WASHINGTON, DC – In an effort to trim the deficit and save taxpayers billions of dollars annually, U.S. Senator Jack Reed (D-RI) is urging the special deficit committee to end big oil subsidies worth $21 billion over the next 10 years.

At a press conference in front of the U.S. Capitol today, Reed joined with leaders from Oceana, the Sierra Club, and fellow lawmakers from both parties in calling for the elimination of billions of dollars in oil subsidies for the five largest, most profitable private oil companies in the world.

“As we trim the deficit we face many tough challenges, but this is not one of them.  Ending taxpayer handouts to big oil companies should be a no brainer,” said Reed, the Chairman of the Appropriations Subcommittee on the Interior and Environment.  “A majority of Congress, and I believe a super-majority of the American people support ending these wasteful subsidies.  The Joint Select Committee on Deficit Reduction should repeal these subsidies to reduce the deficit.”

As gas prices have risen, so have profits for oil companies.  Merrill Lynch estimates that every penny increase at the pump is equal to $1 billion in lost consumer spending.

“Consumers are being forced to pay for their gas twice: once at the pump and again through taxpayer funded subsidies.  It is fiscally irresponsible and patently unfair to continue these subsidies.  It is time to end government funded giveaways to these oil companies,” concluded Reed, a cosponsor of the Close Big Oil Tax Loopholes Act, which would repeal the deduction for taxes paid to foreign governments, as well as limit the deduction oil companies may claim for other drilling costs. 

According to the Joint Economic Committee, eliminating oil and gas subsides would not raise the price of gas for consumers.

The Joint Select Committee on Deficit Reduction must make its budget recommendations to Congress by November 23, 2011.