-------------------------
Via Workers World News Service
Reprinted from the May 31, 2001
issue of Workers World newspaper
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DELIGHTED WITH ENERGY GIVEAWAYS: OIL LOBBYISTS 
SHOWER BUSH WITH MILLIONS

By Deirdre Griswold

Is there a real energy crisis?

The Bush administration has unveiled a broad energy program 
that would weaken environmental rules on air pollution, 
allow big business to drill for oil on ecologically fragile 
public lands, and revitalize the nuclear power industry. All 
this, it says, must be done because of critical energy 
shortages.

Just announcing a plan like this is a public relations move 
to prepare the public for higher prices and lower 
environmental standards. It was greeted with unconcealed 
delight by the gas and oil industry, which is already 
enjoying a banner profit year.

As a token of their appreciation, corporate lobbyists for 
the industry feted Bush May 22 at a black-tie fund-raising 
dinner in Washington that netted $23.9 million for the 
Republican Party. Among the dinner's sponsors were Red 
Cavaney, president of the American Petroleum Institute; 
Richard Shelby, executive vice president of the American Gas 
Association; Bud Albright, lobbyist for Reliant Energy; and 
Robert S. Aiken, vice president for federal affairs of 
Pinnacle West, which owns a major electrical utility in 
Arizona.

Other industries were there, too, of course. Bush has many 
friends in the corporate world who are cheering his 
legislation that lowers their taxes by a trillion dollars 
over the next 10 years. And there was Philip Morris, which 
pledged to raise $250,000 for the dinner. The tobacco giant 
appears encouraged by reports that the government may drop a 
$100-billion racketeering lawsuit against the industry.

Of course, the fact that this Bush administration is as 
dependent on the oil and gas industry as Bush senior's does 
not prove there is no energy crisis. But it has caused many 
even in the capitalist media to debate the premises behind 
the administration's energy plan, written by a task force 
headed by Vice President Richard Cheney.

It is not difficult to find articles in the capitalist press 
questioning the crisis.

They point out that while motorists and truckers may face 
higher prices at the pump this summer, gasoline prices in 
constant dollars are actually lower today than in the 1980s. 
Those who were lured into buying gas-guzzling vehicles when 
gasoline prices were exceptionally low may have a hard time, 
especially if they are also hit by the economic slowdown--
but they should blame the absence of fuel economy standards.

Of course, there is a crisis in most of California involving 
the delivery of electricity--but it is widely understood 
that this crisis has nothing to do with overall shortages. 
It is a direct result of deregulation, and has been 
accompanied by fabulous profits for power companies even as 
the utilities that buy their power are facing bankruptcy. 
Often the same interests control the power companies and the 
utilities.

Where there has been no deregulation of the power industry--
in Los Angeles, for example--there have been no power 
reductions, no skyrocketing prices, no crisis.

But if the energy companies want a crisis, there will be 
one. That's the lesson of the last 30 years.

There are many decisions they can make that will lead to 
shortages down the line--and shortages can then be parlayed
into higher prices and higher profits. We can expect that 
more and more people will be affected by utility shutoffs, 
power outages and reductions, super-high fuel prices and 
possibly long lines at the pumps.

OIL MEANS MONOPOLY

Of all the industries in this country, oil has been the most 
monopolized, beginning with the rise of John D. 
Rockefeller's Standard Oil Co. After this monopoly was 
supposedly broken up in 1911, the dividing of markets and 
collusion over pricing and supplies continued among its 
heirs.

By the end of World War II, the entire world's oil supply 
was in the tight grip of a handful of imperialist companies, 
most of them in the U.S. They became known as the Seven 
Sisters: British Petroleum, Royal Dutch Shell and five U.S. 
corporations. The five were Exxon (Standard Oil of New 
Jersey), Chevron (Standard Oil of California), Mobil, Gulf 
and Texaco.

The tendency to further monopoly has today reduced the five 
to three: ExxonMobil (merged in 1999), Chevron (merged with 
Gulf in 1984), and Texaco.

Texaco absorbed Getty, one of the so-called independents, in 
1984. Conoco, now the fourth-largest U.S. oil company, was 
taken over by the DuPonts. Other important players are 
Occidental and Phillips.

Whether part of that original cartel or considered 
independent, the big oil and gas companies are raking in the 
money. ExxonMobil recently announced that its first-quarter 
earnings had increased by 51 percent. Conoco's earnings rose 
58 percent in the same period. Occidental Petroleum's 
profits tripled last year, based largely on higher prices.

Even as the industry cries shortages, Wall Street analysts 
say that energy stocks are "buzzing."

Enron is the world's largest corporation handling the 
distribution of energy. It has built natural gas pipelines 
from central Asia to South America. Its chair, Kenneth Lay, 
was a member of the team advising Sen. Spencer Abraham 
before he became Bush's Energy Secretary. Enron is one of 
the power wholesalers that together raked in $6.2 billion 
this year selling natural gas to California utilities at 
prices far above normal.

NEITHER PARTY WILL FIGHT THE POWER BARONS

These are the companies that now treat the natural energy 
resources of the United States and much of the world as 
their own personal property. What are the working people to 
do about this wholesale theft of what should belong to 
everyone? How can the political and economic power of these 
modern-day pirates be broken?

Some see the open connection of the Bushes to the energy 
corporations as reason to focus on getting the Democrats 
back in. But that is a dead end. The energy monopolies have 
thrived for over a hundred years, under both Democrats and 
Republi cans. The two big "energy crises" of recent times--
in 1973-74 and again in 1979--took place under Republican 
Richard Nixon and Democrat Jimmy Carter. Both times the 
capitalist government would not or could not impede the 
aggressive campaign of the energy companies to raise prices 
and dismantle government controls.

The main deterrent was the enraged mass response to price 
hikes. In 1974 and again in 1979, independent truckers 
barricaded roads and bridges and fought the state police in 
protest. Price increases in 1974 heightened mass anger at 
the Vietnam War; the people knew that the Pentagon was 
sending millions of gallons of fuel a day to Vietnam for its 
ships, planes and land vehicles. Fuel price protests 
hastened Nixon's downfall.

Even before this current "crisis" really gets underway, an 
anti-corporate movement is growing among the young. The 
question that is sure to be discussed and debated by broader 
and broader circles is, what is to be done? How can there be 
sufficient energy for the people without environmental 
destruction? How can people's needs be met without the 
plunder of the Third World, without wars of aggression in 
the Middle East and elsewhere, without irreversible global 
warming?

The only answer is to take control of these rich resources 
away from the profit-hungry corporations. Only then can 
human considerations drive an energy plan.

But who will take over? The government that is nothing but 
stooges of the giant corporations? Would Bush and Co., or 
any other capitalist party administration, be anything 
except administrators for the billionaires?

Here we think it highly appropriate to quote at some length 
from an article by Sam Marcy that appeared in this newspaper 
on June 29, 1979. Written a few months after the Three-Mile 
Island disaster forced big business to pull back from their 
plans to expand nuclear power, the article took up the 
question "What to do about the gas/oil crisis," which was 
wracking the country at the time.

WHAT KIND OF A TAKEOVER?

Marcy wrote: "To seriously deal with the crisis it is 
necessary to think in terms of a take over of the oil 
companies.... The idea of a takeover immediately brings to 
mind the general conception of a nationalization by the 
government. In both European and U.S. history, 
nationalization has turned out to be not a true takeover by 
the people but a change of ownership from the oil companies 
to the capitalist government. ...

"It is necessary to present the question of a takeover of 
the oil industry in an entirely new way, based upon a set of 
wholly new circumstances in which the [U.S.] working class 
finds itself. The idea of taking over the oil industry from 
the monopolies would find favor with the majority of the 
working class and the oppressed people. ...

"[However] under the circumstances of contemporary [U.S.] 
capitalist politics, there is probably as great a distrust 
of the capitalist politicians as there is of the oil 
companies.

"The question is how to implement an approach for a takeover 
of the oil industry which would not necessarily be a 
transfer from the oil monopolies to the capitalist 
government, for the latter would merely administer the oil 
industry and deposit the profits in the form of compensation 
into the same coffers as before. ...

"The first stage is to arouse widespread public sentiment, 
especially among the workers, on the need to divest the oil 
companies of the ownership of the oil industry and turn it 
over to the public, to declare it public property. ...

"The second part deals with the creation of popular 
committees from the masses who can employ whatever 
technicians and managerial staffs are necessary to run the 
industry. ...

"Too much detail for such a plan is of no practical use. 
Such details are easily developed once mass enthusiasm 
develops for the plan, once the creative initiative of the 
people asserts itself and proves its capabilities in 
contrast to the soulless governmental bureaucracy which 
shuns all interventions by the masses.

"What is needed at the start is to frame a resolution, 
printed and circulated in the millions, in the form of a 
petition by the people which asks that Congress intervene in 
the present crisis and that the form of its intervention 
should be the swift and speedy enactment of a law which 
divests the oil companies of all ownership and invests it in 
the people of the United States. ...

"Whether it is practical or not depends on whether the 
masses can be aroused to its necessity."

Arousing the mass of workers to understand that the energy 
companies are not omnipotent, that the people have every 
right and ability to intervene against shutoffs, power 
outages and soaring prices is the first step.

- END -

(Copyright Workers World Service: Everyone is permitted to 
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