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Stephen Kretzmann

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Fred Upton: Big Oil's Superman in the Super Congress

Posted: 08/17/11 04:54 PM ET

Numerous recent polls reveal that the American people believe that Congress is more responsive to their campaign donors than their own constituents. In addition, Americans of all affiliations clearly favor ending oil industry handouts. The question is, whose side is Fred Upton on: the American people's or Big Oil's?

Rep. Upton is Big Oil's biggest champion on the newly named Joint Committee on Deficit Reduction. All six Republicans on the Committee have consistently voted to preserve oil industry handouts.

Six months into his tenure as Chairman of the House Energy and Commerce Committee, Rep. Fred Upton has stopped even trying to hide his pro-Big-Oil agenda. Upton consistently sides with the oil and gas industry -- and it's clear why.

During his House career, Upton has received $281,350 in oil and gas industry campaign contributions and more than a third that total, $100,700, during the 2010 election cycle. The energy industry is opening their wallets for Upton -- in the second quarter of 2011 alone, Upton raised $104,000 in campaign contributions from oil, gas and coal -- and its not even an election year.

This may seem like a lot of money, until you consider the return on Big Oil's investment. The oil industry has spent roughly $280,000 to back Upton and $4 billion is the low end of credible estimates of the value of their subsidies. Eliminating some of the zeroes, would you invest $2.80 to get $40,000 in return? Of course you would. Big Oil could spend a hundred or even a thousand times more on Fred Upton, and it would still be a great bargain for them.

Oil industry lobbyists have made keeping the corporate welfare a top priority. The American Petroleum Institute announced earlier this year that it would for the first time begin directly donating to candidates, adding to the more than $13.6 million the oil industry gave to current members of Congress during the last election cycle.

In July, Upton pushed legislation that would speed up the development of the Keystone XL pipeline through his committee. Common sense would make that a risky political decision, considering what Michiganites have endured since the Enbridge Energy oil spill into the Kalamazoo River that feeds Lake Michigan. But Upton has already shown his disregard for Michigan families by appearing in the front row of an API conference, just six months after the spill of a million gallons of oil into the river running right though his district.

In fact, since taking the chairmanship, Upton has been maneuvering to dismantle the Environmental Protection Agency (EPA) and Department of the Interior, blasting the standards and protections that keep American families safe from the reckless practices of Big Oil companies. And he's not doing this on behalf of the working men and women of this district. A recent poll from the American Lung Association revealed 65 percent of Michigan and Ohio voters supported stricter EPA limits.

Big Oil is working hard to keep campaign checks flowing and the access they bring open and active. The 2010 increase in funds marked a dramatic shift in Upton's politics. Unfortunately for regular families, that kind of access is limited if you can't write a huge check.

So, Upton's priorities continue to seemingly move away from protecting families and towards pushing the agenda of his financiers.

Is Fred Upton willing to act on behalf of Michigan families for a change? Or will he continue to be Big Oil's champion? The answer will show us all who Fred Upton really listens to most.

 

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08:22 AM on 08/18/2011
Legalized unlimited bribery is the greatest threat to democracy this country has ever had.  With the new unconstitutional super-congress, corporations and their wealthy owners only need to bribe 12 people to get what they want.  This is an outrage!  We must organize peaceful protests that block roads and national labor strikes.  We should demand an immediate end to the super-congress and unlimited bribery.
08:21 AM on 08/18/2011
"All six Republicans on the Committee have consistently voted to preserve oil industry handouts."
This is SOLID PROOF that the republicans don't care about the debt, or the deficit, or financial responsibility.
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Malcolm Hensley
Last of the Reagan Republicans
01:29 AM on 08/18/2011
Can I tell you something about the BIG OIL SUBSIDIES. Surprise, they don't go to big oil!

http://www.eia.gov/oiaf/servicerpt/subsidy2/pdf/execsum.pdf

Another big surprise in 1999 the last year president Clinton was in office little petroleum and natural gas got about $2 billion in subsidies. In 2007 under Oilman President Bush they got $2 billion in subsidies.

Most people don't know this but - and you got to love this progressives and conservatives alike - Big Oil did not qualify for most of the subsidies because of the AMT! That's right the Alternative minimum tax!!!

Seems they're are over 3000+ oil and natural gas companies operating in the U.S. Forbes Magazine supported President's Obama plan to end the subsidies because Forbes buddies Big Oil could not compete with the small drilling companies - seems Big Bad Oil is only responsible for about 10% of the new wells drilled in the U.S. Forbes went on in their article to say it would make drilling in the U.S. more efficient!

Now tell mr do we really want to make Big Oil Bigger?

Now tell me Mr. Kretzmann are you being paid by big oil under the table?

Because your goals seem to be align!
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11:57 PM on 08/17/2011
By the way, who, exactly do you all think is getting all the Big Solar and Big Wind subsidies? Yep, Chevron, BP, Bechtel, Goldman Sachs, Morgan Stanley, Google - companies that are CREATING THE EMISSIONS AND ECONOMIC PROBLEMS THEN GETTING PAID TO (AHEM) "CLEAN THEM UP!"

What a complete scam!

We need rooftop solar and storage solutions and screw Big Energy of ALL types - they are rapacious and un-American.
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Bubblessharky
Where sanity dares to tread
11:43 PM on 08/17/2011
Stinks to friggin high heaven.

When will the American people wake up and realise they have been sold down the swanny. The large corporations that are increasingly shipping US jobs off overseas, extracting the last fossil reserves, earning obscene profits and paying little or no taxes are destroying the US and I am scared to say, probably the rest of the world with it.

And now Perry is denying climate change at all. Is there any sanity left?
Genders
Love, Tolerance, Enlightenment
08:43 PM on 08/17/2011
And Baccus too.,
05:37 PM on 08/17/2011
I agree. Time to end subsidies and handouts to big oil... and to big solar and to big wind and to big ethanol, too.

Time to end government subsidies to all "big" energy. Government handouts not only distort the market, but when industries and companies rely on government handouts and regulatory breaks, they become corrupt. Big wind, big solar and big ethanol will soon be seen handing out big campaign contribution checks to congressmen and senators on the energy committees, if in fact they aren't already doing so.
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OilFieldGuy101
Support the needy, Oppose the lazy
07:35 PM on 08/17/2011
Ok lets just look at one company. Exxon made in the US 7.7 billion last year. Just the money it paid on the federal level was 1.3 billion. That does not include state and local taxes. That does not include the taxes on at the pump.
GE the big green company did not pay any taxes.... Sam I applaude you for wanting to cut everyone. But everyone loves to beat up on Big Oil but you never hear about GE and other companies friendly to the liberals....

To listen to the TV you would think Big Oil pays nothing. They are paying.
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mrpotatohead
auto micro-bio: OFF
11:22 PM on 08/17/2011
It's troubling that you would say "you never hear about GE and other companies friendly to the liberals.." even if it's an accurate statement.

Liberals and conservatives are Americans. Why would your first reaction be to put it in context of political parties?
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BBackSoon
Hello, I must be going.
11:50 PM on 08/17/2011
Exxon made $7.7B and paid $1.3? Is that like 16% in taxes? I pay a hell of a lot closer to 25%.

Nowhere near that Job stifling 35% we hear about.

And I think you will find we Liberals are not happy about GE skating. Most of us would like to lower the rate to maybe 20% or 25% but get rid of all the deductions.
Genders
Love, Tolerance, Enlightenment
08:45 PM on 08/17/2011
Half right. End the fossil and nuke subsidies, and corn ethanol is a disaster too.

But you are wrong, rooftop pv, offshore wind and waste bio char bio fuels need the republics help.

Without it, even though green energy is cheaper than clean coal, nukes and oil wars, the big companies have 100 times as much money to buy politicians and the run at a loss for 100 times longer than green energy companies can survive.

Or do you believe the fantasy that the market will decide?
06:05 PM on 08/18/2011
I believe the “fantasy” that the market will decide. I do not want the government to decide. Government is the wrong place to look for economic decisions. It is not constituted to make economic decisions well. Economic decisions require the absence of coercion, or at least as free of coercion as possible. Certainly there are some types of decisions government makes better than private markets do, such as police, courts, military, to name some, but energy is a private market commodity, not a government good. Notice that the types of decisions we want government to make involve coercion. Economic decisions are best made by private individuals. We may be unhappy that others don’t make economic decisions they way we want them to, so we feel that we should get government involved and compel them to make the decisions our way. Once we begin to compel people to make “better” decisions, then we introduce coercion, corruption and market distortions. Look at oil. Green energy if it continues to get government handouts will become corrupt, if it isn’t already.

If as you say that green energy is cheaper, then it certainly will survive on its own and doesn’t need subsidies. Besides, even it if wasn’t cheaper, it shouldn’t get subsidies. As I said, subsidies ultimately lead to campaign contributions, political corruption, market manipulation and distortions.
01:11 AM on 08/21/2011
Genders:

Read your latest comments. Thanks.

For the second time I still don't have your comments about the fact that it has been governments and not capitalists who have committed the most crimes against humanity.

Also, your comment, “Unregulated capitalism free market crash, boom, kill millions, start wars, and leave the very few owning everything.” Not great English syntax, but I get the message.

Again, where are the names and dates of the events and body counts of the millions that capitalists and free markets have killed? Need more time?

Looking for replies to these.

And:

I don't see the Arabs in Egypt, Syria, Tunisia and Libya fighting against the corporations and the capitalists. Hmmmm, they seem to be fighting against their own governments. Maybe they should stop fighting the govt and fight the capitalist oil companies instead. Ya think maybe they got it wrong? How could they fight against their own government that is there to protect them? Why don’t they read your comments? If they did they might turn against the true architects of their misery, the oil companies! How am I doing?