Markey: Oil Lease Sale Today Begins Multibillion Dollar Boondoggle
FOR IMMEDIATE RELEASE
Contact: Select Committee, 202-225-4081
Markey: Oil Lease Sale Today Begins Multibillion Dollar Boondoggle
Oil Rights Divert Hundreds of Billions in Revenues from Federal Treasury, National Needs
WASHINGTON (March 19, 2008) – The Interior Department’s sale of billions of dollars in offshore oil drilling rights today signals the official start of what could eventually become more than a $170 billion windfall for a few Gulf Coast states over the next 60 years, and a serious reduction in federal funds needed for programs affecting all fifty states.The Republican Congress, as one of its last acts, rammed through legislation in December of 2006 that will begin taking effect on leases issued today in the Gulf of Mexico. Proceeds from oil drilling in the sold areas will be diverted away from the federal treasury to Alabama, Louisiana, Mississippi and Texas. The funds will go to the states at a 37.5 percent clip initially, regardless of the price of the lease sale, and will increase in percentage over time, totaling more than $170 billion over the next ten years.
“This is the king of all earmarks, a giveaway that keeps on giving,” said Rep. Edward J. Markey (D-Mass.), Chairman of the Select Committee on Energy Independence and Global Warming.
With increasing oil prices, the figure could reach even higher, resulting in windfall profits for the states. The states claim they need the funds for infrastructure development and wetlands restoration from the oil and gas activities in the Gulf of Mexico, and any such claims should be resolved as all other claims are: through the Congressional appropriations process. By circumventing that process, the states could end up claiming more money than is needed for those projects, taking away funds from the other 46 states and the U.S. taxpayers entitled to this federal money.
“As the price of oil goes up, these four states will reap windfall profits from this deal, giving the other forty six states the short shrift when it comes time to fund important programs,” said Rep. Markey. “The fifty stars on the flag are all the same size. It’s time we end this entitlement program that takes the united out of the United States.”
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PLEASE NOTE: The House Select Committee on Energy Independence and Global Warming was created to explore American clean energy solutions that end our reliance on foreign oil and reduce carbon pollution.
The Select Committee was active during the 110th and 111th Congresses. This is an archived version of the website, to ensure that the public has ongoing access to the Select Committee record. This website, including external links, will not be updated after Jan. 3rd, 2010.
The Select Committee was active during the 110th and 111th Congresses. This is an archived version of the website, to ensure that the public has ongoing access to the Select Committee record. This website, including external links, will not be updated after Jan. 3rd, 2010.
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