What if you were in Vegas, and a friend told you there was a slot machine in the corner that was giving out $59 for every $1 that was put in? You’d think the machine was broken, and that it was rigged.
What if an investment advisor told you that he could get you $59 back for every $1 you gave him? That’s a 5,800 percent rate of return. Even Bernie Madoff only promised 10.5 percent. Obviously a scam, right?
Clearly this is a scam, but if you’re the oil, gas and coal industry, it’s legal and business as usual in Washington. For every $1 the industry spends on campaign contributions and lobbying in Washington, D.C., it gets back $59 in subsidies.
Here’s how it works:
- Amount the fossil fuel industry spent during the 111th Congress (2009 & 2010) on contributions to Congress’ campaigns—$25,794,747
- Oil and Gas lobbying total 2009—$175,454,820
- Oil and Gas lobbying total 2010—$146,032,543
- Total amount spent by Big Fossil in 111th Congress—$347,282,110
- 2009 amount given to fossils in federal subsidies—$8,910,440,000
- 2010 amount given to fossils in federal subsidies—$11,578,900,000
- Total amount given to fossils during 111th Congress—$20,489,340,000
- Divide the total subsidies by the total money spent by the industry and you get 59.
- $1 in. $59 out. That’s a 5,800 percent return on political investment. Not bad.
For more information, click here.
On Tuesday, Jan. 24, as Washington readies for the annual State of the Union address, more than 500 people in referee outfits are converging on Capitol Hill to “blow the whistle” on Congress. Why? Consider these two facts:
1. The American people believe (rightly) that Members of Congress are more responsive to their campaign donors than to their own constituents.
2. Americans of all affiliations clearly favor ending fossil fuel industry handouts.
Americans are sick of watching Congress receive bribes from the fossil fuel industry to vote for scams like the Keystone XL pipeline and fossil fuel subsidies. We see what’s happening, and we’re declaring it out of bounds and unsportsmanlike from this point forward.
The five biggest oil companies alone have made more than $1 trillion in profits over the last decade. It’s absurd that these companies still demand, and still receive, handouts from Congress paid for by taxpayers. This isn’t about energy or jobs—it’s about greed and corruption.
Listed below is some useful information about the cycle of dirty energy money corruption going on in Congress.
Money In—Campaign Finance
(All data is from Oil Change International’s Dirty Energy Money campaign which uses public data made available by the Center for Responsive Politics.)
Since 1999, the coal, oil and gas industries have shelled out more than $93 million to current members of Congress.
The trend is increasing with each election cycle, and current members of Congress took more than $25 million in campaign contributions from the oil, coal and gas industries in 2009-2010.
Through October of 2011, dirty energy interests had given this Congress $7.8 million in this cycle alone.
It is worth noting that direct contributions to candidates are only one way that the fossil fuel industry exerts influence. Substantially larger sums of money are mobilized by SuperPacs and other entities.
Each year that the president has submitted a budget, it has included eliminating $4 billion in annual subsidies to the dirty energy industry. Each year Congress has been unable to eliminate the subsidies.
In a vote in May of 2011, the reason was clear. Senators who voted to preserve subsidies took an average of five times more dirty energy money than those who voted to stop handouts to the oil industry.
Dirty Energy Money and the Keystone XL Pipeline
Earlier this month, American Petroleum Institute President Jack Gerard threatened President Obama with “huge political consequences” if he rejected the Keystone XL pipeline. This threat was unusual only because it was public, but the industry clearly continues to implicitly threaten all of our elected Representatives.
In July, the House of Representatives voted on the Keystone XL pipeline. Those Representatives who voted for the pipeline received 513 percent more from the oil and gas industry than those who voted against it.
In total, those who voted for the pipeline have received $10,922,161 from the oil and gas industry while those who voted against the pipeline have received only $717,552. In other words, those that voted for the pipeline have received 15 times more money from the oil and gas industry.
In December, the House held another vote with similar results. Members of Congress who supported the measure have received $41 million from the fossil fuel industry, while those who voted against the bill have received only about $8 million from oil, gas and coal interests.
An analysis by ThinkProgress of lobbying disclosure records for the first, second, and third quarters of 2011 suggests that the lobbying expenses of the 20 or more business and labor interests who backed the project was $60 million compared to $1 million by the seven organizations that actively opposed the measure.
TransCanada’s lobbying efforts alone over the first three quarters of 2011 totalled $920,000, just under the total amount spent by its opponents..
Political Return on Investment
Buying Congress is a great investment for the oil, gas and coal industries. During the last two year cycle, they put in $25 million, and they got out at least $4 billion annually—$8 billion. In other words, for every $1 that the fossil fuel industry invests in Congress, they get at least $320 back.
For more information, click here.