Oil Execs: We Need High Profits!

http://www.nytimes.com/2008/05/21/business/apee-oil-congress.html?_r=1&partner=rssnyt&emc=rss&oref=slogin

Senators Challenge Oil Executives

By THE ASSOCIATED PRESS
Published: May 21, 2008


WASHINGTON (AP) — Top executives of the five largest oil companies tried to shift anger over high prices to a debate over supplies Wednesday, leading a senator to accuse them of acting like “hapless victims” while racking up record profits.

The senator, Patrick Leahy, a Vermont Democrat, told the executives that there is “a disconnect” between normal supply and demand and the skyrocketing price of oil — surpassing $130 a barrel even as the oil leaders testified — that the industry has yet to explain.

J. Stephen Simon, executive vice president of Exxon Mobil, said profits have been huge “in absolute terms” but must be viewed in the context of the vast scale of the industry. He also said high earnings are needed “in the current up cycle” to pay for investments in the long term when profits will be down.

“ ‘Current up cycle,’ that’s a nice term,” Mr. Leahy replied with sarcasm, “when people can’t afford to go to work” because gasoline is costing close to $4 a gallon.

snip//

Senator Richard Durbin, Democrat of Illinois, accused the corporate executives of ignoring the plight of people suffering because of high energy prices. “Where is your corporate conscience?” he asked them.

“The issue is simple,” Mr. Leahy said. “People we represent are hurting, the companies you represent are profiting.”

:rofl: :silly: Good one!

...so they're ripping us off before that.

It's that simple...:grr:

$4 a gallon is cheap and no business is being hurt by the high gas prices. :crazy:

I can't even necessarily blame them for doing it - it's what companies do. They maximize profits regardless of the consequences. It is the duty of the Congress and the Regulatory agencies to protect us from their natural tendencies. But of course that hasn't been much of a priority lately.

Bryant
Check it out --> http://politicalcomment.blogspot.com

the oil companies would rather make those obscene profits and take the money now. When investigations start and fines are levied, they'll have enough to bankroll a country of lawyers to keep those profits in their pockets.

and then they need to sit in jail for a very long time.

The greed of OPEC is killing us. The speculators are killing us. The crazy policies that devalue the U.S. dollar are killing us. And we are killing ourselves by the types of cars we drive and the way we live.

Matt, good boy that he is, simply nodded in time to the tune: The Oil Bidness deals in Big Numbers, so when we clear (profit, not net) $10 billion in a quarter, it's because we deal in Big Numbers. See?

Me? I would have reached across and smacked him in the head. Or had about six beefy guys with 19" necks standing by to whomp the living daylights out of J. Stephen Simon. Then I would have asked the questions again. And if I still got that "Big Numbers" bullshit, I'd bring in 12 beefy guys who own oversized pick-ups.

Lauer is just as bad.
IIRC, there have been no refineries built in the US for about 30 years.
Where is their big "investments" he was crying about?
Simon acted like he was at the mercy of forces beyond his control.
I hope he soon will be.

I wonder how much of a bonus he will be given this year?

ADDED: Recently read that the same barrel of oil we are paying $130 for cost the Saudis $2 to produce-with refineries built by US companies.
mark

An infrastructure material like oil is too crucial to be trusted to these clowns. They've repeatedly refused to work with us. Screw them.

Duke

isn't that s-o-c-i-a-l-i-s-m!!!??? Eek! ;-)

I'm a fairly conservative brand of Dem...but...I've been ruined by book-learnin' and too much Robert Heinlein. The roads must roll!

Duke

Seems like first thing the next POTUS - or POP, the Peak Oil President - will do is to start regulation. At 250 bucks a barrel or so.

...make the speculators pay for "gaming the market".

Duke

Pathetic. I'd rather throw my lot in with Chavez than with the corporatists.

Duke

When has Chavez ever showed anything but compassion for the people? You seem to have a problem with Chavez. What do you think he is doing wrong other than dissing Bush* and Republican rule? His country has not seen such prosperity in many, many decades. They are no longer a Debtor Nation as is the USA. People have money to spend for the first time in many of their lives. In fact Venezuela is suffering what is referred to as an "overheated economy" because they can't keep stuff on their shelves. Clinton was accused of creating an "overheated economy" as well because America had the "Greatest Economic Expansion in History" under his guidance. Do you feel the same disregard for Clinton? Bush* came along and America experienced the Greatest Economic turn around in History..

This is legend here on DU. Political and free speech suppression, sabre-rattling, regional bad-neighbor--I have my reasons.

However, he's managed (for PR reasons, or genuine concern) to help Americans with their home heating oil needs when our own Government and Big Oil couldn't be bothered. That's why I commented they way I did.

Duke

I don't keep up much anymore, but some nations will engage in making claims as means of politicizing and dragging others down. What does Chavez have to gain by helping the US?

And it was designed to embarrass the US--to cause us to "lose face", as it were.

Duke

:grr:

more finger wagging and feigned indignation.

most if not all congress critters take donations from the oil lobbyists.

the oil execs right now are laughing their asses off at America.

more of the retarded kabuki show.

It's big oil's last chance to get ANWR opened up and offshore drilling that has previously been banned in some states. The bastards are going to keep raising the price until they get Congress to give them everything they want and King George will sign it. It's now or never since a Democratic president won't fall in line with the corporate plan.