Big Oil is losing allies in the White House. In a climate where rising gas prices have many Americans on edge, the Republican candidates for office are dressing down one of their traditional supporters: Big Oil. While the rhetoric is likely to do nothing to dampen Big Oil earnings, and it won't change Americans' oil consumption behaviors, it is likely to help Republican candidates distance themselves from an unpopular administration known for its ties to Big Oil. But what are the candidates saying?

Most of the Republican candidates present at last week's debate in New Hampshire mentioned Big Oil's earnings, as well as the money it gets from profits. Rather than investing the earnings in their own stock, as Exxon (XOM) is famous for, some of the candidates wanted to see other steps taken. Mitt Romney and Jim Gilmore both expressed a desire to see increased investment in the oil industry: Romney believes the money should be invested in refineries, and Gilmore wants to see more oil field exploration and increased drilling. Ron Paul voiced his discontent with the fact that the U.S. government subsidizes Big Oil, even with the record earnings the oil industry has been earning.

Rudy Giuliani took a different tack, though. Rather than talking about reinvesting in oil, he encouraged Big Oil to broaden investments in alternative energy, citing security concerns as well as environmental concerns. Reports Monsters and Critics:

'It's frustrating and really dangerous for us to see money going to our enemies because we have to buy oil from certain countries,' said former New York City Mayor Rudy Giuliani. 'We should be supporting all the alternatives.'

Giuliani said a government-sponsored project, like the Apollo missions of the 1960s, to develop alternative fuels would reduce global warming and bolster national security.

The short term effects of such opinions on Big Oil are likely to be small. It is now summer driving season and demand is expected to increase, even with rising gas prices. However, as more people feel the pinch and consider alternative energy, it is reasonable to assume that in the long term, Big Oil will continue to benefit only if it diversifies its investments to include more alternative energy.

Disclosure: The ONLY Big Oil stock I am investing in is BP (BP).

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