2008 CO Senate Debates: on Energy & Oil

Bob Schaffer: Federal government rakes in funds from high energy prices

SCHAFFER: I cast votes in favor of an energy policy. The dramatic increase in revenue for the federal government right now is partially a function of the dramatic increase in energy prices. The energy industry’s marginal profit rate is about 8% right now, so as the price climbs, that 8% then creates an extraordinary amount of profit. That profit is taxed, and the windfall to the federal government as result of high energy prices is what the government is raking in right now and not spending it particularly well.

Q: When you use the phrase “on the backs of the energy companies,” you sound like they’re poor, beleaguered companies that the government is taking advantage of.

SCHAFFER: Oh, absolutely not. But the federal government is raking in funds as a result of this energy crisis. That’s one of the possible motivations why people in Washington, like Mark, have fought to drive energy prices up

Mark Udall: We need comprehensive plan, not just oil & gas development

UDALL: That’s laughable. Congressman Schaffer’s an oil and gas executive. Of course he’s going to take the side of the oil and gas industry. If you want maintenance of the existing energy policy we have in this country, which is focused on oil and gas development of fossil fuels, then you ought to hire Schaffer. If you want a comprehensive plan, if you want to throw the kitchen sink at this where we take a fresh look at nuclear and we develop clean coal supplies and we invest deeply in renewables and in conservation, we also drill responsibly, I’m going to be the senator that’s going to pursue that.