House Democratic leaders are considering resurrecting as early as this week a failed $21 billion energy tax package to fund renewable energy by rolling back tax incentives for traditional oil and natural gas.

The package could mirror the $21.8 billion tax package that was approved by the House in December but subsequently blocked by Senate Republicans, who objected to funding renewable energy tax credits by repealing existing oil and gas tax breaks (see Daily GPI, Dec. 14, 2007; Dec. 13, 2007; Dec. 10, 2007).

“We hear reports that [Rep.] Rahm Emanuel (D-IL) is encouraging House Speaker Nancy Pelosi (D-CA) to embark upon a ‘debate’ in the House as early as [this] week to bring back the failed energy tax package — the $21 billion version — and pay for it with even more tax changes for the oil and natural gas industries,” said energy analyst Christine Tezak of Stanford Group Co. This action would be bad news, she warned, for the oil and gas industries and the renewable energy sector.

Oil and gas companies are lobbying against the return of the tax package. The news of the possible tax legislation came last week as ExxonMobil Corp. posted the highest quarterly results in U.S. history. On the strength of its international assets and higher oil prices, Irving, TX-based ExxonMobil reported that its 4Q2007 net income jumped 14% to $11.66 billion ($2.13/share), compared with $10.25 billion ($1.76) a year earlier. ExxonMobil’s annual profit of $40.6 billion also was a record, beating the $39.6 billion it earned in 2006 (see Daily GPI, Feb. 4).

©Copyright 2008Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.