Executives from the largest oil companies in the U.S. went before Congress today to discuss rising gas prices at the pump. WASHINGTON
(Reuters) - Five U.S. oil company executives appeared on Capitol Hill
on Tuesday to explain why they were not to blame for record-high
gasoline pump prices even as they reported $123 billion in profits in
2007.
U.S. average pump prices have risen steadily since the beginning of
2008 and on Monday hit a new record of $3.29 a gallon, heaping yet more
pressure on a U.S. economy beleaguered by an imploding housing market
and recession fears.
Rep. Ed Markey of Massachusetts, a long-time oil industry critic and
chairman of the House Select Committee on Energy Independence and
Global Warming, called the hearing entitled "Drilling for Answers: Oil
Company Profits, Runaway Prices and the Pursuit of Alternatives."
Markey supports legislation that would strip about $18 billion in
tax breaks from the five biggest U.S. oil companies and put them toward
planet-friendly energy alternatives like wind and solar. Such
legislation has passed the House of Representatives twice, but has
stalled in the Senate.
"The American people deserve answers and it is time for Big Oil to go on the record about these record prices," Markey said.
Executives from Exxon Mobil Corp, Chevron Corp, ConocoPhillips, BP
Plc and Royal Dutch Shell, 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 Chevron, the second-biggest U.S. oil
company behind Exxon, said in testimony.
Stephen Simon, senior vice president of Exxon Mobil, said punitive
measures against U.S. oil companies would only strain supplies further.
"Imposing punitive taxes on American energy companies ... will
discourage the sustained investments needed to continue safeguarding
U.S. energy security," Simon said in testimony.
(Reporting by Chris Baltimore; editing by Jim Marshall)
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