Missouri Senator Claire McCaskill says she’s disappointed with Tuesday’s vote to block consideration of a measure that would repeal two billion dollars worth of tax incentives for the nation’s five largest oil companies.
In a conference call with radio reporters Wednesday, McCaskill debunked the notion that prices would go up and big-oil would take its business elsewhere if the incentives are repealed.
“And, anyone who wants to believe that taking away two billion of their $125B in profits, that belongs to the United States taxpayers, that that’s going to send them packing, it’s not a credible argument and it has been debunked by just about every source out there that’s taken a look at it” McCaskill said.
McCaskill is also taking American refiners to task for their skyrocketing profit margins. She says refining capacity is currently at about 80% in the US. She says that’s 10% below last year’s figure, and well below where it should be to lower prices at the pump.
“Last year at this time, the oil companies were refining at close to 90% capacity, and today they are down near 80% capacity, even though there is plenty of crude oil for them to refine” she asserted. “If this is a decision that’s being made to purposely hold back supply, obviously this is something that the American people should have a say about.”
McCaskill was one of four Senate Democrats to sign a letter mailed to FTC Chairman Jon Leibowitz. The letter asks for an FTC investigation into allegations of possible price fixing among American refiners.
The others who signed the letter were Senate Majority Leader Harry Reid (D-Nevada), Senator Charles Schumer (D-New York) and Senator Patty Murray (D-Washington) We have the full text of the letter posted here.
Another issue raised in the letter involved increasing exports of gasoline from U.S. refineries. McCaskill says those gasoline exports could increase the supply here, and help drive down prices at the pump.
“The interesting thing about that is that they’re exporting from domestically-produced oil, so, if this is just about drilling more, then why are they sending more gasoline to Mexico and South America than they were a year ago.”
Pump prices are going down this week. In St Joseph, and across Missouri, the average price for a gallon of unleaded is about $3.77. The nationwide average, according to AAA, is just over $3.92 per gallon.