A risky proposal against Big Oil: Accountability 101

Author: Jared Fallon

It seems that increasing oil revenues is the only reliable component of the US corporate world we can depend on. 2008 has brought some of the most challenging oil prices America has ever endured and yet oil companies continually make increasingly greater profits. This will probably come as no surprise, but needs to be stated: the second quarter of this year has again proved itself to be the most profitable in history for Big Oil. The leader of the Western six pack - Exxon Mobil - raked in an excess of $1.7 billion, surpassing its own records to yet again have the title as the highest-ever quarterly profits earner for an American firm. Bravo Exxon Mobile – none of us saw it coming.

For the most part, there are not many pending bills on the legislation front that attempt to provide additional regulation for oil companies and/or oil price increases. The central bill of interest does not seem too likely to pass although it would be fun to watch. The bill’s only advocate so far is the sponsor – Janice D. Schakowsy (D-IL) – a risky position for a lone politician to take against such an influence-packed group of monoliths. Her bill – H.R.6653 - aims “To provide energy price relief and hold oil companies and other entities accountable for their actions with regard to high energy prices,” H.R.6653 proposes a 4 part strategy that denies oil companies tax deductions, conforms tax treatment for foreign tax credits, imposes a windfall profits tax on major oil companies, and establishes an Energy Independence and Security Trust Fund. In addition Schakowsy wants to amend the Sherman Act to prevent foreign states to act with each other to limit the production of oil, set energy prices, or take any actions in restraining free trade of energy sources. This bill will be interesting to watch (and Schakowsky’s future endorsements for that matter) – follow this link to find the most up-to-date information on this and other pieces of pending legislation available on the web.