xcel
12-28-2006, 04:59 PM
Industry could take a hit if new House leaders push plan to reallocate money for renewables, conservation. (http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20061227/BIZ/612270310/1148/AUTO01)
http://www.cleanmpg.com/photos/data/501/Off-shore_Oil_Derrick.jpgH. Josef Hebert - AP - Dec. 27, 2006
WASHINGTON -- House Democrats in the first weeks of the new Congress plan to establish a dedicated fund to promote renewable energy and conservation, using money from oil companies.
That's only one legislative hit the oil industry is expected to take next year as a Congress run by Democrats is likely to show little sympathy to the cash-rich, high-profile business.
Whether the issue is rolling back tax breaks -- some approved by Congress only 18 months ago -- pushing for more use of ethanol and other biofuels or investigating shortfalls in royalty payments to the government, oil industry lobbyists will spend most of their time playing defense.
Details of a renewable fuels fund have yet to be worked out.
Nonetheless, it's one of the initiatives the House will take up during its first 100 hours in session in January, according to aides to Speaker-elect Nancy Pelosi.
"What we'll do is roll back the subsidies to Big Oil and use the resources to invest in a reserve for research in alternative energy," Pelosi, a California Democrat, recently told reporters.
The oil issue likely to be first up in January concerns the ability of the government to collect royalties many lawmakers believe have been unfairly avoided by oil and gas companies drilling in the Gulf of Mexico.
"There will be a new cop on the beat to force every big oil company that is currently lining its pockets with taxpayer dollars to come back to the negotiating table," declared Rep. Edward Markey, D-Mass.
At the top of the hit list is a tax break that was aimed at promoting U.S. manufacturing but has provided a windfall for the oil industry as well.
Democrats also are targeting other benefits for refinery investments and for expenditures for certain types of oil and gas exploration. Those measures are estimated to cost the government about $1.3 billion over 10 years.
Executives of the largest oil companies have said they don't need those tax breaks. Lobbyists, however, are ready to fight another proposal to raise taxes on inventories, which could cost oil firms billions of dollars.
http://www.cleanmpg.com/photos/data/501/Off-shore_Oil_Derrick.jpgH. Josef Hebert - AP - Dec. 27, 2006
WASHINGTON -- House Democrats in the first weeks of the new Congress plan to establish a dedicated fund to promote renewable energy and conservation, using money from oil companies.
That's only one legislative hit the oil industry is expected to take next year as a Congress run by Democrats is likely to show little sympathy to the cash-rich, high-profile business.
Whether the issue is rolling back tax breaks -- some approved by Congress only 18 months ago -- pushing for more use of ethanol and other biofuels or investigating shortfalls in royalty payments to the government, oil industry lobbyists will spend most of their time playing defense.
Details of a renewable fuels fund have yet to be worked out.
Nonetheless, it's one of the initiatives the House will take up during its first 100 hours in session in January, according to aides to Speaker-elect Nancy Pelosi.
"What we'll do is roll back the subsidies to Big Oil and use the resources to invest in a reserve for research in alternative energy," Pelosi, a California Democrat, recently told reporters.
The oil issue likely to be first up in January concerns the ability of the government to collect royalties many lawmakers believe have been unfairly avoided by oil and gas companies drilling in the Gulf of Mexico.
"There will be a new cop on the beat to force every big oil company that is currently lining its pockets with taxpayer dollars to come back to the negotiating table," declared Rep. Edward Markey, D-Mass.
At the top of the hit list is a tax break that was aimed at promoting U.S. manufacturing but has provided a windfall for the oil industry as well.
Democrats also are targeting other benefits for refinery investments and for expenditures for certain types of oil and gas exploration. Those measures are estimated to cost the government about $1.3 billion over 10 years.
Executives of the largest oil companies have said they don't need those tax breaks. Lobbyists, however, are ready to fight another proposal to raise taxes on inventories, which could cost oil firms billions of dollars.