Drilling For Influence

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http://www.alternet.org/election04/19287/

 

Drilling For Influence

By J.R. Pegg, Environment News Service

Posted on July 20, 2004, Printed on July 21, 2004

http://www.alternet.org/story/19287/

 

The oil and gas industry has pumped some $440 million

into federal political campaigns and lobbying

activities during the past six years, according to a

new report released by the Center for Public

Integrity.

 

The study gives added fuel to critics who believe the

industry has bought undue influence throughout the

federal government, in particular within the offices

of Bush administration officials.

 

Republican candidates and organizations received more

than 70 percent of the $67 million the industry has

given in federal campaign contributions since 1998 –

with President George W. Bush leading the way.

 

The former Texas oilman turned President received some

$1.7 million in industry contributions, more than

three times the amount given to any other beneficiary

of the industry's support.

 

The study, " The Politics of Oil, " is the first of a

series by the nonprofit research group that aims to

identify the size and scope of the international oil

and gas industry and measure its influence in the

halls of government worldwide.

 

Charles Lewis, executive director of the nonpartisan

Center for Public Integrity, said the group has no axe

to grind with President Bush, but the close ties

between the industry and the administration hardly

came as a surprise.

 

" No industry in the history of the Republic has had

former company executives sitting in the White House

as President and Vice President, along with other very

senior leadership positions, " Lewis said.

 

Including Bush, Vice President Dick Cheney, National

Security Advisor Condoleezza Rice and Commerce

Secretary Donald Evans, more than 40 members of the

Bush administration have worked directly for or with

the oil and gas industry.

 

The report does not hone in on specific policies that

may have been affected by the oil and gas industry's

influence, but Lewis told reporters " it is rather

apparent what the influence has been able to achieve. "

 

The administration has pushed a host of industry

proposals, including an national energy policy laden

with subsidies for oil and gas development and several

regulations to relax federal rules for drilling on

federal lands.

 

The White House has also resisted calls to raise fuel

economy standards or to cut fossil fuel use in order

to combat global warming.

 

The Bush campaign did not comment on the report.

 

Second and third on the list of politicians who have

received the most support from the industry are Texas

Republicans Joe Barton, who chairs the House Energy

and Commerce Committee, and House Majority Leader Tom

Delay.

 

Barton has collected $574,000 from the oil and gas

industry since 1998; Delay has received just under

$500,000 in campaign cash from the industry.

 

The only Democrat in the top 10 is Louisiana Senator

Mary Landrieu, who has been given $343,924 in campaign

contributions by oil and gas companies since 1998.

 

The report lists ChevronTexaco as the leading

contributor to recent federal campaigns. The oil giant

has given some $2 million to the Republican Party and

$45,600 to the Bush campaign in the past six years,

along with some $790,000 to the Democratic Party.

 

ExxonMobil is the industry's leader in lobbying

expenditures, spending some $55 million, followed by

ChevronTexaco at $32 million.

 

It is not hard to see why the industry is making such

an investment – it has a clear case for wanting to

sustain the nation's thirst for oil and gas. In 2003,

the United States guzzled more than 25 percent of the

world's total oil and gas production.

 

The Center for Public Integrity report says the

industry exerts its influence in " other, less obvious

ways " and cites the role of the National Petroleum

Council and conservative, nonprofit organizations.

 

Formed by President Harry Truman after World War II,

the National Petroleum Council was designed to provide

the government with the industry's expertise on oil

and gas issues.

 

The recommendations of the council during the past six

years have closely mirrored the requests of industry

lobbyists, according to the report, and at least 10

members of the council are Bush Pioneers – individuals

who have raised more than $100,000 for the President's

election campaigns.

 

Few oil companies can match the influence wielded by

Koch Industries, according to the Center for Public

Integrity. With $40 billion in annual revenues, the

privately held conglomerate is the leading campaign

contributor for 2004 and the fourth biggest oil and

gas industry giver since 1998.

 

Koch's influence is reflected in its support of some

of the nation's most prominent conservative and

libertarian think tanks and advocacy groups. These

organizations, including the Cato Institute, the

Reason Foundation, Citizens for a Sound Economy, and

the Federalist Society, have become Washington

mainstays and vocal advocates for the deregulation and

minimal regulation favored by oil and gas companies.

 

Lewis said one surprising finding in the report was

the extent to which U.S. oil and gas companies have

re-incorporated in tax haven countries. The study

uncovered more than 882 subsidiaries of U.S. oil and

gas companies located in tax havens including the

Cayman Islands, Bermuda, Panama, the British Virgin

Islands and Liechtenstein.

 

" The entire rest of the world had just 311 such

subsidiaries, " Lewis said.

 

At present, about 84 percent of the Federal oil and

gas revenues are produced from leases located on the

Outer Continental Shelf.

© 2004 Independent Media Institute. All rights

reserved.

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