Robert Menendez

Menendez: Massive Big Oil Profits Make Clear that Big Oil Subsidies Must Go

Taxpayer-funded subsidies continue to pad record profits of Big 5 oil companies, rather than go toward deficit reduction

July 29, 2011

Washington – This week the Big 5 oil companies announced massive second quarter profits, leading US Senator Robert Menendez (D-NJ) to again call for an end to taxpayer-funded subsidies to these companies in any debt deal.

“American taxpayers pad the enormous profits of the Big 5 oil companies to the tune of $2.1 billion a year.  The Big 5  oil companies should not continue enjoying these subsidies while working class families and seniors are expected to make sacrifices to balance the budget,” said Menendez.  “If Speaker Boehner needs votes from House Democrats to ensure we avoid default, then perhaps it is time for him to embrace an end to needless subsidies for the Big 5 oil companies.  We must not put the sole burden of righting our fiscal ship on those who can least afford it.”

Menendez is the author of the Close Big Oil Tax Loopholes Act of 2011, which received a bipartisan majority vote in the Senate, but failed because of a Republican filibuster.  As the chart below shows, the Big 5 oil companies are on track to haul in $144 billion in profits in  2011.  Without subsidies their projected profits would still be $142 billion.

Enormous Profits for the Big 5, Again: