Today, BP announced a 2012 profit of nearly $12 billion, pushing total profits for the five largest oil companies to $119 billion for the year. As oil company profits approach record levels, drivers across America are facing gas prices that have surged 17 cents per gallon in just the last week, and 15 cents in Massachusetts. Rep. Ed Markey (D-Mass.), Ranking Democratic Member of the House Natural Resources Committee, called for the repeal of the roughly $7 billion in annual tax subsidies and free drilling the industry receives and said he would introduce legislation to do so.
"At a time when Big Oil is making $119 billion in profits and the American people are facing severe budget cuts to key programs as a result of the sequester, we can no longer afford to continue subsidizing this hugely profitable industry," said Rep. Markey. "Even as people in Massachusetts and around the nation are facing rising prices at the pump, they are also forced to continue paying Big Oil through subsidies in the tax code and free drilling on our public lands. I will soon be introducing legislation that will end Big Oil's subsidies. As Congress works to address the numerous fiscal challenges facing our nation, it is time for Republicans in Congress to join me to end Big Oil's subsidies, which is a common sense deficit reduction measure available right now."
According to AAA, the national average price for regular gasoline has jumped 17 cents in the last week to $3.53 per gallon. Prices at the pump have jumped 15 cents in Massachusetts over that time to $3.65 in Massachusetts. ExxonMobil, ConocoPhillips, Shell, and Chevron had previously announced $107 billion in 2012 profits.