Big Oil defends profits before irate senators
By H. JOSEF HEBERT
Associated Press
May 22, 2008
Page 2 of 2
Sen. Arlen Specter, R-Pa., noting that Exxon's profits had nearly quadrupled from $11.5 billion in 2002, said he had heard nothing from the oilmen that would explain ''why profits have gone up so high when the consumer is suffering so much.''
The executives, appearing under oath, cited tight global supplies with scant spare production capacity and the fact that large areas of land and offshore waters remain offlimits to drilling. And they said they're worried Congress was talking of requiring the five companies to pay more taxes.
''I urge you to resist these punitive policies,'' said Hofmeister.
It was not what many senators wanted to hear.
You have ''just a litany of complaints that you're all just hapless victims of a system,'' Sen. Dianne Feinstein, D-Calif., told the executives. ''Yet you rack up record profits ... quarter after quarter after quarter.''
One senator after another cited the pain that high energy prices are causing farmers, small businesses and people trying to find a way to afford a vacation trip this summer.
''Is there anybody here that has any concerns about what you're doing to this country with the prices that you're charging and the profits that you're taking?'' Durbin asked.
The titans of America's oil industry sat quietly for a moment.
''Senator,'' replied Exxon's Simon, ''We have a lot of concern about that. And we're doing all we can to put downward pressure on prices.''
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