If passed, the bill would have eliminated $12 billion in subsidies for production of oil within the U.S. and cut $6 billion in credits for taxes that oil companies pay to foreign governments. Finally, the bill would have put an end to oil companies writing off some drilling and development costs.
According to the Huffington Post, Republicans say that the bill unfairly singles out oil companies and would hinder their ability to hire American workers, thus leading to reduced oil production and increased dependence on foreign oil. Democrats argue that subsidies are unnecessary given that oil companies typically report profits in the multi-billion dollar range.
Three Democrats – Mary Landrieu (D-LA, pictured), Mark Begich (D-AK), and Ben Nelson (D-NE) – voted with Republicans to maintain the subsidies, while Olympia Snowe (R-ME) and Susan Collins (R-ME) sided with the Democrats.
As this chart – based on data from the Center for Responsive Politics – shows, the 48 senators who voted with the oil industry received over $21 million in oil-related contributions, while the 52 senators who voted to eliminate subsidies received a mere $5.4 million. Looks like money talks.