Five U.S. oil company executives are scheduled to “testify” at the Capitol on Tuesday about soaring crude oil prices and prices at the gas pump of over $3.20 per gallon.
Why wasn’t Citgo invited to the interrogations? What is the profit margin for the energy companies? It is 8 percent. That’s about half of the New York Times, LA Times and Houston Chronicle’s profit margins.
By Mick Gregory
Executives from the three biggest U.S.-based oil companies — Exxon Mobil, Chevron Corp and ConocoPhillips will attend, as well as U.S. representatives of BP and Royal Dutch Shell.
With accusatory questions expected from Democrats on the panel, oil executives will have to simply point to U.S. crude oil prices, which have skyrocketed from below $20 per barrel in early 2002 to a record $111.80 a barrel earlier this month. Approximately 44 gallons of gasoline are in one barrel. Heavy sour crude oil takes more processing expense to produce the equivalent in light, sweet crude.
“Gasoline and diesel prices are being set in what we consider to be a crude-driven market,” said Red Cavaney, president of the American Petroleum Institute, which lobbies on behalf of big U.S. oil companies.
A good question to ask is why not Citgo? How can an OPEC member be trading and pumping up prices on the New York Mercantile exchange while being members of a cartel that benefits from raising the price of crude?
Do the Democrats have a basic understanding of business and markets?
How about leasing exploritory drilling in Alaska and off shore? More supply lowers demand and price. It’s simple Eco 101.
Will Hillary or Obama chime in? This could be good. Will the famous Democrat from California speak up, Henry Waxman?