Arrogant Big Oil Executives Laugh Off Consumer Pain at the Pump

Siobhan Hughes and Ian Talley, The Wall Street Journal, April 2, 2008

WASHINGTON — Rising gasoline prices and flush profits are putting the oil industry on the political defensive in Washington, but industry executives gave little ground Tuesday to hostile members of Congress or angry truckers on the road.

Top oil company executives pushed back against attacks on their industry at a congressional hearing, calling for the right to drill in off-limits areas and criticizing a proposal that would take away billions of dollars in tax breaks for oil to subsidize renewable energy technology.

The confrontation highlighted a dilemma facing members of Congress and policy makers. Calling on the oil industry to drop gasoline, diesel-fuel and heating-oil prices is popular with voters. While gasoline inventories are at a 15-year high, the AAA Daily Fuel Gauge Report said Monday the national average retail price of regular gasoline was a record $3.287 a gallon. That is 61.4 cents, or 23%, higher than a year ago.

Crude oil has risen from $30 a barrel to more than $100 a barrel in the past four years. Growing global demand, supply concerns, rising oil-field costs and increasing investor interest in commodities have spurred the rise.

But many members of Congress also support proposals to attack climate change by discouraging consumption of fossil fuels and promoting alternatives such as wind or solar power. Those clean technologies could struggle to be economically competitive without subsidies unless oil prices remain as high as they are, or go higher.

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