Obama seeks halt to tax subsidies for oil industry

AP

Ken Thomas

WASHINGTON (AP) — President Barack Obama is calling anew onCongress to end tax subsidies for the oil and gas industry, saying the nation needs to develop alternative sources of energy in the face of rising gasoline prices.

Obama said Saturday in his weekly radio and Internet address that he expected Congress to consider in the next few weeks halting $4 billion in tax subsidies, something he hasn't been able to get through Congress throughout his presidency. He said the vote would put lawmakers on record on whether they "stand up for oil companies" or "stand up for the American people."

"They can either place their bets on a fossil fuel from the last century or they can place their bets on America's future," Obama said.

Industry officials and many Republicans in Congress have argued that cutting the tax breaks would lead to higher fuel prices, raising costs on oil companies and affecting their investments in exploration and production. The measure is considered a long shot in Congress, given that Obama couldn't end the subsidies when Democrats controlled Congress earlier in his term.

Republican presidential candidates have accused Obama of delaying drilling for oil in the Gulf of Mexico and in a national wildlife refuge in Alaska and faulted him for not advancing the Keystone XL oil pipeline from Canada to Texas Gulf Coast refineries. They have also criticized policies pursued by the Environmental Protection Agency as inhibiting energy development.

Continue reading...

Big news: We won. You won.

Source: TarSandsAction

News — admin November 10, 2011 at 4:23 pm

Um, we won. You won.

Not completely. The president didn’t outright reject the pipeline permit. My particular fantasy–that he would invite the 1253 people arrested on his doorstep in August inside the gates for a victory picnic by the vegetable garden–didn’t materialize.

But a few minutes ago the president sent the pipeline back to the State Department for a thorough re-review, which most analysts are saying will effectively kill the project. The president explicitly noted climate change, along with the pipeline route, as one of the factors that a new review would need to assess. There’s no way, with an honest review, that a pipeline that helps speed the tapping of the world’s second-largest pool of carbon can pass environmental muster.

And he has made clear that the environmental assessment won’t be carried out by cronies of the pipeline company–that it will be an expert and independent assessment. We will watch that process like hawks, making sure that it doesn’t succumb to more cronyism. Perhaps this effort will go some tiny way towards cleaning up the Washington culture of corporate dominance that came so dramatically to light here in emails and lobbyist disclosure forms.

It’s important to understand how unlikely this victory is. Six months ago, almost no one outside the pipeline route even knew about Keystone. One month ago, a secret poll of “energy insiders” by the National Journal found that “virtually all” expected easy approval of the pipeline by year’s end. As late as last week the CBC reported that Transcanada was moving huge quantities of pipe across the border and seizing land by eminent domain, certain that its permit would be granted. A done deal has come spectacularly undone.

The American people spoke loudly about climate change and the president responded. There have been few even partial victories about global warming in recent years so that makes this an important day.

Continue reading...