Last week, Representative Leonard Boswell (IA-03) brought up the need to end oil subsidies repeatedly during an Iowa Public Television appearance. This week, Boswell and other House Democrats requested “a full House Agriculture Committee hearing and investigation into the relationship between rising oil prices and Wall Street speculators.” So I was surprised to see Boswell vote for an offshore drilling bill the House approved on May 5.
Details on yesterday’s votes and Boswell’s recent statements on oil policy are after the jump.
The Republican-backed “Restarting American Offshore Leasing Now Act” passed by 266 votes to 149. The roll call shows that Boswell was among 33 House Democrats to support the bill. Iowans Bruce Braley (IA-01) and Dave Loebsack (IA-02) voted no, along with most of the Democratic caucus. The Hill’s Andrew Restuccia summarized key provisions:
The legislation, authored by House Natural Resources Committee Chairman Doc Hastings (R-Wash.), would set a deadline for holding delayed Gulf of Mexico oil and gas lease sales. It would also mandate the sale of leases off the Virginia coast, a plan the administration nixed after last year’s Gulf oil spill. […]
Republicans also argued that the legislation would help to lower gas prices. But energy analysts say expanded U.S. oil and gas drilling would have no significant near-term impacts on gas prices.
Democrats blasted the bill Thursday and sought to tie Republicans to the oil industry ahead of the 2012 elections and amid growing public concern about gas prices.
“This is about big oil handouts, pure and simple,” Rep. Rush Holt (D-N.J.) said.
A White House statement criticized the bill on different grounds:
The White House said the bill would “undercut” new offshore drilling safety reforms imposed after the massive oil spill last year.
“These reforms strengthen requirements for issues ranging from well design to workplace safety to corporate accountability, and they require operators to show that they can contain a subsea oil spill like the Deepwater Horizon oil spill,” the White House said.
The May 5 press release from Boswell’s office puts an entirely different spin on this bill:
Boswell Fights to Keep American Oil for American Families
Washington, DC – Today, Congressman Leonard Boswell voted to keep oil and natural gas that is produced in the United States solely for American consumption.
“Domestic oil production is currently at a 10-year high, increasing by one-third in the last two years, yet gas prices are still rising as Big Oil and Wall Street are taking advantage of consumers at the pump,” Boswell said. “I voted today to make sure that domestic oil stays in-country and solely benefits American communities and workers. I understand that Iowans cannot afford to pay $4 for a gallon of gas and cannot stomach doing so when oil and gas companies receive billions in government subsidies. While in my gut I feel a supply shortage is not the driver behind outrageous gas prices, I will employ every solution to bring down the cost to consumers – from safe and responsible domestic drilling to holding Wall Street accountable for excessive speculation.”
Boswell sent a letter this week to House Agriculture Committee leadership requesting a hearing and investigation into the role of Wall Street in driving up the price of oil through excessive speculation and profiteering.
I’ll get back to Boswell’s request for an investigation in a moment, but first, I want to highlight this remarkable statement: “While in my gut I feel a supply shortage is not the driver behind outrageous gas prices, I will employ every solution to bring down the cost to consumers […]” Boswell knows more offshore drilling won’t reduce the cost of gas, but he doesn’t want to be accused of voting against efforts to increase domestic energy supply. It’s not a profile in courage, that’s for sure.
In fairness to Boswell, before supporting final passage of the offshore drilling bill he did join the majority of House Democrats in opposing a motion to proceed with consideration of the bill. Democrats were trying to defeat the motion in order to force a vote on separate legislation to repeal tax subsidies for the oil industry.
Boswell also voted for both Democratic amendments offered yesterday when the offshore drilling bill reached the House floor. One offered by Representative Rush Holt of New Jersey would “allow lease sales to go forward, but require new environmental and safety reviews, following the BP spill.” The other offered by Representative Gerry Connolly of Virginia would “ensure that a lease sale off the coast of Virginia does not interfere with offshore operations by the Defense Department and the Navy.” Both amendments failed on mostly party-line votes.
Republicans Tom Latham (IA-04) and Steve King (IA-05) voted for the offshore drilling bill yesterday and against the Democratic amendments. The Democratic Congressional Campaign Committee quickly sent out nearly-identical press releases criticizing Latham and King. Notably, the DCCC didn’t slam the Republicans for supporting more offshore drilling (the central aspect of the bill that passed).
Instead, the DCCC put the spotlight on the earlier procedural vote, which prevented consideration of the separate oil subsidies repeal measure. Here’s an excerpt from the DCCC’s blast against Latham, who will be Boswell’s opponent in the new IA-03 next year:
Representative Latham Votes to Keep Taxpayer Giveaways to Big Oil Companies
Today, Representative Tom Latham (IA-04) voted to protect billions of dollars in taxpayer giveaways for Big Oil companies. Last week, the big five oil companies reported that their profits increased by 38 percent since this time last year, while middle income families are feeling the squeeze at the gas pump. Two weeks ago, Latham voted to end Medicare and raise health care costs for seniors in order to protect these taxpayer giveaways for Big Oil.
ExxonMobil reported profits of nearly $11 billion in the first quarter of 2011, a 69 percent increase. Shell reported profits of $7 billion, ConocoPhillips reported profits of $3 billion, Chevron reported $6.2 billion, and BP reported $5.5 billion.
Representative Latham has raked in $42,500 in campaign contributions from Big Oil and gas, and is a consistent vote for Republicans’ Big Oil agenda.
“Representative Tom Latham today chose taxpayer funded giveaways for Big Oil companies making record profits rather than doing what’s right for folks squeezed by high prices at the pump,” said Jesse Ferguson of the Democratic Congressional Campaign Committee. “Tom Latham’s priorities are clear: protecting Big Oil comes at the expense of seniors and working families. No wonder Big Oil rewards Representative Tom Latham with generous campaign contributions.”
The measure Latham opposed would bring the Big Oil Welfare Repeal Act of 2011 (H.R. 1689) to the floor for consideration. H.R. 1689 would amend the Internal Revenue Code to prohibit major oil companies (the Big 5) from receiving a tax deduction for domestic oil and natural gas production activities.
Background
· Representative Tom Latham opposed a measure that would allow the House of Representatives to approve the Big Oil Welfare Repeal Act of 2011 (H.R. 1689) which would repeal key taxpayer funded subsidies for oil and gas companies. As reported by The Hill newspaper, “House Democrats intend to force a vote on a measure that would eliminate a key oil industry tax break when Republicans bring a bill to expand domestic oil and-gas drilling to the floor Thursday.” [H Res 245, Vote #293, 5/5/11; The Hill, 5/4/11; CBS News, 5/4/11]
· In March, Latham opposed a Motion to Recommit that would ensure no “tax benefit” could go to a “major integrated oil company.” [HJ Res 44, Vote #153, 3/01/11]
· Big Oil Profits Up 38 Percent. “Americans spent 28 percent more for gasoline during the first three months of 2011 than the same period in 2010. Meanwhile, the big five oil companies-BP, Chevron, Conoco Phillips, ExxonMobil, and Shell-made 38 percent more profit.” [Center for American Progress, 5/3/11]
· ExxonMobil reported profits of nearly $11 billion in the first quarter of 2011, a 69 percent increase. Shell reported profits of $7 billion, ConocoPhillips reported profits of $3 billion, Chevron reported $6.2 billion, and BP reported $5.5 billion. [Center for American Progress, 5/3/11; ABC News, 4/28/11]
· In March, the Democratic Steering & Policy Committee held a hearing noting that from 2005 to 2009, the largest oil companies have made $485 billion in profits. [climateprogress.org, 3/01/11]
· Latham has taken $42,500 from the oil and gas industry while in Congress. [opensecrets.org, accessed 5/05/11]
Comparing the lifetime voting records of Latham and Boswell, there’s no doubt who has been more loyal to the oil and gas industry. According to the Progressive Punch database, Latham has voted the “progressive” way on oil and gas subsidies only about 4 percent of the time. Boswell’s votes on legislation related to oil and gas industry subsidies are a mixed bag, but he has a 75 percent “progressive” record in this area.
Still, it’s a stretch for Boswell to position himself as a crusader against “taxpayer-funded giveaways to Big Oil” and then vote for more offshore drilling less than a week later. Sorry, the Restarting American Offshore Leasing Now Act isn’t about keeping “American oil for American families.”
Before ending this post, a quick look at Boswell’s request for “a hearing and investigation into the role of Wall Street in driving up the price of oil through excessive speculation and profiteering.” Here’s more from his press release of May 4:
“As Ranking Member of the Agriculture Subcommittee that oversees the U.S. Commodity Futures Trading Commission, I have a responsibility to ensure speculators are not exploiting oil supply fears to make big profits,” Boswell said. “The CFTC determined in 2008 that Wall Street speculators were increasing their positions in energy markets to capitalize off of political unrest in heavy oil-producing nations. Energy prices drive up the cost of goods across the board, from input costs on the farm to the food on the kitchen table. I am calling for a hearing to make sure that Wall Street and Big Oil are not purposely driving up prices once again to make a quick buck on the backs of the middle class and small business owners who are hit the hardest when the price of gas skyrockets.” […]
Boswell added, “The Agriculture Committee has a history of investigating oil speculation when gas prices reach record levels, regardless of what party is in charge. It is my hope that Committee leadership will take the issue of rising gas prices seriously, as well as our hearing request, and allow daylight to be shed on this important issue.”
Regardless of whether the House Agriculture Committee holds hearings on this matter, voters in IA-03 are sure to hear next year that Boswell tried to protect consumers against Wall Street manipulation of the price of oil.
Share any relevant thoughts in this thread.