Edwards Campaign Press Release - Edwards Announces Plan To Take On Big Oil Companies To Fight Rising Home Heating Costs

Calls for immediate relief for families facing unaffordable home heating costs, highlighted proposals to take on big oil, halt global warming and build a new energy economy

Manchester, NH – Today, Senator John Edwards unveiled his proposals to take on big oil companies to fight rising home heating costs. At town hall meetings in Meredith and Rochester today, Edwards announced his plan to provide immediate relief for families facing unaffordable home heating costs and highlighted his proposals for taking on big oil and gas companies to halt global warming and build a new energy economy based on efficiency and renewable energy. As he prepares to visit New Horizons food bank in Manchester tomorrow, Edwards also emphasized the power that everyday Americans have to help families in their communities overcome the hardship of high home heating costs.

"New England families are facing skyrocketing home heating oil and gasoline prices – all to fuel massive profits for Big Oil," said Edwards. "As home heating oil prices are approaching a record-high, today families in New Hampshire are paying nearly three times as much as they did in 2000 for heating oil. Meanwhile, the top six oil companies have collected over $477 billion in profits over the past six years. Exxon Mobil, for example, earned $40 billion last year, the largest annual corporate profit in history.

"America's dependence on oil not only leaves families vulnerable to rising prices, but it compromises our national security and contributes to the crisis of global warming. We need to stand up to the big oil companies, increase the use of renewable energy, and create affordable choices for regular families."

Edwards believes immediate action is necessary to offer families relief from rising heating costs. Today, he called on Congress to release some of the nation's home heating and oil reserves and finally fully fund the Low-Income Home Energy Assistance Program (LIHEAP), which could help 20,000 more New Hampshire families. He also proposed more than doubling assistance for weatherization programs and called on neighbors to help weatherize the homes of vulnerable seniors this winter. Last winter, Edwards joined One Corps volunteers from across the country to help weatherize seniors' homes in the Northeast. Finally, he proposed helping states and non-profits offer low- or no-interest emergency loans so that squeezed families do not fall prey to high-cost lenders.

While in the short-term Washington should get families they help they need to meet rising costs, Edwards will also stand up to the oil and gas industry to bring down unreasonable prices. As president, he will investigate the anticompetitive actions of the oil industry; strengthen antitrust laws to make oil and gas companies liable for anticompetitive acts; reverse Enron-era deregulation of energy markets to restore transparency and oversight; end taxpayer subsidies for oil companies; and require oil companies to invest in clean reliable refineries.

To jumpstart our investment in the future and promote higher fuel efficiency, Edwards will create the $13 billion-a-year New Energy Economy Fund, financed by the sale of greenhouse gas pollution permits and the repeal of subsidies for oil companies. Among other investments, the Fund will: invest in weatherized homes and more efficient buildings and appliances; create new competition by supporting biofuels; and raise fuel economy standards and help U.S. automakers modernize.

For more information on Edwards plan, please see the "Taking on the Big Oil Companies to Fight Rising Home Heating Costs" paper attached below.

Helping Families with Rising Home Heating Costs

"American families are facing skyrocketing home heating oil and gasoline prices, while big oil companies earn massive profits. We need to stand up to the oil companies, increase the use of renewable energy, and create affordable choices for regular families." – John Edwards

America's reliance on oil leaves families vulnerable to rising prices, contributes to the crisis of global warming, and undermines our national security. Crude oil and home heating oil prices are now near an all-time record high. Families in New Hampshire are paying more than $3.00 a gallon for heating oil, up from $1.11 in 2000. Meanwhile, the top six oil companies have collected over $477 billion in profits over the past six years. Exxon Mobil earned $40 billion last year, the largest annual corporate profit in history. [EIA, 2007; EPI, 2007]

John Edwards has championed the need to take on big oil and gas companies to halt global warming and build a new energy economy based on efficiency and renewable energy. Today, Edwards announced his plan to provide immediate relief for families facing unaffordable home heating costs. He called on Congress to release some of the nation's home heating and oil reserves to bring down prices and finally fully fund the Low-Income Home Energy Assistance Program, which could help more than 3 million more families, including 20,000 in New Hampshire. He also proposed more than doubling assistance for weatherization programs and called on neighbors to help weatherize the homes of vulnerable seniors this winter. Finally, he proposed helping states and non-profits offer low- or no-interest emergency loans so that squeezed families do not fall prey to high-cost lenders.

Immediate Relief for Families Facing Rising Heating Costs

John Edwards believes immediate action is necessary to offer families relief from rising heating costs. Today, he called on President Bush, Congress, and state leaders to:

Release Supply from National Oil Reserves

The U.S. government holds 700 million barrels of crude oil and 2 million barrels of home heating oil in reserve to protect consumers. However, even though the price of oil passed $99 a barrel last Wednesday, President Bush has no plans to release oil from these reserves. The reserves were used during the first Iraq War in 1991, during a period of low inventory in 2000, and after Katrina in 2005. Edwards called on Bush to release a portion of both the home heating oil and crude oil reserves. Releasing oil would bring down prices by increasing supply and by demonstrating a willingness to keep oil prices from rising indefinitely. [EIA, 2007; AP, 11/21/2007; Boston Globe, 11/3/2007]

Fully Fund the Low-Income Home Energy Assistance Program

The families who receive fuel assistance are typically parents of young children, seniors and people with disabilities. They spend 15 percent of their incomes on home energy alone. President Bush has proposed cutting the program by nearly half. Today, Edwards called on Congress to finally fully fund LIHEAP to serve more than 3 million more Americans, including more than 20,000 from New Hampshire. [NEADA, 2007]

Weatherize Thousands of Homes

Weatherization can cut home heating costs by 23 percent, but only about one out of every eight eligible New Hampshire families who applied received weatherization help in 2005. As part of his plan to help regular families conserve energy, Edwards will reverse the Bush cuts to the weatherization program and instead double the budget to $500 million a year. He has also called on neighbors and volunteers to help families, particularly seniors, weatherize their homes – as he and One Corps volunteers did last winter. [NH OEP, 2007]

Support Emergency Loans for Families

Half of families report that they live paycheck to paycheck so big jumps in utility bills can leave families with few options. Edwards believes that families shouldn't have to turn to high-interest credit cards or payday loans shops to pay their heating bills. He proposed helping non-profits and states administer low- or no-interest emergency loans as alternatives to high-cost credit.

Standing Up to the Oil and Gas Industry to Bring Down Prices

After getting families the help they need now, John Edwards will stand up to the oil and gas industry to bring down unreasonable prices. As president, he will:

Investigate the Anticompetitive Actions of the Oil Industry

A wave of mergers in recent decades has led to a consolidated oil industry as 21 companies have combined into eight. Vertically integrated companies like Exxon Mobil own every step of the production process – from extraction to refining to sale at the pump – enabling them to foreclose competition. President Bush, Vice President Cheney, and the chair of the Federal Trade Commission are all former oil industry insiders. Edwards will ask the Justice Department to investigate the consolidation of the oil industry, the causes of higher petroleum prices, and solutions to the problem. [GAO, 2004, 2007; Kimmelman, Plunkett, Mierzwinski, 2004; Slocum, 2001]

Strengthen Antitrust Laws

In 2001, the FTC found evidence of oil companies intentionally withholding supply to raise prices, but could not prosecute this anticompetitive activity because there was no evidence of an agreement among rivals. Edwards called on Congress to modernize the Clayton Antitrust Act to make oil and gas companies liable for unilateral anticompetitive acts – such as withholding supply in order to raise prices – even without an agreement. [FTC, 2001]

Reverse Enron-Era Deregulation of Energy Markets

Oil giant BP was fined $300 million for manipulating the propane futures market in 2004. Since the deregulation of the commodity futures trading market in 2000, oil markets have been vulnerable to manipulation and speculation. Edwards will restore basic transparency and oversight, such as requiring public reporting of large trades, to help identify and deter market manipulation. [U.S. Senate Committee on Homeland Security and Government Affairs, 2004; CFTC, 2007; N.Y. Times, 10/24/2007]

Cut "Carbon Welfare" for Oil Companies

The oil industry – which has written our nation's energy policy for years – receives $2 billion a year in tax breaks for drilling they would undertake anyway. It also collects $1 billion a year in sweetheart oil leases in public waters. Edwards will repeal these subsidies and reinvest the savings in affordable, clean, and renewable energy.

Require Oil Companies to Invest in Clean, Reliable Refineries

Oil refining profits are up 158 percent since 1999, but overloaded refineries running at nearly 90 percent capacity have left the gasoline supply vulnerable to disruptions and price spikes. New investments to reduce harmful emissions can also increase productivity, safety, and reliability. Edwards called on states to enforce Clean Air Act standards to require oil companies to modernize their refineries, making them cleaner and more reliable. [Slocum, 2007; Newsday, 5/7/07; N.Y. Times, 1/17/2007; GAO, 2007; EPA, 2006]

Building a New Energy Economy with Renewable Fuels and Energy Efficiency

America's rising demand for fossil fuels and carbon-based electricity raises prices, forces it to rely on unstable and hostile countries and contributes to the crisis of global warming. John Edwards' plan to promote higher fuel efficiency and freeze our electricity use at today's levels for a decade will lower demand. Edwards believes that we can cut oil imports by 7.5 million barrels a day by 2025 – nearly a third of the oil projected to be used in 2025 – and get us on a path to be virtually petroleum-free within a generation.

To jumpstart our investment in the future, Edwards will create the $13 billion-a-year New Energy Economy Fund, financed by the sale of greenhouse gas pollution permits and the repeal of subsidies for oil companies. Among other investments, the Fund will:

Invest in Weatherized Homes and More Efficient Buildings and Appliances

Upgrading home furnaces, ducts, windows, and insulation can cut energy bills by 20 to 40 percent, year after year. However, the existing Department of Energy weatherization program reaches only 100,000 homes a year while more than 28 million remain eligible. Similarly, appliance efficiency standards have greatly reduced the energy use of refrigerators and air conditioners, but better use of the Energy Star program could save even more. Edwards will reverse the Bush budget cuts to the weatherization program and instead expand it to $500 million a year. He will call on states to create updated energy building codes. Finally, he will raise federal efficiency standards for appliances and maximize the potential of the Energy Star program by working to get more efficient appliances in stores and educating buyers and builders. [Reicher, 2007; ACEEE 2005]

Create New Competition by Supporting Biofuels

Millions of cars already run on both gasoline and the E85 blend of ethanol and gasoline, but only about 600 of the nation's 169,000 gas stations have E85 pumps. Edwards will require oil companies to install ethanol pumps at 25 percent of their stations and require all new cars sold after 2010 to run on either gasoline or biofuels. He will also set a national goal of 65 billion gallons of ethanol a year by 2025 and invest in new, sustainable and efficient methods of producing and using biofuels. [RAND, 2006; DOE, 2005; USDA, 2005]

Raise Fuel Economy Standards and Help U.S. Automakers Modernize

Everyone should be able to drive the car, truck, or SUV of their choice and still enjoy high fuel economy, and American automakers have the ingenuity to lead the world in building the clean, safe, economical cars of the future. Edwards will raise fuel-economy standards to 40 miles per gallon by 2016 and provide $1 billion a year to help U.S. automakers advance and apply the latest technology, including biofuels, hybrid and electric cars, hydrogen fuel cells, ultra-light materials, and drive train improvements.