Tuesday, April 1, 2008

Congress Has Big Questions for Big Oil


Big Oil is once again being called on the carpet. [Ummmm, yeah. Or is it just another big show for the public where nothing really happens to the oil companies, oil prices go higher, the oil companies set new levels of record profit, and they get to keep all of their federal susbsidies?]

Senior executives of the five largest U.S. oil companies were to appear before a congressional committee Tuesday where they were likely to find frustrated lawmakers in no mood for small talk.
"These companies are defending billions of federal subsidies ... while reaping over a hundred billion dollars in profits in just the last year alone," complained Rep. Edward Markey, D-Mass., in previewing the hearing.

The lawmakers were scheduled to hear from top executives of Exxon Mobil Corp., Shell Oil Co., BP America Inc., Chevron Corp. and ConocoPhillips, which together earned about $123 billion last year because of soaring oil and gasoline prices.

Markey, chairman of the Select Committee on Energy Independence and Global Warming, said he wants to know why, with such profits, the oil industry is steadfastly fighting to keep $18 billion in tax breaks, stretched over 10 years.

He said the executives would be asked to explain how they can get energy prices down in the short run and "in the long run what are they going to do to shift the focus to a renewable energy agenda."

"We have to move beyond this oil economy," Markey said Tuesday on CBS' "The Early Show." "We have to move to a renewable energy economy. ... We can never get out of this trap as long as the oil companies want to hold us hostage to this old agenda."

The House last year and again on Feb. 27 approved legislation that would have ended the tax breaks for the oil giants, while using the revenue to support wind, solar and other renewable fuels and incentives for energy conservation. The measure has not passed the Senate.

The oil industry has argued on Capitol Hill and at the White House that the tax breaks are needed to assure continued investment in exploration, production and refinery expansions. President Bush has promised to veto any such bill, saying that the oil companies should not be singled out.
The threat of nationwide $4-a-gallon gasoline, perhaps this summer, and $100-a-barrel oil is producing strong political reverberations, even as lawmakers acknowledged there is little that Congress can do to bring prices down.

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