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OIL COMPANY EXECUTIVES TELL WYDEN:
WE DON’T NEED GOVERNMENT INCENTIVES
FOR ENERGY EXPLORATION
Wyden plans to offer amendment to repeal
tax break in energy bill
for energy company exploration in the face of record high oil
company profits
November 09, 2005
WASHINGTON, D.C. – Five
oil company executives told U.S. Senator Ron Wyden (D-Ore.) today
that they do not need tax incentives included in this year’s
Energy bill for additional energy exploration in the face of record
gas prices and oil company profits. The executives today told
Wyden that they agreed with a statement by President Bush earlier
this year that when the price of oil exceeds $55 a barrel, the
oil companies do not need additional incentives for oil and gas
exploration. The price of crude oil is currently at $60 a barrel.
In response, Wyden said he intends to offer an amendment to tax
reconciliation legislation to repeal an incentive originally included
in the Energy bill (H.R. 6) enacted earlier this year. Wyden questioned
the chief executives of Exxon-Mobil, Chevron, ConocoPhillips,
BPAmerica and Shell Oil USA today during a joint hearing of the
Senate Committee on Energy and Natural Resources and the Senate
Commerce Committee on energy pricing and profits. Recent reports
have shown that the five companies earned more than $25 billion
in profits during the most recent quarter.
“Your companies have been charging record prices and getting
record profits, but also getting record tax breaks. Now, the President
says they aren’t needed and you just told me they aren’t
needed. But Congress just a couple of months ago gave you several
billion dollars in new tax breaks on top of the tax breaks you
already get. Why shouldn’t Congress take back the billions
of dollars in brand new tax breaks, breaks you just told me aren’t
needed, and use that money to help people who are hurting in our
country?,” asked Wyden of the executives at today’s
hearing.
None of the executives today said they would be opposed to Wyden’s
efforts. He plans to seek the repeal of a tax break for oil companies
expenses relating to oil and gas exploration.
Also at today’s hearing Lee Raymond, the chairman of Exxon-Mobil,
declined to support efforts to rein in oil commodity speculators,
whose trading affects the price of oil. Raymond said that speculation
is simply part of the energy market. Raymond has previously said
that speculation on oil prices accounts for about $20 of the current
per-barrel cost of oil.
Wyden also questioned whether the executives would halt anti-competitive
practices such as zone pricing and redlining, which have hurt
energy consumers particularly on the West Coast. As the hearing
was drawing to a close, he asked that his questions and the executives’
answers be submitted for the record in a timely fashion.
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