Blood for Oil

Gas-Price Fight Looms in Congress

Congress can expect a huge debate over the oil industry when it returns next week: The fight revolves around whether or not to cut off the subsidies and tax breaks for oil companies. President Obama said in a letter to Congress last week that he hopes to repeal the $4 billion a year in tax incentives for domestic oil and gas production. Republicans say this will raise the cost of production and the gas prices around the country. Oil industries are currently seeing near-record profits: Exxon Mobil earned $10.7 billion in the first three months of the year. Each party will try to portray the other negatively, either as a party hostile to domestic energy production or as a party in league with the oil companies. There was a brief glimmer of potential bipartisanship to resolve the issue last week, when House Speaker John Boehner said on ABC News that oil companies should “pay their fair share in taxes.” But he has since backtracked, and nows says raising any taxes would hinder the economic recovery.