Oil Executives Go Before Congress to Defend Large Profits

[endless381]

I think we need to punch the environmentalist people in the jaw an say were pumping on our own land an F the animals that live in Alaska.............

An this meeting isnt gonna do shit about gas prices being lowerd cause the politicians who are running to be in office get sponsored by these oil companys.....We was talking about this today at work.......Its called "You scratch my back an I'll scratch yours" politicans get into office an oil companys make there big profits each year an we get ****ed in the ass

 

[Mr. Mach-ete]

I wish my trucks and car ran on 2% Milk, it would be cheaper.

 

[Ry_Trapp0]

here is the full, non-bush-hating, article:

As Gasoline Prices Soar, Congress Presses Oil Chiefs on Big Profits

WASHINGTON (AP) -- 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 said 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."

Several lawmakers noted the rising price of gasoline at the pump, now averaging $3.29 a gallon amid talk of $4 a gallon this summer.

"I heard what you are hearing. Americans are very worried about the rising price of energy," said John Hofmeister, president of Shell Oil Co., echoing remarks by the other four executives including representatives of BP America Inc., Chevron Corp. and ConocoPhillips.

While Democrats hammered the executives for their profits and demanded they do more to develop alternative energy sources such as wind, solar and biofuels, Republican lawmakers called for opening more areas for drilling to boost domestic production of oil and gas.

What would bring lower prices? asked Rep. James Sensenbrenner of Wisconsin, the committee's ranking Republican

"We need access to all kinds of energy supply," replied Robert Malone, chairman of BP America, adding that 85 percent of the country's coastal waters are off limits to drilling.

But Markey wanted to know why the companies aren't investing more in energy projects other than oil and gas -- or giving up some tax breaks so the money could be directed to promote renewable fuels and conservation and take pressure off oil and gas supplies.

"Why is Exxon Mobil resisting the renewable revolution," asked Markey, noting that the other four companies together have invested $3.5 billion in solar, wind and biodiesel projects.

Exxon is spending $100 million on research into climate change at Stanford University, replied Simon, but current alternative energy technologies "just do not have an appreciable impact" in addressing "the challenge we're trying to meet."

The appearance Tuesday before the Select Committee on Energy Independence and Global Warming was not the first time that oil executives had faced the harsh words of a lawmakers frustrated over their inability to do anything about soaring oil and gasoline costs.

In November 2005, executives of the same companies sought to explain high energy costs at a Senate hearing at which Hofmeister emphasized the cyclical nature of his industry. "What goes up almost always comes down," he told the senators on a day when oil cost $60 a barrel.

About six months later, the executives were grilled again on Capitol Hill when a barrel of oil cost $75. As the three-hour House hearing came to a close Tuesday, the price of oil settled at just over $100 a barrel on the New York exchange.

"We face a new reality, volatility, high prices, greater competition for resources," said Peter Robertson, vice president of Chevron Corp., adding that he understands that "Americans see the pain" of $100-a-barrel oil.

Markey challenged the executives to pledge to invest 10 percent of their profits to develop renewable energy and give up $18 billion in tax breaks over 10 years so money could be funneled to support other energy and conservation.

They responded that their companies already are spending on alternative energy projects and argued that new taxes would dampen investment and could lead to even higher prices.

"Imposing punitive taxes on American energy companies, which already pay record taxes, will discourage the sustained investment needed to continue safeguarding U.S. energy security," said Simon. He said over the past five years Exxon Mobil's U.S. tax bill exceeded its U.S. earnings by $19 billion.

Markey was not impressed.

"These companies are defending billions of federal subsidies ... while reaping over a hundred billion dollars in profits in just the last year alone," he said. The companies are reaping "a windfall of revenue" while poor people have to choose between heating and eating because of high energy prices.

Elsewhere on Tuesday, many independent truckers parked their rigs and others slowed to a crawl on highways to protest high fuel prices. The demonstrations were only scattered, but long lines of trucks were moving at about 20 mph on the New Jersey Turnpike, and three drivers were ticketed for impeding traffic on Interstate 55 outside Chicago, driving three abreast at low speeds.

Source: Yahoo.com - Congress Presses Oil Chiefs on Profits

 

[gump]

I think we need to punch the environmentalist people in the jaw an say were pumping on our own land an F the animals that live in Alaska.............

actually we could still drill there & barely even scratch the land of the caribou.

These whacko enviromentalists, not to be confused with the GOOD enviromentalists, won't let it happen.

Thou shalt not interfere with the mating habits of thy caribou, or thou shalt be condemned to smelling the armpits of Rosy Odonnell for the rest of thy lives.

The above, the whacko enviromentalists Commandment, now you know why we havent drilled there yet?epper:

 

[200MPHCOBRA]

TAXES here at the pump total 44 CENTS PER GALLON. On every gallon. How much profit did the government make? TRILLIONS? The oil company made 8 TO 10 CENTS PER GALLON. They searched for it, drilled for it, refined it and they transported it. Try running inflation numbers on the price of oil from the 70's till now. Knowledge is good folks, I know you're pissed, but wanting the government to take over oil companies is just plain stupid. Are oil companies angels? Hell no, just a business. If you can't afford it don’t buy it, or use less of it. But make sure you complain about the price of corn, milk, your house, your car, and everything else you use every day. Compare those prices to the 1970’s………. You can be glad that now that the price of oil is so high, it will cause investment into alternative energy sources since now they can make a PROFIT at it. But to guard yourself from being branded a HYPOCRITE, make sure you BITCH if that alternative energy company makes more than 8 to 10 cents profit per gallon equivalent.

 

[tistan]

I like how the government says taking away tax cuts when in all reality it is a tax hike on the oil company. We the people will end up paying that tax hike. All you pussies that want to blame Bush are pointing your fingers in the wrong direction. You should be blaming the tree hugging liberals that will not let us drill our own oil. Bush can do nothing about this.

Are we really a free country if the government can punish a company for making too much profit? Oil company holds the supply, and we keep on buying. They raise the prices, and we travel more and buy more gas. Why shouldn't the oil companies try to make as much money as possible? That is the free market at work, and if the governmet screws with oil companies profits then they will destroy the free market.

 

[westtx47]

^^^ Well put.

"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,"

To all the nay-sayers - this statement should be read until understood. I'm pissed too, but not because of gas prices, but because I never thought of creating an oil/gas exploration company myself.

On a side note:

Want a good idea for a startup job? Get a helicopter license and contract yourself out to these companies. Also, starting an injection well testing company would not be a bad idea either! Occidental Permian pays anywhere from 300-800 dollars a well...just for you to pressure the casing up with water, run a chart, and make sure the well isn't leaking!

I used to test 10 wells a day, in an average 8 hour day.

 

[dtheo]

ugh, freaking Big Oil today is the epitome of gratuitous greed. Amidst a hurting and bleeding economy, they still insist on milking the american citizens for all they are worth with their inflated profit margins.

:nonono:you absolutely make no sense dude, it is way more complex than saying the oil companies are greedy. World demand, politics, offshore drilling, alaska drilling, NGL's create our United States demand and prices.

If you wish to learn more, I'll post something up.:rollseyes

 

[mixedbreed02gt]

President Bush has threatened to veto any such bill that does.

where the heck are the Lee Harvey Oswald's of the world when you need them most.......

 

[UlstaftheUsurpe]

where the heck are the Lee Harvey Oswald's of the world when you need them most.......

Probably being raised by you.........

 

[VetteC501]

I'm guessing from your rides, gas money is not somthing you lose sleep over...

Haha, I don't lose much sleep over it thankfully. I still could go either way on this issue, if gas was $1.00 a gallon imagine the traffic, you think LA rush hour is bad now? But...on the other hand it would be nice to fill up and not spend an arm and a leg.

I do believe the profits big oil makes are a little excessive, I'm pretty sure those profit numbers are after the company pays all the R&D to find new oil and related things. Correct me someone if I'm wrong about that.

 

[terrible one]

When does Congress stand before the American poeple to explain why we have to rely on oil?

+ 2

 

[STAMPEDE3]

Yeah, unfortunately folks have a difficult time realizing that theres more to gas prices than supposed "greed". OPEC, along with other economic influences, have a lot to do with it.

Don't think that extra 18 billion in profit will help them explore? Think its really just greed? The latest estimate by the U.S. Minerals Management Service is 1 BILLION U.S. dollars to develop a deepwater field capable of production.(yes, this is offshore drilling).

To date, Shell has spent 554 million dollars just to obtain the right to drill(lease) in the gulf. I'm not 100% positive when they started counting the amount but I believe its since 1/1/08. Heaven forbid should they be in the right business at the right time, right? These leases, combined with salaries for the thousands of employees, insurance, and even helicopter fees(up to $200,000) for a single round trip to a rig and back - influence cost.

Now concerning Bush's supposed hand in the oil industry...someone may have to explain, because I don't see it. Does he have minerals on his ranch here in Texas? Yep. So do hundreds or thousands of other families in the state.(Interesting read: Ozona - Millionaire Row).

Also:


This beauty of a rig is billed out to Shell for hundreds of thousands of dollars A DAY. Read up on it at - http://www.popularmechanics.com/science/extreme_machines/4255407.html

Off Topic - Does anyone else find that thing amazing?

Yea, they used a good bit of profits for R&D and upgrades.


What most don't know or want to believe is that they tell you they pay $104 a barrel when they don't pay close to that.

Know why profits are record high.
Because a lot if not most of our refineries retrofitted 40 years ago to refine sour crude.

They base gas prices off or "Light sweet crude" and refine sour that they pay half price for.

Same as their excuse that diesel cost more to refine low sulfur. They have been doing that for years also. Why increase more than gas now?

 

[soontobesvt]

I work for a big Oil company here is LA (Baker Hughes) and can say first had that even though business has been good in the Gulf and the US as a whole that we still feel the numbers at the pump...IMO it's a win - win situation...They want to drill for it and I have a decent job..I can live with it...while reading through this thread, I have learned alot about different this about the way gas prices are broken down though...very good info from everyone who has posted

 

[westtx47]

Yea, they used a good bit of profits for R&D and upgrades.


What most don't know or want to believe is that they tell you they pay $104 a barrel when they don't pay close to that.

R&D...and exploration. My post was based more on the amount of money these companies spend on mineral exploration. Noble has SIXTY TWO offshore, mobile drilling rigs - operating 24/7 except when in transit. Granted not all are contracted out by Royal Dutch Shell but many, many are.

Know why profits are record high.
Because a lot if not most of our refineries retrofitted 40 years ago to refine sour crude.

They base gas prices off or "Light sweet crude" and refine sour that they pay half price for.

Same as their excuse that diesel cost more to refine low sulfur. They have been doing that for years also. Why increase more than gas now?

Not doubting it, but would like to read about it. Got any pages with some info?

 

[RFH]

I dont think the arguement is wether the oil companies can make a profit, its wether they need additional tax breaks WHILE taking in 100b/quarter. I think they need to play like the rest of america and pay the same taxes, no more corporate welfare.

 

[westtx47]

who ever doesnt think Bush isn't in with the Oil Companies, read the last line.

After some thought, I'm particularly curious as to why that last line is the big giveaway to Bush being "in" with the Oil Companies. Concerning his family's own minerals on their own land, the tax cut on Big Oil wouldn't affect them one bit as a contract is signed, on day one, between land owners and the oil company as to how much of a share the owner receives.

 

[assasyn]

I wouldn't mind if Big Oil made record profits due to record sales. Last year was a cut in sales from the year before. That was the year they first reported record profits. There are no checks and balances. If you do remove the tax breaks they will either;

A) Increase prices to compensate.

B) Move out of the USA and really put the screws to us and give the money to someone else.

This is an example of capitalism at it's best and at it's worst.

 

[assasyn]

I forgot, directional drilling FTMFW! Drill under Cuba.