Tuesday, April 1, 2008

Congress presses oil execs on high prices

Executives from BP, Chevron, ConocoPhillips, Exxon Mobile, and Shell were questioned today by congress to explain how their profits have grown while gasoline prices have gone up, and why they have not put forth more of their profits towards renewable energy.

The executives noted that their returns were in line with other industries, and that their figures just seemed large due to billion dollar industry in which they are involved. They also defended their profits noting that they are in a high risk industry, which requires enormous capital for investment, and as such this industry also yields high returns when oil prices are high.

Responding to the question about why they have not invested their profits into renewable energy alternatives, J.S. Simons, Senior Vice President of Exxon Mobile noted "that current alternative energy technologies "just do not have an appreciable impact" in addressing "the challenge we're trying to meet.""

The executive urged Congress not to pass any tax legislation against oil companies, as it would hurt the companies effort to meet the countries future oil demand.

1 comment:

JR Ewing said...

It will be interesting to see if this becomes a legitimate hearing where the facts are honestly presented, or a witch hunt where members of congress scold the oil execs in order to pander to ignorant voters.

Some people forget that in the US, you are innocent until proven guilty. The burden of proof in on those that accuse the oil companies of reaping unjust profits, not on the oil companies.