Obama: End $4B in Yearly Taxpayer Subsidies to Big Oil

Reiterating that the U.S. cannot drill itself out of foreign oil dependency and higher gas prices, President Obama said improved fuel efficiency standards and ending $4 billion in subsidies to U.S. oil companies are two solutions.
Federal officials plan to require average fuel mileage of 54.5 miles per gallon for cars and light trucks by 2025.
They say that would net a consumer $3,000 to $4,400 in savings over the vehicle’s lifetime – in addition to the vital benefits the new standard would bring to the environment
“That means folks will be able to fill up every two weeks instead of every week, saving the typical family more than $8,000 at the pump over time,” Obama said in his weekly address.  “That’s a big deal, especially as families are yet again feeling the pinch from rising gas prices.”
Obama is now vigorously pushing for an end to tax subsidies to oil companies, which he calls a “tax giveaway” to “companies making record profits.”
The president asked the public to e-mail, call or tweet their Congressional representative if they agree with halting the subsidies.
“Every year, $4 billion of your tax dollars go to subsidizing the oil industry,” Obama said. “These are the same companies making record profits – tens of billions of dollars a year.  I don’t think oil companies need more corporate welfare. “
In his address, Obama touted that the nation is “producing more oil here at home than at any time in the last eight years.”
Republicans criticized the president for taking credit for increased oil production, while opposing the TransCanada Corp’s (TRP) Keystone XL pipeline, which would carry oil from Canada to U.S. Gulf Coast refineries.
They contend Obama has restricted drilling in some offshore locations and has proposed regulations that would hurt other domestic sources of energy.

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