For Immediate Release

July 22, 2010

Contacts:
Mary Gutierrez 213.276.338, Michael Soller 213-446-1851

Hundreds March on Occidental Petroleum Office to

Demand
Big Oil Do Its Part to Rebuild California
Eliminating Oil Pumping Loophole Would Raise $1.2 Billion to Help fill State
Budget Gap and Save Jobs & Vital Services

Los Angeles – Hundreds of Californians descended on the offices of Occidental

Petroleum in Los Angeles today, calling on our state elected leaders to end a $1.2
billion annual tax giveaway to Occidental and other large oil producers. Marching from
the Federal Building in Westwood to the oil giant’s offices were Child care providers,
school employees, social workers, college students, and community members. They
descended to the oil giant’s offices to say that closing the loophole in the state budget
could protect education and social services from deeper cuts.

“Oil companies like Occidental have abused California’s broken budget system and
squeezed California’s taxpayers for giveaways for too long. It’s time for Big Oil to do its
part for California.” said Marlene Allen, an LA County social service provider and
member of SEIU Local 721. “We need to rebuild California, and that means investing in
our economic recovery, saving vital services and jobs and strengthening our schools,
colleges and healthcare. We can’t keep giving away billions each year to big oil
companies and other corporations.”

“People who say California doesn’t have a choice but to cut schools, seniors, child care
and healthcare are flat-out wrong. Our state elected leaders have a choice: whether to
help ordinary Californians or keep giving away our tax dollars to Big Oil and other
corporations,” said Monica Mitchell a student and working mother whose child care
support would be cut.

Monica was one of hundreds of working parents, students, and community members
who taped a note on Occidental’s front door explaining what could happen to them if
the legislature and the governor choose to give away our tax dollars to big oil rather
than helping ordinary Californians by funding schools, and services for the elderly and
people with disabilities.

-more-

As part of today’s efforts a new website was launched, www.letsrebuildca.org – where

Californians can learn more about rebuilding California and sign a petition to support a
budget that protects services and asks major corporations to do their part.
# # #

FACTS ABOUT OIL DRILLING IN CALIFORNIA

• There are 22 major oil producing states in the United States. California is the only
one that has a loophole allowing oil companies to extract oil tax-free.1

• Alaska taxes oil extraction at 25%, which Sarah Palin advocated for when she was
governor2; Louisiana collects severance tax and royalties that amount to 22%.
The federal government charges a royalty of 18.75% on oil drilled more than
three miles off the California shore, but in California and its waters, the extraction
tax rate is 0%.3

• The top four oil producers in the State of California, Chevron, ExxonMobil, Shell,
and Occidental made more than $45 billion in profits in 2009 – and that was a
bad year. 4 In 2008, these four companies made $106 billion in profits.

• The CEO of Occidental made $148.7 million last year in salary and stock options.5

• According to oil economists, California refineries buy oil on the world market, so
increasing California’s severance tax would have no effect on gas prices in
California.6

1 “California Needs an Oil Severance Tax,” Senator Loni Hancock, June 29, 2009,
http://dist09.casen.govoffice.com/index.asp?Type=B_PR&SEC={42B6205A-0002-4B2A-8F1D-
300E16EEBB0E}&DE={3A6DA952-7D95-4AAA-855E-BF94877A8E86}

2 Los Angeles Times, June 15, 2009, http://www.latimes.com/business/la-fi-hiltzik15-

2009jun15,0,679458.column

3 “Refuting Oil Industry Lies About the California Severance Tax,” California Progress Report, July 6,
2010, http://www.californiaprogressreport.com/site/?q=node/7925

4 Chevron annual report 2009, p. 10.; “Consolidated Statement of Income,” Shell Annual Report 2009. ;
Exxon Mobil Annual Report 2009, p.38.; Occidental Petroleum Corporation Annual Report 2009, p.1.

5 Wall Street Journal,

http://online.wsj.com/article/SB10001424052702303338304575155893241220422.html

6 Los Angeles Times, June 15, 2009,http://www.latimes.com/business/la-fi-hiltzik15-

2009jun15,0,679458.column
 • The profit on oil pumped in California is $45 per barrel;7 California producers will
not be shutting down their oil drilling operations if we close the drilling tax
loophole.

• According to a study by the University of California, closing the oil extraction

loophole would result in just 400 lost jobs.8 An all-cuts budget, on the other hand,
would result in 430,000 lost jobs.9

7 Wall Street Journal, April 28, 2010, http://online.wsj.com/article/PR-CO-20100428-904760.html

8 “The Economic Consequences of Proposed California Budget Cuts,” UC Berkeley Labor Center, Jacobs,
Lucia, and Lester, May 2010, http://laborcenter.berkeley.edu/californiabudget/budget_impact10.pdf

9 The California Jobs Budget, Speaker John A. Perez and Asm. Robert Blumenfield,
http://laborcenter.berkeley.edu/californiabudget/budget_impact10.pdf