FACT SHEET | February 28, 2008

National Energy Index

Rising energy costs are squeezing the pocketbooks of middle-class families, straining an economy already under duress, and intensifying the flight of American taxpayer dollars to OPEC and other oil-producing countries. Senate Democrats are proud that the Energy Independence and Security Act raised fuel-efficiency standards for the first time in a generation, committed to dramatically increasing the production of biofuels, and began to reduce our nation's emission of greenhouse gases. But Senate Democrats will not be satisfied until Republicans finally join us to put consumers’ interests ahead of Big Oil’s profits, commit to growing new clean energy industries, create 21st Century jobs, and end our nation’s dangerous reliance on foreign sources of energy.

 

Oil Prices and Economic Impacts

 

Price of a barrel of oil, February 20, 2008:$100.86

Price of a barrel of oil, February 20, 2007:$58.32

Price of a barrel of oil, February 20, 2001:$28.60

Percentage increase in price between February 20, 2007 and

February 20, 2008:73%

Percentage increase in price between February 20, 2001 and

February 20, 2008:253%

Highest closing price for a barrel of oil in nominal dollars, set on

February 20, 2008:$100.86

Inflation-adjusted high in real dollars, set in
January 1981: $94.86

Estimated number of Americans who lose their jobs when the

price of oil increases by 10 percent:150,000

Estimated upward direct inflationary impact that a 10 percent

rise in oil prices has on the U.S. economy:0.8%

Estimated increase in disposable income
energy spending since the early 1990’s: $200 billion

Estimated 2008 transportation fuel costs for
the average family with children:$4,401
 

2001 transportation fuel costs for the
average family with children:$1,903
 

Percentage increase from 2001 to
anticipated 2008:131%

 

The Cost of America’s Addiction to Oil

 

Total amount spent on oil and petroleum
product imports in 2007:$318 billion

Total amount spent in 2006:$291 billion

Total amount spent in 2001:$101 billion

Percent increase from 2006 to 2007:9%

Percent increase from 2001 to 2007:172%

Amount sent to OPEC countries for
crude oil imports in 2007:$135 billion

Amount sent to OPEC countries for
crude oil imports in 2006:$107 billion

Amount sent to OPEC countries for
crude oil imports in 2001: $38 billion

Percent change from 2006 to 2007: 26%

Percent change from 2001 to 2007:255%

The 2007 record level of petroleum imports:$331 billion

The 2007 record petroleum deficit:$294 billion

Percentage of the total trade deficit
made up by the petroleum trade deficit:41%

 

Oil Profits

 

Amount of profits the five largest oil companies
have made during the
Bush/Cheney Administration: $525.3 billion

Amount of profits the five largest oil
companies made in 2007:$123.3 billion

Amount of profits the five largest oil
companies made in 2006:$117.6 billion

Amount of profits the five largest oil
companies made in 2001: $44.7 billion

Percent increase since 2001:176%

Number of citations that Exxon Mobil made
to “renewable energy” in its 2006 annual report:0

Cumulative number of Republican Senators
who voted against investing in renewable
energy incentives on three separate occasions: 43

Amount Senate Republicans have blocked
from being invested into advanced vehicle
technologies:$1.54 billion

Amount Senate Republicans have blocked
from being invested in biofuels: $4.16 billion

 

Renewable Energy and Energy Efficiency Job Creation

 

Job creation in 2006 from renewable energy
and energy efficiency industries: 8.5 million

Estimated job creation by 2030 from
renewable energy and energy efficiency
industries:40 million

Expected job loss if renewable energy
production and investment tax credits are
allowed to expire:116,000

Estimated solar job creation in 2007: 6,000

Estimated solar job creation in 2008: 12,000

States that could expect to lose more than
1,000 jobs from the expiration

of the production tax credit: TX, CO, IL, OR, MN, WA, IA, ND, OK, PA

Expected job creation from new
geothermal projects: 5,600

Gasoline Prices

Retail price of a gallon of regular gasoline,
February 25, 2008:$3.13

Retail price of a gallon of regular gasoline,
February 26, 2007:$2.38

Retail price of a gallon of regular gasoline,
January 2001: $1.47

Percentage increase in price between
January 2001 and February 25, 2008:113%

Percentage increase in price between
February 25, 2008 and February 26, 2007:32%

Highest price for regular gasoline in 2007:$3.22

Inflation-adjusted highest price for a gallon
of gasoline, set in 1981:$3.31

Average estimated gasoline price for 2008:$3.08

Weeks in 2001 when the price of gas was
at least $2 per gallon:0

Weeks in 2007 when the price of gas was
at least $2 per gallon:52

Weeks in 2007 when the price of gas was
at least $3 per gallon: 16

Weeks in 2008 that the price of gas was
at least $3 per gallon: 5

 

Sources

Oil Price and Economic Effects

1. EIA, Cushing, OK WTI spot price. (http://tonto.eia.doe.gov/dnav/pet/hist/rwtcm.htm)

2. Ibid.

3. Ibid.

4. Calculated from references 1 and 2.

5. Calculated from references 1 and 3.

6. EIA, Cushing, OK WTI spot price. (http://tonto.eia.doe.gov/dnav/pet/hist/rwtcm.htm)

7. Energy Information Administration, Real Petroleum Prices, http://www.eia.doe.gov/emeu/steo/pub/fsheets/real_prices.html

8. According to economists at the Federal Reserve Board and the Universities of Kent and Warwick in the United Kingdom, a 10 percent increase in the price of oil will likely increase the unemployment rate by 0.1 percent over the course of the following year. According to the Bureau of Labor Statistics, there are currently 151,000,000 non-farm payroll employees in the United States. Therefore, a 0.1 percent increase in unemployment means a loss of 151,000 jobs. Source: Alan Carruth, Mark Hooker, and Andrew Oswald,“Unemployment Equilibria and Input Prices: Theory and Evidence from the United States,” The Review of Economics and Statistics, v. 80, n. 4, 1998, p. 621.

9. United States Department of Agriculture: Economic Research Service and University of California Santa Cruz, LeBlanc, Michael and Chinn, Menzie, “Do High Oil Prices Presage Inflation,” February 19, 2004.

10. New York Times, “Gas Prices Soar, Posing a Threat to Family Budget,” February 27, 2008.

11. Calculated from EIA Short Term Energy Outlook and Household Consumption Data.

12. Ibid.

13. Calculated from 11 and 12.

 

The Cost of America’s Addiction to Oil

 

1. U.S. Census Bureau Federal Trade Division, Monthly Trade Highlights, Exhibit 17. http://www.census.gov/foreign-trade/Press-Release/current_press_release/press.html

2. U.S. Census Bureau Federal Trade Division, Historical Data—December 2007, Exhibit 17.

http://www.census.gov/foreign-trade/Press-Release/2006pr/07/

3. U.S. Census Bureau Federal Trade Division, Annual Trade Statistics 2007 Highlights, http://www.census.gov/foreign-trade/statistics/highlights/annual.html

4. Calculated from 1 and 2.

5. Calculated from 1 and 3.

6. U.S. Census Bureau Federal Trade Division, Monthly Trade Highlights, FT900 Supplement Exhibits, Exhibit 3. http://www.census.gov/foreign-trade/Press-Release/current_press_release/press.html

7. U.S. Census Bureau Federal Trade Division, Monthly Trade Highlights, FT900 Supplement Exhibits, Exhibit 3. http://www.census.gov/foreign-trade/Press-Release/2006pr/12/

8. U.S. Census Bureau Federal Trade Division, Monthly Trade Highlights, FT900 Supplement Exhibits, Exhibit 3. http://www.census.gov/foreign-trade/Press-Release/2001pr/12/

9. Calculated from 6 and 7

10. Calculated from 6 and 8.

11. U.S. Census Bureau Federal Trade Division, Monthly Trade Highlights, December 2007,

http://www.census.gov/foreign-trade/statistics/highlights/monthly.html

12. Ibid.

13. Ibid.

 

 

 

Oil Profits

 

1. Calculated from 2001, 2002, 2003, 2004, 2005, 2006, and 2007 financial reports for ExxonMobil, BP, Royal Dutch Shell, ConocoPhillips, and ChevronTexaco.

2. Calculated from 2007 financial reports for ExxonMobil, BP, Royal Dutch Shell, ConocoPhillips, and ChevronTexaco.

3. Calculated from 2006 financial reports for ExxonMobil, BP, Royal Dutch Shell, ConocoPhillips, and ChevronTexaco.

4. Calculated from 2001 financial reports for ExxonMobil, BP, Royal Dutch Shell, ConocoPhillips, and ChevronTexaco.

5. Calculated from 2 and 4.

6. Exxon Mobil, 2006 Annual Report, http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-reportsAnnual

7. 110th Congress, 1st Session, Roll call vote # 223, 416, and 425.

8. Senate Finance Committee, Summary of the Finance Committee Reported Energy Advancement and Investment Act of 2007, June 19, 2007.

9.Ibid.

 

Renewable Energy and Energy Efficiency Job Creation

 

1. American Wind Energy Association,“Support the Senate Finance Committee Economic Stimulus Package.”

2. American Solar Energy Society,“Green Collar Jobs: The New Cash Crop,” http://www.ases.org/press/2007_jobs_report.htm

3. American Wind Energy Association,“Support the Senate Finance Committee Economic Stimulus Package.”

4. Solar Energy Industries Association, “The Solar Investment Tax Credit (ITC): a mechanism for creating economic growth in the United States.”

5. Ibid.

6. American Wind Energy Association,“Support the Senate Finance Committee Economic Stimulus Package.”

7. Environment News Service,‘Geothermal Energy Set to Double Across Western States,” http://www.ens-newswire.com/ens/jan2008/2008-01-14-094.asp

 

Gasoline Prices

1. EIA, U.S. Regular All Formulations Retail Gasoline Prices, http://tonto.eia.doe.gov/dnav/pet/hist/mg_rt_usW.htm

2. Ibid.

3. Ibid.

4. Calculated from 1 and 3.

5. Calculated from 1 and 2.

6. EIA, U.S. Regular All Formulations Retail Gasoline Prices, http://tonto.eia.doe.gov/dnav/pet/hist/mg_rt_usW.htm

7. EIA, Short Term Energy Outlook, Real Petroleum Prices, http://www.eia.doe.gov/emeu/steo/pub/fsheets/real_prices.html

8. EIA, U.S. Regular All Formulations Retail Gasoline Prices, http://tonto.eia.doe.gov/dnav/pet/hist/mg_rt_usW.htm

9. Ibid.

10. Ibid.

11. Ibid.

12. Ibid.

DPC