Oil Change International

Exposing the true costs of fossil fuels

“End Oil Aid” Bill introduced

Environmental organizations today applauded Rep. Maurice Hinchey (D-NY) for introducing legislation that seeks to end subsidies for the international operations of oil companies. The “End Oil Aid” bill, introduced yesterday, calls on international financial institutions including the World Bank, Export Import Bank and Overseas Private Investment Corporation to stop financing oil and gas projects.

“Oil aid not only wastes taxpayer dollars, it supports projects that can fuel corruption and conflict in developing countries and cause irreversible social and environmental impacts on the local communities there,” said Jennifer Kalafut, Campaign Coordinator at Oil Change International.

“Every year American taxpayers commit billions to financial institutions like the World Bank, which in turn lavish subsidies on the same oil companies who are earning record profits while fueling global warming,” said David Waskow, International Program Director at Friends of the Earth U.S. “We congratulate Congressman Hinchey on taking a long overdue step to end the scandal of ‘oil aid’”

Each year U.S. agencies such as the Export-Import Bank (Ex-Im) along with international financial institutions like the World Bank provide financial support worth billions of dollars in the oil and gas industry. In 2005, Ex-Im authorized $1.5 billion in financing for projects in the oil, gas and petrochemicals sector. And according to the Bank Information Center, support for oil companies by the International Finance Corporation—the World Bank’s private sector arm—skyrocketed by 77 percent between 2005 and 2006.

Bruce Rich, International Program Director at Environmental Defense, praised Congressman Hinchey’s bill as a “path-breaking initiative to end perverse policies that, in the words of Sir Nicholas Stern, former chief World Bank economist, and head Advisor to the United Kingdom Government on the Economics of Climate Change and Development, ‘distort the market in favor of existing fossil fuel technologies’ as well as reduce the incentive to develop innovative climate friendly energy sources.”

“We must combat global warming by helping put countries around the world on a path toward a clean energy future, but oil aid does the exact opposite,” said Waskow. “Combustion of oil and gas causes more than a third of global greenhouse gas emissions, fueling a climate crisis whose impacts will be felt most severely in poor countries.”

See EndOilAid.org for more info

Comments (12)

  1. Sandra Couch says:

    America needs to get the hell out of Iraq & quit worrying about the damn oil there. America needs to stop using oil and start using corn, soy, wheat, electricity, etc for the fuel sources of our vehicles. America needs to start making vehicles more fuel efficient to use less fuel.

    Oil companies need to stop trying to drill in new or more places which is restricting and endangering our wildlife and their habitats for survival. Oil companies need to find other purposes of oil rather than in vehicles producing pollutants into the air. Oil companies need to stop pushing their factory wastes into the air and into the water and into the ground.

  2. Arthur Deckard says:

    Stop all subsidies to oil company’s.

  3. Mary Madigan says:

    We have spend so much time and money on Oil. We need to look to the future with renewables. Funding Oil is a waste of time and money this planet can not afford. Stop it now.

  4. June Canoles says:

    It is time to move on from oil! We MUST find alternative fuels to keep
    the earth safe. Now is the day, now is the hour, now is the day!!!

  5. Gerry Peters says:

    Cheney is bought and paid for by the Oil companies. Impeach Cheney! He’s a liar and a traitor to true American needs and interests

  6. Carol DeLong says:

    I agree, Oil companies make too much profit and are hurting the midd;e class in America. They have done nothing to build new refineries. Seems they just “pocket” the money. America has become too greedy, and the oil companies lead America in greed!

  7. Ms. Patricia Law says:

    no corporate welfare for oil companies

  8. judi Merl says:

    We’ve subsidized OIL much too long already and developed no other alternate forms of clean energy. This is the time to stop funding OIL as they’re always quadrupling profits at our expense rather than keeping the world and its resources in the balance.

  9. Lydia Garvey says:

    You work for the American people, not industry. Do your job, otherwise is treason.
    Your attention to this most urgent matter would be much appreciated by all present & future generations of all species.

  10. Mary Clark says:

    If the oil companies want cheap oil, let them pay for private army to invade these oil producing nations–we are being ripped off by these multinationals. Our treasury is being depleted. We need our national guards home to protect our country.

  11. Mickey Pagoaga says:

    I’m interested in learning the status of proposed Iraqi policy to give a large percentage of the future rights to Iraqi oil to other entities; NOT the Iraqi people. The US of course had a very big influence on the proposal (I’m not sure what it was called). I heard of this on Air America about a month ago and have not heard anymore. I did understand that they did not wish to make this commonly known. Thanks.

  12. Nahanni Southern says:

    We do not need to rely on oil to sustain our communities,there are other cleaner ways to come to the same means.I strongly recomend that you take action to move to this cleaner healthier avenues for all of us and our children.