Big Oil Profits A Plus: Industry

 Big profits for Big Oil with gas at $4 a gallon are good for average Americans, if they own company stock, the industry said Tuesday.

The strength of oil and gas stocks in public pension funds and 401Ks have provided solid returns for retirees, according to a study commissioned by the American Petroleum Institute, the industry’s trade organization.

“Millions of American retirees rely on the income and capital growth these companies provide,” said Kyle Isakower, an API vice president.

The study aims to counter moves in Congress to eliminate $4 billion in tax breaks for the oil companies, who have seen their profits soar along with prices at the pump.

“It is important to for policy makers to understand who it is that gets hurt” when profits decline, Isakower said.

White House Press Secretary Jay Carney said that the big profits expected to be announced by the companies in their earnings reports later this week were evidence that they don’t need tax breaks.

“And while we certainly are glad to see companies making a profit, we do not believe that given the size of those profits -- record profits, in some cases -- that they need to be subsidized by the American taxpayer,” Carney said.

In a letter to the House and Senate leadership, President Obama seized on statements by House Speaker John Boehner (R-Ohio) suggesting that he would be open to cutting the subsidies.

Obama urged “immediate action to eliminate unwarranted tax breaks for the oil and gas industry” and divert the money to clean energy investment.

API chief economist John Felmy quickly fired back: