Durbin Applauds Passage of Oil and Gas Industry Antitrust Act of 2006

DURBIN APPLAUDS PASSAGE OF OIL AND GAS INDUSTRY ANTITRUST ACT OF 2006

On the same day that ExxonMobil announced First Quarter profits of $8.4 billion, U.S. Senator Dick Durbin (D-IL) today voted in favor of legislation to make it illegal for oil giants to choke supplies in order to drive up prices at the pump. The bill, which was approved by the Judiciary Committee, now awaits action by the full Senate. Durbin is a member of the Judiciary Committee.

"The Bush Administration has been asleep at the wheel and the White House has failed to demonstrate real leadership when it comes to protecting consumers from being gouged at the gas pump," Durbin said. "When ExxonMobil and other oil giants continue to realize billions of dollars of profits at the expense of millions of American families, it's time for Congress to step up."

Durbin, who is an original co-sponsor of the Oil and Gas Industry Antitrust Act of 2006, called the bipartisan bill an important step that could offer future protections to consumers. The bill would give the federal government additional tools to clamp down on oil companies that manipulate the market by unilaterally withholding supplies to increase prices or create shortages.

Durbin said that the bill would also empower the federal government to prosecute foreign energy cartels, like OPEC, that act illegally under American antitrust laws in collusion to limit production or set prices. The bill would also update various antitrust laws to require enhanced scrutiny and tough restrictions on petroleum industry mergers.

Durbin noted that is it also critical for Congress to provide immediate help to consumers and farmers. Durbin called for Congressional action on his legislation to help channel record oil company profits back to American families. Durbin's Windfall Profits Tax bill would impose an excise tax on integrated oil and gas companies equal to 50% of their profits over a baseline price of $40 per barrel of oil. The $40 baseline was established by taking the average price of oil in the year 2004. In 2004, oil and gas companies were already realizing record profits.

Under Durbin's bill, the revenues would be used to fund a consumer rebate, provide additional resources to fully fund the Low Income Home Energy Assistance Program, provide for a manufacturers incentive to improve the fuel economy of automobiles and provide additional revenue to the Highway Trust Fund to improve roadways and mass transit.

http://durbin.senate.gov/record.cfm?id=254897&&