Tuesday
Apr012008
Congress grills oil executives over profits, subsidies, and global warming
Tuesday, April 1, 2008 at 3:50PM
Members of the House Select Energy Independence and Global Warming Committee held a hearing called “Drilling for Answers: Oil Company Profits, Runaway Prices and the Pursuit of Alternatives” with five representatives from top oil companies including Chevron, Exxon, Shell, BP America, and ConocoPhillips.
Chairman Markey opened the hearing with an acknowledgment that the national gas price reached a record high of $3.29 yesterday, and said that Americans are hoping to be told on April Fools’ Day that skyrocketing prices are a massive hoax. He said that the poorest 20 percent of Americans are now spending approximately 10 percent of their income on gas, while oil company profits have nearly quadrupled. Markey said he hoped the oil companies would explain this disparity and divulge plans to invest these massive profits in research for renewable energy, and claimed that Americans “shouldn’t have to break the bank to fill the tank.”
Congressional representatives expressed personal and constituent dissatisfaction with the current oil situation. Rep. John Shadegg (R-AZ) said that US oil dependency forces America to rely on nations who are not its allies. Rep. Candice Miller (R-MI) said that the oil companies should expect to see a major backlash from Congress, shareholders, and the American people as a result of big oil executives profiting instead of investing in clean energy alternatives. Rep. Emanuel Cleaver (D-MO) said that his constituents are losing jobs because they can no longer afford to drive to them. Rep. Blackburn (R-TN) emphasized that America does have the capacity to be energy independent, but questioned if it has the will to take steps towards implementation.
The oil company executives expressed a need for fewer restrictions against domestic drilling, and highlighted other factors independent of oil companies that contribute to rise in oil prices. John Hofmeister, President of Shell Oil, claimed that price increases are not controlled by oil companies but rather result from relentlessly rising demand, obstructions to accessing domestic oil, shortened capacity, and other external factors.
Peter Robertson, Vice Chairman for Chevron Corporation, called on Congress to “help to open up the 85 percent of the Outer Continental Shelf that is off limits” and claimed that America cannot “expect other countries to expand their resource developments to meet our needs as we limit our development without good reason.”
John Lowe, Executive Vice President of ConocoPhillips, said that America needs to continue to develop all kinds of energy and cannot expect alternate energy to replace fossil fuel in a few short decades. He speculated that based on the current situation, fossil fuels must still supply two-thirds of American energy in 2030. Lowe also expressed a need for utilization of domestic fossil fuel reserves, and suggested that there is huge potential for drilling in Canada. As for development of alternate energy, Lowe said that ConocoPhillips is the largest blender of ethanol fuel and has formed a relationship with Tyson foods to create fuel out of animal fat products.
Robert Malone, Chairman and President of BP America, said that the United States will consume more oil in 2030 than it does today. He emphasized that taxing one form of energy to increase research for another will be harmful to production and the economy.
Chairman Markey opened the hearing with an acknowledgment that the national gas price reached a record high of $3.29 yesterday, and said that Americans are hoping to be told on April Fools’ Day that skyrocketing prices are a massive hoax. He said that the poorest 20 percent of Americans are now spending approximately 10 percent of their income on gas, while oil company profits have nearly quadrupled. Markey said he hoped the oil companies would explain this disparity and divulge plans to invest these massive profits in research for renewable energy, and claimed that Americans “shouldn’t have to break the bank to fill the tank.”
Congressional representatives expressed personal and constituent dissatisfaction with the current oil situation. Rep. John Shadegg (R-AZ) said that US oil dependency forces America to rely on nations who are not its allies. Rep. Candice Miller (R-MI) said that the oil companies should expect to see a major backlash from Congress, shareholders, and the American people as a result of big oil executives profiting instead of investing in clean energy alternatives. Rep. Emanuel Cleaver (D-MO) said that his constituents are losing jobs because they can no longer afford to drive to them. Rep. Blackburn (R-TN) emphasized that America does have the capacity to be energy independent, but questioned if it has the will to take steps towards implementation.
The oil company executives expressed a need for fewer restrictions against domestic drilling, and highlighted other factors independent of oil companies that contribute to rise in oil prices. John Hofmeister, President of Shell Oil, claimed that price increases are not controlled by oil companies but rather result from relentlessly rising demand, obstructions to accessing domestic oil, shortened capacity, and other external factors.
Peter Robertson, Vice Chairman for Chevron Corporation, called on Congress to “help to open up the 85 percent of the Outer Continental Shelf that is off limits” and claimed that America cannot “expect other countries to expand their resource developments to meet our needs as we limit our development without good reason.”
John Lowe, Executive Vice President of ConocoPhillips, said that America needs to continue to develop all kinds of energy and cannot expect alternate energy to replace fossil fuel in a few short decades. He speculated that based on the current situation, fossil fuels must still supply two-thirds of American energy in 2030. Lowe also expressed a need for utilization of domestic fossil fuel reserves, and suggested that there is huge potential for drilling in Canada. As for development of alternate energy, Lowe said that ConocoPhillips is the largest blender of ethanol fuel and has formed a relationship with Tyson foods to create fuel out of animal fat products.
Robert Malone, Chairman and President of BP America, said that the United States will consume more oil in 2030 than it does today. He emphasized that taxing one form of energy to increase research for another will be harmful to production and the economy.
Reader Comments (5)
Our elected oficals that block the drilling and exploration and don't allow nuclear power plants are to blame. Not to mention the % of our fuel cost that is tax. The next election and every election to come vote for the "other guy/gal". Don't let these folks get comfortable doing nothing but working towards their re-election. Keep fresh blood coming in until they get the point that we're tired of this Status Quo.
Apparently some people have not yet noticed that the temperature stopped significant increase in 1998. If it wasn't for that 22 year period from 1976 to 1998 when the atmospheric carbon dioxide level and average global temperature happened to increase at the same time, the term 'greenhouse gas' would be virtually unknown and Kyoto and the rest of the Global Warming Mistake would never have happened. As the atmospheric carbon dioxide continues to increase and average earth temperature doesn’t, many people are going to look more and more foolish, the faulty predictions of the incomplete GCMs will continue to be exposed, and the main-stream media’s global warming hype will cease. Anyone that would like to see graphs constructed using government data of actual climate history should look at http://www.middlebury.net:80/op-ed/pangburn.html .
If we look to history to see what side of the story is most accurate then we should hypothesize that big business or those with the real wealth and control are not going to give the public the whole truth. They are going to size everyone up and put them into the proper target group, whatever that may be educated, upper middle class, bit of elitist or blue collar, hard working, ect. and then they are going to relay their message so that you buy it. Isn't it odd that their profit quadrupled. I do not believe that this is just the luck of the draw. It takes very savvy business personnel to create business plans that go over that well. I t has nothing to do with the fact that the fuel is not domestic. It has never been primarily domestic. We have the oil fields in the middle east secured. And of course they don't want another tax on fuel that would fund research of alternative energy sources. That would put more pressure on them to drop their thieving prices and it would, well... put them out of business. Those that are in control of the international economic system are not going to want to give that up, so why would anyone believe anything they say? And as far as environmental crisis I care much more about humanitarian issues, but once again if you want the facts look to the scientists not the media. There have been about 960 scientific journals written about global warming and NOT ONE said that this phenomenon was not happening or that we were not contributing greatly, not one out of the 960. Do do yourself and humanity a favor and watch our Vice President's documentary "An Inconvenient Truth."
Beautifully written and informative article thank you!
One thing that democrats can't be blamed for, is not to be good politicians. Many people believe anything that comes out of their mouths as the truth. Let's see, it was a democratic congress that pass all the laws restricting oil drillin in the U.S. including slick Willie extension until 2012. They stand on national television and blame the Bush administration for making us depend on foreign oil and the price crisis of today. They blame the Bush administration for making the oil companies filthy rich. Well let's see, if someone is to blame for making the oil companies richer that what they were it was their legislation on oil drilling, less competition more money for the major oil companies. No drilling for oil in the U.S., where are we going to get the energy we need? They are the ones to blame for our dependence on foreign oil yet want to place the blame on someone else. No drilling, no more nuclear plants, again, where people believe we are going to get the energy we need?