Report Shows Oil Companies Block Renewable Fuels

gasoline_pumpThe biggest names in the oil industry get failing grades when it comes to offering alternative transportation fuels like ethanol, according to a new report card released today by the Renewable Fuels Association (RFA).

A new “Consumer Choice Report Card” grades the nation’s largest retail gasoline chains based on whether they are providing consumers with alternatives to regular gasoline that cost less, reduce pollution and are higher octane for better engine performance.

RFANewlogoAccording to RFA, the “Big Five” oil companies all scored at the bottom of the list — with fewer than one percent of stations offering American made, renewable alternatives like E85 or E15 — while a number of major independent retail chains received “A+” grades, with more than 25 percent of their stations offering E85 or E15. Those five companies are Exxon, BP, ConocoPhillips, Chevron and Shell. At the head of the class are independent chains such as Break Time, Meijer, Thorntons, Kum & Go, and Kwik Trip – all of which earned a grade of A+ for their support of renewable fuels. Among oil company affiliated brands, only Speedway/SuperAmerica and Cenex received high marks (“A-“ and “B,” respectively.)

The Consumer Choice Report Card is part of a new report from the RFA titled “Protecting the Monopoly: How Big Oil Covertly Blocks the Sale of Renewable Fuels” which exposes how the five largest oil companies, along with a number of leading refiners, are “engaging in strong arm tactics and covert practices to prevent and discourage the sale of renewable fuels, especially at stations carrying their brand name.” The report finds that oil company distribution contracts “routinely include provisions that make it difficult, needlessly expensive, or simply impossible for a retailer to offer consumers choices like E15 or E85.”

RFA president and CEO Bob Dinneen and RFA Senior Vice President Geoff Cooper held a media call to discuss the report and scorecard. “Cynically, oil companies frequently cite a shortage of fueling infrastructure as a reason why the EPA should lower the requirements of the Renewable Fuel Standard. Yet, as demonstrated in this analysis, the oil industry itself has deliberately created this shortage by making it as difficult and burdensome as possible for retail gas stations to offer greater volumes of renewable fuels,” said Dinneen. “We have to enforce the Renewable Fuel Standard.”

Cooper explains some of the tactics used by the big oil companies to prevent or discourage sales of renewable fuels. “Most of these contracts require supplier exclusivity meaning the retailer can only sell fuels made by supplier,” said Cooper. “So if the supplier doesn’t make E15 or E85 available at the terminal, the distributor can’t distribute it to the retailer.” Cooper says many agreements actually actively discourage retailers from promoting the availability of E85 and some have been fined for doing so.

Listen to or download the call here: RFA report on how oil companies block renewable fuels

Solutions to Threat Oil Poses for Armed Forces

A new video offers solutions to the threat oil poses for America’s armed forces and the nation’s security. The video was developed by the Union of Concerned Scientists (UCS) and the Truman National Security Project. The new video details the growing danger of oil use to the country’s national security. The U.S. Department of Defense is the world’s largest institutional oil consumer, using more than 100 million barrels every year to power ships, vehicles, aircraft, and ground operations. That’s enough oil to drive around the Earth more than 4 million times. According to the two organizations, this high use leads to greater unpredictability for missions, especially given oil’s vulnerability to price swings on the world market.

“Moving fuel on the battlefield is dangerous and expensive,” said Michael Breen, a former Army captain and executive director at Truman. “A ten dollar increase in the price of a barrel of oil costs the military $1.3 billion — money we can’t use to accomplish our mission and protect our troops.”

The groups argue that despite oil industry advertising championing new domestic production, so called “new oil and gas” resources aren’t really new at all. And they are only available because the oil industry is now desperate enough to go after dirtier, more difficult and expensive oil than they were before. They they said is neither a sustainable solution for our armed forces or our country.

“As the era of cheap and easy oil comes to an end, the oil industry’s desperation for continuing profits has led to more and more destructive practices that are not solving the problems associated with oil use,Hybrid Humvee” said Siv Balachandran, an engineer and oil analyst at UCS. “The real solution is to use less oil.”

Balachandran and Breen noted that the armed forces are adopting new, innovative technologies to reduce oil use while creating a stronger, more effective fighting force. For example, the Navy uses biofuels made from algae and other advanced sources, while the Army is powering Humvees with hybrid-electric engines. These technologies could benefit civilians too.

“The country is already making progress on this front, with federal and state policies helping cars go farther on each gallon of gas and putting thousands of hybrid and electric vehicles on the road — saving the country money while reducing emissions and creating jobs, but the work is not done,” said Balachandran. “By supporting policies that cut oil use even further, we’ll keep America healthier, wealthier, and more secure.”

Breen added, “As the largest institutional consumer of fuel in the world, the U.S. military is leading the way in reducing oil use and investing in renewable options. That’s good for America’s budget and for national security. Our communities – the veterans and national security leaders of Operation Free, and the scientists of UCS – are united in supporting the military’s innovative clean energy solutions.”

Where do Iowa Candidates Stand on the RFS?

Americans United For Change want Iowans to know where their candidates for U.S. Senate stand: with Iowa farmers or Big Oil. The Renewable Fuel Standard (RFS), legislation that mandates the U.S. transportation sector blend 36 billion gallons of alternative fuels into our fuel by 2022. With more than 30,000 comments sent to the Environmental Protection Agency (EPA) on their proposed 2014 required volume obligations, aka, how many gallons of biofuels will be blended into fuel in 2014, there has still been no word on the final 2014 rule out of D.C.

In Iowa, primary elections took place last week and newly nominated Republican Joni Ernst, who currently serves as an Iowa Legislator, has not taken a firm stand on the RFS. According to Americans United for Change, she claims to be pro-RFS but often in the same breath admits she is “philosophically opposed” to all subsidies and that she “want[s] people to choose products that work for them and not have them mandated by the United States government.”

Americans United for Change Des Moines Register pro-RFS adToday, Americans Unite for Change, in an effort to get a straight answer, has taken out a full page ad in the Des Moines Register and Cedar Rapids Gazette that asks the questions whether the tens of thousands of dollars Ernst’s campaign has already taken from the billionaire oilmen Koch Brothers is the reason why she is so hesitant to go to the mat for renewable fuels. The biofuels industry accounts for $5.5 billion of Iowa Gross Domestic Product (GDP, generates $4 billion of income for Iowa households, and supports 60,000 jobs throughout the state.

Jeremy Funk, Comm. Dir., Americans United for Change, said of the ad, “As the candidates from opposing parties interview to be the next Senator from Iowa, there are many issues like raising the minimum wage that will present a clear contrast for voters. The Renewable Fuel Standard should not be one of those issues in the state that leads the nation in renewable fuel production with 41 ethanol plants and 18 biodiesel plants.”

“And yet,” continued Funk, “Tea Party-favorite Joni Ernst is going out of her way to complicate the simple and flip-flopping all around the issue. Talking out both sides of the mouth is something we’ve come to expect from politicians, just not politicians from Iowa on the issue of supporting renewable fuels. A strong and clear voice of support for ethanol and biodiesel is needed now more than ever in Washington with Big Oil spending millions of dollars to try to put out of business their cheaper, cleaner competition so they can gouge consumers at the pump with impunity.”

But it seems the more money Joni Ernst’s campaign rakes in from big oil interests like the billionaire Koch Brothers, the weaker and murkier her position becomes.” Funk concluded, “You can tell a lot about how a politician would actually govern by the friends they keep.”

Another Day, Another Oil Spill

An oil pipeline ruptured in Los Angeles on LA Street yesterday and in response Americans United For Change said, “Like oil spills? You’ll love what happens after dismantling the Renewable Fuel Standard. 50,000 gallons of crude oil spilled out onto the streets and in some areas the crude oil was knee-high.

Photo: LA Times

Photo: LA Times

Jeremy Funk, spokesperson for pro renewable energy and pro Renewable Fuel Standard (RFS) group Americans United for Change, said of the crude oil spill, “Whether you live in the Gulf Coast community, near a railroad in Lynchburg, VA, a farm in North Dakota, or in the middle of a major metropolis like Los Angeles, it seems nowhere in America is out of reach from the messes big oil leaves behind.”

“Headlines about oil industry spills and explosions and derailments have become a ‘dog bites man’ story,” Funk continued who stressed that the alarming rate of environmental disasters associated with oil should give the Environmental Protection Agency (EPA) serious pause before deciding whether or not to roll back the RFS. The EPA is expected to publish its final 2014 RFS rules around June 1 and there is concern they will move forward with lower renewable fuel gallons than what is called for in legislation.

“Consider that ethanol makes up 10% of the U.S. gasoline supply, and that for every gallon of ethanol produced domestically it means one less gallon sold of gasoline derived from dirty crude oil from unstable regions. That’s why the oil industry wants the EPA to help put out of business their safer, cleaner, cheaper renewable fuels competition. But if the EPA give big oil what they want and drastically cuts down the amount ethanol in the nation’s fuel supply, there’s no way to avoid a corresponding increase in demand for crude oil and an increase in the number of disasters related to transporting it.” Funk added, “So if you like oil spills — you’ll love what happens if the RFS is watered down.”

Reuters Story at Odds with Philly Energy Independence

novo-phillyThe mayor of Philadelphia delivered a “Declaration of Energy Independence” today to recognize the city’s and region’s contributions to domestic energy and energy security. At the same time Reuters broke a story claiming that Philadelphia oil refinery connections were the main forces behind the Obama administration proposal to lower volume requirements for biofuels under the Renewable Fuel Standard (RFS) this year.

Mayor Michael Nutter’s declaration proclamation was made at the request of the Biotechnology Industry Organization (BIO) and Novozymes, marking the start of BIO’s World Congress on Industrial Biotechnology.

philly-energyAccording to the article, it was The Carlyle Group and Delta Air Lines, owners of two refineries in the Philadelphia area, that put the pressure on the administration to cut back on biofuels requirements by convincing policymakers that “the rising mandates would cripple their businesses and threaten thousands of jobs.”

The article claims that two Pennsylvania congressman were called on to take the refiners’ concerns about the RFS to the White House, and that in July and August of last year, “17 refiners and their allies visited the White House’s rulemaking arm, the Office of Management and Budget (OMB) to discuss the RFS. Only six biofuel supporters visited the OMB over the same time.” Reuters even produced a graphic to illustrate the comparison between visits by oil and ethanol lobbying interests last year.

Read the story here.

Saudi Oil Money Backing Ethanol Smear Campaign

americans-changeAmericans United for Change and VoteVets.org held a press call today to reveal IRS documents showing that Saudi Oil money is helping to finance the multi-million dollar anti-renewable fuel smear campaign ads that the American Petroleum Institute (API) is waging against ethanol and the Renewable Fuel Standard. Also today, the API held a press call to once again call for the lowering of ethanol volumes as mandated by the RFS. As of today, the Environmental Protection Agency (EPA) has not published its final renewable volume obligations (RVO) for 2014 as they continue to sift through more than 25,000 comments submitted in response to their proposal.

In response to the continued attacks on biofuels, Americans United for Change is launching a Sunday show TV blitz aimed at both the public, legislators and key decisions makers in the Beltway in an attempt to set the record straight. Part of the ad calls out how foreign oil interests are attempting to keep America addicted to dirty petroleum products. According to tax documents, Saudi Arabia has been a funder of API dating back to 2008 and an employee of Saudi Aramco – a company with an estimated worth of $7 trillion by Financial Times, actually held a seat on API’s board.

‘The Kingdom’ will air May 4, 2014 on Meet the Press, Face the Nation, This Week and Fox News Sunday in the Washington, D.C. market.

Listen to the full conference here where Brad Woodhouse, Americans United for Change president “follows the Saudi money”: Saudi Oil Money Backing Ethanol Smear Campaign

Brad Woodhouse, President, Americans United for Change said during the press call, “API’s agenda is very simple and very greedy: they want EPA to cut the amount of renewable fuel in gasoline while raising the amount of crude oil. This is about market share, plain and simple.”

“You see, for every gallon of renewable fuels that is blended into gasoline,” he continued, “it’s one less gallon of gasoline the oil industry can sell. And since the United States already consumes far more oil than we can produce, all of that additional oil will have to be imported. Oil demand goes up, which means prices go up, and consumers send more of our paychecks overseas. So we decided to follow the money, and based on what we found, American Petroleum Institute President Jack Gerard ought to be using air quotes whenever he utters his outfit’s name.”

Woodhouse notes that having a lobbyist for the Saudi King helping call the shots at API, is “deeply troubling.” “They’re funneling Saudi Oil money into a campaign to force us all to buy more Saudi oil, and passing it off as American as apple pie.” Continue reading

DF Cast: Fuels America Fights Back with “Oil Rigged”

Backers of renewable fuels say when it comes to the fight against Big Oil, the fight is rigged… oil rigged.

Recently, Fuels America held a pair of news conferences. The first was to announce the launch of its “Oil Rigged” television and digital ad campaign and OilRigged.com, designed to “expose the many ways the oil industry is rigging the system to protect their profits and block the transition to clean, American renewable fuels.” In addition, Fuels America is backing up its claims with more than just talk, unveiling a new survey showing how renewable fuels have added significantly to the country’s economy, especially in rural areas.

In this edition of the Domestic Fuel Cast, we hear from Growth Energy CEO Tom Buis, Renewable Fuels Association (RFA) president Bob Dinneen, Biotechnology Industry Organization (BIO) Executive Vice President Brent Erickson, and Jon Doggett with the National Corn Growers Association, talking about how they want to rig the debate back to the facts.

Listen to what they had to say after they listened to ACE: Domestic Fuel Cast - Oil Rigged

You can also subscribe to the DomesticFuel Cast here.

Ethanol Groups Fight Back with “Oil Rigged”

fuels-americaA coalition of biofuels organizations is fighting back against the oil industry by launching a new campaign called “Oil Rigged.”

Members of Fuels America today unveiled the details of its new “Oil Rigged” television and digital ad campaign and OilRigged.com designed to “expose the many ways the oil industry is rigging the system to protect their profits and block the transition to clean, American renewable fuels.” The announcement included representatives of member organizations Renewable Fuels Association (RFA), Growth Energy, and Biotechnology Industry Organization (BIO).

“They’ve rigged Washington,” said Growth Energy CEO Tom Buis, noting the oil industry has spent $855 million on lobbyists and campaign contributions over the past five years “more than a million dollars for every member of the House and Senate.” He added that the oil industry has also rigged the market “by refusing to invest in the infrastructure” to sell higher blends of ethanol, rigged the tax code and rigged the debate over renewable fuels.

oil-rigged“They are trying to rig the debate with misinformation, junk science and misleading ads all designed to scare consumers and Congress about ethanol to protect their market share,” said RFA president Bob Dinneen.

The group chose Earth Day for starting the campaign to make the point that biofuels are making a positive difference for the environment. “What we’re really talking about here is doing the right thing for the planet,” said Brent Erickson, BIO Executive Vice President. “Of everything the United States is doing from a policy standpoint to reduce carbon pollution, the Renewable Fuel Standard is making the biggest impact by far.”

Listen to all the comments from Buis, Dinneen and Erickson here: Fuels America Oil Rigged Campaign

Oil Spills & Contaminated Gas – Ethanol Takes On API

RFA_GrowthEnergy_Dear_Oil_AdA recent edition of the New York Times and Politico have published what the Renewable Fuels Association (RFA) and Growth Energy are calling “good-humored, but factual takedown of Big Oil’s false, hypocritical attacks against clean, renewable ethanol”.

In response to American Petroleum Institute’s (API) current national anti-biofuel campaign, the two ethanol associations have published an ad that is an open letter to Jack Gerard, API president in Politico and all DC editions of the New York Times.

Dinneen and Buis write, “Despite the millions of dollars your industry has spent on bogus TV ads, there hasn’t been a single reported case of engine damage from ethanol blended fuels like E15. But last week, Exxon admitted selling customers in Louisiana more than 5 million gallons of oil-based gasoline that was so bad that it’s been stopping cars dead in their tracks. In fact, one auto shop reported 40 or 50 customers who had trouble starting their engines as a result of Exxon’s contaminated gas. That’s 40 or 50 more cases of engine problems than have been reported in the entire country from E15, and that’s just one shop in Baton Rouge!”

With summer around the corner consumers are getting their boats ready for the waters and API has taken the opportunity to run ads about boats not being able to use E15 or other higher blends of ethanol. However, what API does not acknowledge is that the Environmental Protection Agency (EPA) did not approve E15 for small engines or boats.

Going directly at the current API boat ads, the open letter continues, “While your ads are misleading people about the impact of ethanol on marine engines, boats in Houston are in dry dock because of your oil spill! In fact, that one company has been fined for 77 different oil spills since 2008, which means they have averaged more than one oil spill per month for the last six years. That’s a lot of boaters impacted by oil spills, Jack.”

The open letter is summed up in one simple closing thought, “You see, Jack, the real environmental peril is oil, not renewable fuels like ethanol.”

API Runs Additional Biofuel Attack Ads

The American Petroleum Institute (API) will be running additional advertisements criticizing biofuels and the ethanol industry is once again fighting back.

“Once again, API has decided to perpetuate misinformation to protect their bottom line. They will do anything to protect their record profits and market share, even at the expense of consumer savings and a cleaner environment,” said Tom Buis, CEO of Growth Energy.

oil spill lake michigan“This recent series of ads are nothing more than fear mongering and misleading information. Time and again, the facts show that there is no substantial correlation between ethanol production and food prices,” continued Buis. “If Big Oil wants to point the finger at those who are driving up food prices, they should look no further than a mirror. In fact, a 2013 World Bank study has proven that crude oil prices are responsible for at least 50 percent of the increase in global food prices since 2004.”

Buis notes that marine and small engines are warrantied to use up to 10 percent ethanol and are not legally allowed to use E15 or other higher ethanol blends. He said the campaign has been designed to scare consumers, E15 is voluntary for use, and any suggestion that consumers are required to use E15 in small engines is completely misleading and false.

While the ads lay blame on the biofuels industry for additional environmental damage, Buis said that Big Oil a long history of ignoring environmental damage they are directly responsible for. “The sheer nerve to accuse biofuels of causing environmental harm on the 25th anniversary of the massive Exxon-Valdez spill, and the present-day oil slick off the coast of Texas, as well as another spill in Lake Michigan just yesterday, shows that Big Oil has a complete disconnect with reality and only cares about lining their pockets at the expense of the American consumer and our environment,” concluded Buis.

Stop Protecting Big Oil’s Bottom Line

A new TV advertising campaign is being launched in Washington, D.C. this Sunday by Americans United for Change calling for the Environmental Protection Agency (EPA) to stop supporting Big Oil’s bottom line. The EPA is currently reviewing comments of their 2014 proposed rule for the Renewable Fuel Standard (RFS). The goal of the TV ad is to underscore the consequences for rural jobs and all American consumers if they ultimately give Big Oil what they want: crippling their cheaper, cleaner renewable fuels competition.

‘Bottom Line’ follows two previous Americans United TV ads in support of the RFS, “Simple Choice” and ‘Why Mess With Success?”, and its digital ad campaign ‘Big Oil Is the Real Winner’, fighting back against the oil industry’s lies.

“Big Oil needs another giveaway from Washington like our coastal environment and economies need another BP deep-water spill,” said Caren Benjamin, executive director of Americans United for Change. “The industry already enjoys absurd loopholes that allowed the biggest companies among them to pay no taxes or even negative taxes in recent years. And while the ethanol industry voluntarily gave up their tax credit at the end of 2011, Big Oil runs attack ads against lawmakers who dare to suggest they don’t need $4 billion a year in taxpayer subsidies at a time when they’re posting $100 billion in profit. And how does Big Oil pay back the taxpayers for all their generosity? By shaking them down at the pump and polluting their ground water.”

Benjamin noted that Big oil gets whatever they ask for from Washington and said they are now asking the EPA to help put out of business their 70 cent cheaper and cleaner renewable fuels competition. “It’s time to draw the line not just because gutting the RFS is another giveaway to Big Oil, but because it’d be a huge takeaway from our rural economies, our national security, environment, and innovation towards cleaner renewable fuels of tomorrow.”

With a call to action to stop messing with the RFS Benjamin concludes that it doesn’t make sense to “mess with the success of the RFS.”

An Energy Enthusiast Version of March Madness

March Madness is upon us. For those not living in the United States, it’s the two weeks where college men and women’s basketball teams battle it out on the court until the last team is standing and crowned champion. Now that the NCAA teams have been announced and the brackets determined, people are filling out their official tournament forms with hopes of also being the last one standing (this assures bragging rights for one year).

This year, the Americans United for Change has released its own version of March Madness: the 1st Annual Environment Protection Agency (EPA) Renewable Fuel Standard Elimination Tournament. Jeremy Funk, communications director, notes that there is only one possible upset in this tournament and its a long shot and that is the renewable energy industry coming out the victor. He says “everyone knows the fix is in at this tournament if the EPA ejects the RFS and guarantees victory for 1st seed team Big Oil over the 16th seed team, The American Consumers”.

tumblr_n2n687cBjP1ts83mmo1_1280The EPA is currently reviewing more than 100,000 comments submitted in response to its 2014 proposed Renewable Fuel Standard (RFS) – an energy policy designed to reduce the use of imported oil while also reducing greenhouse gas emissions.

“Big Oil has been working the refs in Washington for decades, complaining they need billions of dollars in taxpayer subsidies, even when they’ve got $100 billion in profits on the scoreboard,” added Funk. “Now the oil industry has a full court press on Washington to once again rewrite the rules in their favor by ejecting the cleaner, cheaper renewable fuels competition from the game. Without a strong Renewable Fuel Standard promoting healthy competition, Big Oil would be free to give consumers the Bobby Knight treatment at the pump.”

He says he is confident that when the EPA’s referees review this call, they’ll see the RFS has been an incredible Cinderella Story for rural communities when it comes to creating jobs, income and opportunity.

Funk concluded, “They’ll see the RFS has meant our troops have has been playing stronger D by reducing our dependence on oil from unstable regions overseas. They’d see the RFS has been a slam dunk for innovations in cleaner burning, next generation renewable fuels to combat climate change. We’re confident in the end, the EPA will reverse this terrible call and make Big Oil play fair for a change.”

Rail Problems Impacting Ethanol Supplies

snow-trainOne impact of the long, cold winter across the nation has been weather-related rail disruptions that are taking a toll on ethanol supplies and production.

The record winter weather patterns that have caused repeated snowstorms have resulted in stalled trains, frozen controls and increased demand for rail cars. All that has made it difficult to move ethanol to the Northeast.

The Energy Information Administration reported last week that stocks of ethanol stood at 15.9, down 2.4% from the previous week, the lowest level of the year so far. Stocks are well below the 20-day supply mark for the second week in a row and on the East Coast stocks of ethanol fell to their lowest level on record last week, at 4.6 million barrels compared to 6.4 million this time last year.

“Naturally, limited regional mobility leads to limited regional supply which can impact prices, but market observers believe this is a temporary situation that will soon be corrected,” said Renewable Fuels Association Executive Vice President Christina Martin.

The backlog in transportation is causing ethanol plants to slow production somewhat. According to EIA data, ethanol production averaged 869,000 barrels per day (36.50 million gallons), down 25,000 barrels from the previous week and the lowest in eight weeks.

The backups have also been delaying grain shipments from last year’s record crop but rail company officials, including BNSF and CSX, say they are working hard to get everything back to normal.

New Budget Would Roll Back Oil Subsidies

2015-budgetThe recently proposed Obama administration Fiscal Year 2015 Budget includes $4 billion a year in cuts to oil industry subsidies, notes Americans United for Change (AUFC), which calls that “a big win for taxpayers and consumers.”

Under the Department of Energy section, the budget calls for elimination of “Unnecessary Fossil Fuel Subsidies” stating that as “the Nation continues to pursue clean energy technologies that will support future economic growth, it should not devote scarce resources to subsidizing the use of fossil fuels produced by some of the largest, most profitable companies in the world.” The proposed budget would repeal “over $4 billion per year in tax subsidies to oil, gas, and other fossil fuel producers.”

americans-change“We are elated that the President has renewed his commitment to doing away with billions of dollars in pointless subsidies for big oil that shortchange investment in cleaner burning, cheaper renewable fuels of the future,” says AUFC executive director Caren Benjamin, adding however that the EPA proposal to cut the Renewable Fuel Standard (RFS) at the same time is inconsistent. “It’s a proposal that runs totally counter to the President’s strategy to address climate change by supporting clean energy — because a weak RFS means less incentive for innovation in cleaner burning, next generation renewable fuels and guarantees a greater use of dirty fossil fuels.”

AUFC also points out that there seems to be some bipartisan consensus building in Congress against special tax treatment for the oil industry. The draft tax reform proposal circulated by Republican House Ways and Means Committee Chairman Dave Camp (R-MI), for example, would eliminate some of the accounting tactics that allow oil companies to report lower net profits and pay less taxes.

AUFC encourages House Budget Committee Chairman Paul Ryan to follow that lead and hold a hearing on “why an industry that made $100 billion in profits last year can’t do without billions of dollars in subsidies every year courtesy of the taxpayers.”

The Sorry State of Corporate Taxes

Citizens for Tax Justice has released a new five-year, comprehensive study of 288 profitable Fortune 500 companies finds that 26 paid no federal corporate income tax over the five-year period; 111 paid no federal corporate income tax in at least one of the last five years, and one-third paid a U.S. tax rate less than 10 percent over the same period, Citizens for Tax Justice and the Institute on Taxation and Economic Policy said today. “The Sorry State of Corporate Taxes: What Fortune 500 The Sorry State of Corporate TaxesFirms Pay (or Don’t Pay) in the USA and What They Pay Abroad —(2008–2012),” found that most multinational corporations in the study paid lower U.S. taxes on their domestic profits than they paid to foreign governments on their foreign profits.

Big Oil companies were part of the this list and the report found that several oil companies paid no taxes or negative taxes in at least one of the years between 2008 and 2012: Murphy Oil, Exxon Mobil, Occidental Petroleum, Devon Energy and HollyFrontier. The report found that Exxon Mobil actually got money out of the government, taking in more than $25 billion in one of those years while actually getting $954 million out of the taxpayers for a tax rate of negative 38 percent. Overall, the report finds, the oil, gas and pipelines industry paid taxes at an average rate of 14.4 percent in the five years measured making profits of more than $223 billion and paying taxes of only $32 million. During that same time period oil, gas and pipeline companies received $45 billion in subsidies.

“The incredible extent to which Big Oil takes advantage of the U.S. taxpayers should give serious pause to those considering whether to give the industry another huge giveaway they don’t need by gutting the Renewable Fuel Standard,” said Caren Benjamin, Executive Director, Americans United for Change, an organization that has called for more support of the renewable energy industry in continued support of the Renewable Fuel Standard (RFS).

“The ethanol industry voluntarily gave up their tax credit at the end of 2011, while Big Oil has fought tooth and nail to hold on to its billions of dollars in pointless and wasteful subsidies,” continued Benjamin. “Big Oil lobbyists claim these subsidies somehow benefit to the economy. But it’s clear they about as committed to boosting the American economy with these subsidies as Bernie Madoff was to building his clients’ retirement accounts. Bottom line: Anything they can do to suck more dollars in to their own pockets – from the government, from the taxpayers, at the pump, whatever it takes, they will do.”