Congress grills oil execs on record pump prices

[Chibi Kitsune]

becuase we need stuff to talk about

WASHINGTON (Reuters) - The U.S. Congress dragged in executives from five international oil companies on Tuesday to explain why they should not be blamed for record-high gasoline prices after booking profits of $123 billion in 2007.

Executives from Exxon, Chevron Corp, ConocoPhillips, BP Plc and Royal Dutch Shell appeared before the panel in a spectacle not seen since Congress investigated energy price spikes in the wake of the 2005 hurricanes that blasted the vast oil infrastructure along the

U.S. Gulf Coast.

"The American people deserve answers and it is time for Big Oil to go on the record about these record prices," said Rep. Ed Markey of Massachusetts, a long-time oil industry critic and chairman of the House Select Committee on Energy Independence and Global Warming.

U.S. average pump prices have risen steadily since the beginning of 2008 and this week hit a record $3.29 a gallon. Gasoline could eclipse $4 a gallon when the peak summer driving season starts according to some forecasts.

Rising pump prices have added pressure on a U.S. economy already beleaguered by an imploding housing market and recession fear as oil company profits have surged.

"(They are) reaping a major financial windfall," Markey said, pointing to Exxon Mobil Corp's 2007 profit of $40 billion, the biggest in U.S. corporate history.

Executives from the companies said factors beyond their control had driven prices up -- mainly crude oil prices that have leapt over five-fold since 2002 to a record $111.80 a barrel last month.

"Given that the largest contributor to the cost of gasoline is crude oil, this has translated into record-high gasoline prices," Peter Robertson, vice chairman of No. 2 U.S. oil company Chevron, said in testimony.

Markey supports legislation that would strip about $18 billion in tax breaks from the five biggest U.S. oil companies and put funds toward planet-friendly energy alternatives like wind and solar.

Such legislation has passed the House of Representatives twice, but has stalled in the Senate amid resistance from energy companies and their Congressional allies.

"Imposing punitive taxes on American energy companies ... will discourage the sustained investments needed to continue safeguarding U.S. energy security," Exxon senior vice president Stephen Simon said in testimony.

Markey asked why the company has not invested more in renewable energy sources despite ongoing calls for greater energy flexibility.

"Putting more money into something does not necessarily equal progress," Simon responded, pointing to a study that Exxon supports at Stanford University with $100 million in funding over a decade.

House Republican leader John Boehner mocked the hearing as a "politically motivated, made for TV" event.

[The Apple Fan]

What the U.S. needs is what Canada used to have. A federaly run oil and gas company. It's just to bad we sold Petro Canada though, but Trudeau did his best.

[Chibi Kitsune]

still a very interesting article

more people should know this

[rounds1]

So will lower prices come of this?

No?

Thought so...damn bastards.

[Chibi Kitsune]

Originally Posted by rounds1

So will lower prices come of this?

No?

Thought so...damn bastards.

they should, but they probably won't

also keep in mind the current car engine is highly inefficient

for every 3 gallons of gas used only 1 gallon is actually used making the car move (on average anyway)

they're a way to fix it but the oil companies bought the patent so it's not being used

that's what Chibi heard anyway

[rounds1]

Gas and oil prices kill home owners twice as bad. I just got a notice that my gas bill is going up 12% now and probably by another 10% in a few months.

It's gross...

[man on the moon]

what happened to 'free market'??

anyways, i think Americans should use smaller cars

[Chibi Kitsune]

every American needs a hummer

[man on the moon]

with as much cylinders as possible...

[Chibi Kitsune]

V30
the new minimum