Washington - Today, oil company ConocoPhillips reported a surge in profits in the second-quarter of this year, marking the first of the three major U.S. oil company earnings reports expected out over the next week. Conoco reported a staggering net income of $5.44 billion in the second-quarter, up from $301 million in the second quarter last year. High oil prices are a main reason for the jump in profit.

Despite these astronomical profits and high gas prices, there is evidence that oil companies are spending their profits primarily on stock buybacks, rather than increased exploration or innovation. Just yesterday, The Associated Press reported that ConocoPhillips spent $2.5 billion on stock buybacks between April and June, which is nine times more than what it spent on exploration.

U.S. Senator Robert Menendez (D-NJ), author of the COAST Act to permanently ban drilling in the Outer Continental Shelf, has repeatedly pointed out that the Republican plan to open up the OCS for drilling will do nothing for gas prices but will help oil companies' stock prices. In addition, he is a lead co-sponsor of Sen. Russ Feingold's (D-WI) use-it-or-lose-it legislation to spur oil companies to actually utilize the 68 million acres of unused public land they already have under lease. Today, he released the following statement:

"If there ever was evidence that Big Oil doesn't need any more federal handouts, the parade of astronomical oil company profit reports that began today is it. On one extreme you have American families getting absolutely slammed by gas prices. On the other extreme you have the oil companies counting their money, sitting on 68 million unused acres and asking for even more land to put on their books. There is no way to justify giving yet another handout to these companies, especially when they are focusing far more on stock buybacks than the type of exploration and innovation that will help lower energy costs for American families.

"The oil men in the White House and their party are trying to pull a fast one on the American people by selling a plan that has a lot more to do with oil company stock prices than gas prices. For far too long, our government has held the oil companies' hands rather than holding them accountable. American families are getting squeezed, and they deserve a government that works for them, not for Big Oil."

Senator Menendez's plan for lowering gas prices, long-term transportation costs:

• Lower gas prices now - Unchecked speculation on the oil trading markets has driven oil prices higher; Senate Democrats have strong proposals to clamp down on oil speculation: http://menendez.senate.gov/newsroom/record.cfm?id=299186&
• Hold oil companies accountable -Senator Menendez is a lead sponsor of legislation that will spur domestic oil production by compelling big oil companies to begin utilizing the 68 million acres that they lease but thus far have not used to produce energy:
http://menendez.senate.gov/newsroom/record.cfm?id=300453
• Break our dependence on oil - Sen. Menendez has been a strong advocate for renewable energy and advanced alternative fuels. Recently, he helped push an amendment through the Senate that would extend renewable energy tax credits to help fight global warming and wean us off of fossil fuel:
http://menendez.senate.gov/newsroom/record.cfm?id=295986


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