Posted on 11/09/2005 7:16:55 AM PST by libertarianPA
WASHINGTON - The chiefs of five major oil companies defended the industry's huge profits Wednesday at a Senate hearing where lawmakers said they should explain prices and assure people they're not being gouged.
There is a "growing suspicion that oil companies are taking unfair advantage," Sen. Pete Domenici (news, bio, voting record), R-N.M., said as the hearing opened in a packed Senate committee room.
"The oil companies owe the country an explanation," he said.
Lee Raymond, chairman of Exxon Mobil Corp., said he recognizes that high gasoline prices "have put a strain on Americans' household budgets" but he defended his companies huge profits, saying petroleum earnings "go up and down" from year to year.
ExxonMobil, the worlds' largest privately owned oil company, earned nearly $10 billion in the third quarter. Raymond was joined at the witness table by the chief executives of Chevron, ConocoPhillips, BPAmerica and Shell Oil USA.
Together the companies earned more than $25 billion in profits in the July-September quarter as the price of crude oil hit $70 a barrel and gasoline surged to record levels after the disruptions of Hurricanes Katrina and Rita.
Raymond said the profits are in line with other industries when profits are compared to the industry's enormous revenues.
One more reason the Republicans aren't getting my vote next year. They've totally sold out to the same voters as the Dems.
Let this be a lesson - don't be too successful, or you'll have to answer to your government.
Well, if anyone knows about gouging the public, it's a politician....the proof is in your income tax bill....
Chuck Grassley must want to build another rain forrest in Coralville...
I won't belabor you with the "throw your vote away" explanation. You've heard it before and no doubt will again today.
But, everyone needs to recoginze that the future of gas availability wil depend on the ability of XOM and others to reinvest in new oil rigs and refineries.
Energy is a monopoly, it is prudent and right that there be regulation of the industry.
Capitalism works.
some regulation may be necessary...but minimal.....I too wonder how they can make profits when energy production is in such disarray. The gouging seems to emanate from a volatile future's market but this too will inevitably stabilize.
Government needs to get out of the way and let them build some refineries. And then if they don't build the refineries or conspire to keep enough closed to keep the price high, then throw the book at them. The posturing they are doing now is ridiculous. If government actually cared, they would cut the fuel taxes and remove restrictions.
Not to be rude to you, but what planet do you come from? "Energy" is not a monopoly, and will stay that way until the government decides to take it over.
I won't belabor you with the "throw your vote away" explanation. You've heard it before and no doubt will again today.
But, everyone needs to recoginze that the future of gas availability wil depend on the ability of XOM and others to reinvest in new oil rigs and refineries.
WRONG!
Of course trying to explain the difference between profit margins and gross income to a liberal is tantamount to trying to explain quantum physics to a poodle.
Is that because the "country" is ignorant of "capitalism" , Mr. Petey?
Ummmm, let's see . . . . who would you rather work for, a company that has and makes a profit from business operations, or a New Orleans refugee from Hurricane Katrina?
Take your time, I know it's a tough question.
Last i checked, there is more than ONE company involved in the extraction and sale of oil.
Don't know what books you're reading, but they're the wrong ones comrade.
"Had the Rep killed the proposal to have these people testify then the resulting cacophony of wails from the left that Rep are in the pockets of BIG BUSINESS would have gone on for months and months."
So what? Pandering to ignorance is better than sticking up for free market principles?
"Bringing the execs in to have them explain their profit margins are not only reasonable compared to other industries but are considerably lower then many, is not a bad idea"
Nope. Not a bad idea at all. If we lived under a facist regime.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.