Bloomberg News

Obama to Urge Congress to End Oil, Natural Gas Subsides

March 29, 2012

President Barack Obama will renew a call to Congress today to end oil and natural gas subsidies of $4 billion a year and divert those tax dollars to clean-energy fuels.

Obama’s remarks in the White House Rose Garden are scheduled for 10:45 a.m. Washington time.

Obama will urge members of Congress to side with the American people instead of oil and gas companies making record profits, according to an administration official, who spoke anonymously in order to preview Obama’s remarks.

The president will call it a simple choice, according to an e-mail from the official highlighting Obama’s prepared remarks. The three largest U.S. oil companies in 2011 made a combined profit of more than $80 billion, or more than $200 million per day, according to the e-mail.

The Senate plans to vote today on repealing the tax breaks. In his Feb. 13 budget, Obama said existing tax breaks for the oil and natural gas companies amount to an unwarranted “preference” of these industries over others.

Ending such breaks would reduce the deficit by $41 billion over a decade, the budget said.

To contact the reporter on this story: Roger Runningen in Washington at rrunningen@bloomberg.net

To contact the editor responsible for this story: Steven Komarow at skomarow1@bloomberg.net


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