appropriate labels for Gerard's group than the American Petroleum Institute; like the "World Petroleum Institute" due to multinational members like BP and Shell who will sell oil from America to the highest bidder,  the "Wall Street Petroleum Institute" because Gerard and API refuse to acknowledge the role speculation plays in driving up oil prices, or the "Caymen Islands Institute", because of API's dedicated defense of tax breaks, subsidies, and other loopholes which keep oil corporations from paying their fair share.

If Gerard meant it when he said "The more transparent the discussion, the better off we'll be," he would take one of Rep. Markey's suggestions. That way the American public would know that API's attacks blaming the president for high gas prices, repeated lies about Keystone XL's affect on gas prices, or blocking rules to protect air and water from the dangers of fracking are all part of an extensive dirty energy PR campaign.
 
Short of re-branding his organization, Jack could at least be transparent about the amount of oil industry money he is using to influence elections through the Vote 4 Energy ad campaign. The Vote 4 Energy campaign has blanketed cable television and much of Washington DC in misleading pro-drilling, pro-fracking propaganda in an attempt to further Big Oil's political agenda by misleading voters. API wants you to vote for ExxonMobil and Shell instead of yourself.

In spite of Mr. Gerard's lip service to "transparent discussion," when we repeatedly asked him how much oil money he is using to influence the upcoming election with Vote 4 Energy propaganda, he didn't want to be part of the discussion. If Mr. Gerard is so proud of the ad campaign, why won't he talk about how much of API's $200 million budget is going toward Vote 4 Energy?

 

And if you haven't seen our own Vote 4 Energy commercial mocking API's prized public relations campaign, compare both Vote 4 Energy ads yourself.

Gerard photo credit: Houston Chronicle

Polluter Congress Ignores $53 billion in Offshore Drilling Handouts During Spending Cuts

In a move that exposes the repeated and predictable habit of Congressional polluter allies, House Republicans have ignored a $53 billion handout over the next 25 years to oil companies that are not required to pay royalties when obtaining leases for offshore drilling in the Gulf of Mexico. This year alone, according to House Representative Ed Markey (D-MA), $1.5 billion in absent lease royalties will benefit oil companies seeking to expand offshore drilling.

The leases, which give oil giants access to public property for their own profit, is another slap in the face to taxpayers who have already watched their land (and for many, their fragile livelihoods) become poisoned by industry abuse and maintained by federal incompetence.  As fiscal conservatives in the U.S. House selectively look for government spending to trim, the main targets seem to be social programs instead of unncecessary billions doled out to the world's largest oil companies.  As Congress scratches the back of Big Oil, fresh reports emerge of continued devestation on the ocean floor of the Gulf of Mexico, a direct result of the BP Deepwater Horizon oil spill.

Noting the twisted irony, Rep. Markey stated, "Republicans once again sided with BP, Exxon and the oil companies, not with the American taxpayer and the poorest Americans most in need of help. This legislation focuses on just the kind of special interest loophole that should be closed before we open attacks on programs for the poorest Americans.”

This failure to save wasted taxpayer money is but a small portion of the sickening annual handouts to the oil industry through subsidies. Oil Change International explains, "Estimates of the value of US federal subsidies to the domestic oil and gas industry alone (not coal) range from 'only' $4 billion a year, to an amazing $52 billion annually.  Coal subsidies are roughly another 10 billion annually."

Through its DirtyEnergyMoney tabulation website, Oil Change International reports that the 111th House of Representatives has some powerful allies to the oil industry across party lines. From 2009-2010, thirteen House members were each awarded over $100,000 by oil companies alone:

  • Roy Blunt (R-MO) -- $269,400
  • Dan Boren (D-OK) -- $205,750
  • Chet Edwards (D-TX) -- $176,130
  • Joe Barton (R-TX) -- $150,870
  • Mike Ross (D-AR) -- $135,350
  • K. Michael Conaway (R-TX) -- $132,600
  • John Sullivan (R-OK) -- $125,800
  • John Fleming (R-LA) -- $123,550
  • John Boehner (R-OH) -- $119,400
  • Jerry Moran (R-KS) -- $113,600
  • Eric Cantor (R-VA) -- $110,600
  • Charles Boustany (R-LA) -- $109,000
  • Harry Teague (D-NM) --$100,300

Top givers to the 111th Congressional Representatives of Oil were Koch Industries ($616,513), ExxonMobil ($553,950), Chevron ($373,100) and Valero Energy ($311,250).

More information on all of these companies can be found on our PolluterWatch profiles for each company, as well as in-depth looks at their Congressional funding through DirtyEnergyMoney.com

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