facebook
twitter
search
search

Congress cuts oil company welfare

May 19, 2006 at 9:41 AM

WASHINGTON, May 19 (UPI) -- The U.S. House of Representatives has approved a bill to pressure companies to renegotiate more than 1,000 leases for drilling in the Gulf of Mexico.

The measure, passed Thursday 252-165, is calculated to extract $7 billion more from energy companies for oil and natural gas they produce from land beneath publicly owned waters, The New York Times reported Friday.

Democrats argued that so-called royalty incentives are inappropriate in a time of high energy prices.

"Oil companies want to play Uncle Sam for Uncle Sucker," said Rep. Edward J. Markey, D-Mass., who co-sponsored the amendment with Rep. Maurice D. Hinchey, D-N.Y. "Today, we must put an end to these senseless giveaways."

The bill to rescind royalty incentives drew the support of 85 Republicans.

Energy companies had other setbacks Thursday including a House rejection of a bill to lift a 25-year ban on oil drilling in coastal areas outside the western Gulf of Mexico and another to keep blocking natural gas drilling.

Related UPI Stories
Latest Headlines
Trending Stories
Ted Cruz campaign pulls ad featuring softcore porn actress
Report: Clinton Foundation subpoenaed by State Dept. watchdog over charity projects
Ruby Rose, Gigi Hadid react to Kanye West's lyric about Taylor Swift
Kristen Wiig impersonates Peyton Manning on 'The Tonight Show'
NYC police officer found guilty of manslaughter in Brooklyn stairway shooting