Nation & World

<< Previous   of   Next >> J.S. Simon  (click to enlarge) John Hofmeister  (click to enlarge)   ADVERTISEMENT   Related Stories • TV with strings attached 4/2/08   CONTACT THE HERALD Do you have a news tip? newstips@heraldnet.com | 425.339.3400   Published: Wednesday, April 2, 2008 Don't blame us for high prices, oil chiefs plead Associated Press WASHINGTON -- High prices aren't our fault, oil industry executives 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 Fools' 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 executives attending the Select Committee on Energy Independence and Global Warming hearing. "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 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 nationwide 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 executives from BP America Inc., Chevron Corp. and ConocoPhillips. What would bring lower prices? asked Rep. James Sensenbrenner, R-Wis. "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. "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. "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. "These companies are defending billions of federal subsidies ... while reaping over a hundred billion dollars in profits in just the last year alone," Markey said.

1. Teen dies after Granite Falls crash 2. Bikini coffee stands to be regulated as adult entertainment 3. Sultan brothers plead guilty in death of rival gang member 4. Body found after house catches fire north of Bothell 5. Gregoire unveils budget with deep cuts, will press for tax hikes 6. Grief and gratitude expressed for four slain officers 7. Two teenagers hurt in crash near Granite Falls 8. Friends and family honor Clearview couple who loved always 9. Roe appointed interim county prosecutor 10. Arlington's budget is ‘bare bones' 2 - Top 10 Stories Most Talked about 3 - Top 10 Stories Most Emailed

• Zambian woman thanks students for their help • Food banks see rise in use • ‘Making Spirits Bright’ in Edmonds • Wolfpack takes aim at state • Seahawks help students smile • 95 and still volunteering • Sno-King joined by local TV king • Veterans back for Wildcats • Lynnwood seeks to plug $2 million budget gap • Boeing will build, flight test and deliver 787s in South Carolina to spe ... • Snohomish County EDC promoting job growth in key industry clusters • $4 million grant to advance brain tumor research has Everett links • Providence medical center construction tops off its 12-story steel frame ... • Tulalip affordable housing project to be financed by KeyBank, Raymond Ja ... • Arlington's Lak of Ink has a growing following for Luke Kooyman's creati ... • Bank of the Northwest formed • Cascade Bank earns $1.6 million