Windfall Profits

Oil chiefs say high prices not their fault

WASHINGTON - Don't blame us, oil industry chiefs told a skeptical Congress. Top executives of the country's five biggest oil companies said Tuesday they know record fuel prices are hurting people, but they argued it's not their fault and their huge profits are in line with other industries.

Appearing before a House committee, the executives were pressed to explain why they should continue to get billions of dollars in tax breaks when they made $123 billion last year and motorists are paying record gasoline prices at the pump.

"On April Fool's Day, the biggest joke of all is being played on American families by Big Oil," Rep. Edward Markey, D-Mass., said, aiming his remarks at the five executives sitting shoulder-to-shoulder in a congressional hearing room.

"Our earnings, although high in absolute terms, need to be viewed in the context of the scale and cyclical, long-term nature of our industry as well as the huge investment requirements," said J.S. Simon, senior vice president of Exxon Mobil Corp., which made a record $40 billion last year.

"We depend on high earnings during the up cycle to sustain ... investment over the long term, including the down cycles," he continued.

The up cycle has been going on too long, suggested Rep. Emanuel Cleaver, D-Mo. "The anger level is rising significantly."

Alluding to the fact that Congress often doesn't rate very high in opinion polls, Cleaver told the executives: "Your approval rating is lower than ours, and that means you're down low." WASHINGTON - Don't blame us, oil industry chiefs told a skeptical Congress. Top executives of the country's five biggest oil... more

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