Republicans turn on the oil industry as petrol prices soar

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Republicans turn on the oil industry as petrol prices soar

· 'US owed an explanation', says Senate committee
· Bosses fight windfall tax calls after record profits

David Teather in New York
Thursday November 10, 2005
The Guardian


Some of the world's top oil executives were yesterday forced to defend themselves in Washington against charges of profiteering. At a politically charged Senate hearing, executives from Exxon Mobil, Shell, BP, Chevron and ConocoPhillips were grilled about the eye-popping size of recent earnings as consumers struggled with rising petrol prices.

The chairman of the Senate energy committee, Pete Domenici, told them there is a "growing suspicion that oil companies are taking unfair advantage" of crude prices that recently touched $70 a barrel. "The oil companies owe the country an explanation."


The oil industry has been attracting increasing criticism. Exxon Mobil earned almost $10bn (£5.7bn) during the third quarter, leading some Democrats to call for a windfall tax. The hearing was remarkable chiefly because it was convened by the Senate's Republican leadership. The party is more commonly regarded as an ally of the oil industry, particularly under the current administration. The hearing demonstrates how potent rising petrol and home heating costs have become as a political issue. Earlier this year Republicans had pushed through a further $14.5bn in tax breaks for the industry.
Lee Raymond, chairman of Exxon Mobil, admitted that rising gasoline prices "have put a strain on Americans' household budgets" but otherwise was unbowed. The industry's earnings per dollar of revenue, he said, were in line with other industries. Profits, he added, "go up and down".

http://business.guardian.co.uk/story/0,16781,1638758,00.html

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1. Just like oil for food they thought they were being cut out...

[meegbear]

2. Since the repugs felt they didn't have to be under oath ...

I don't think they turned too hard on them.