(The Center Square) – Lawmakers grilled a panel of leading oil company executives during a Congressional hearing Wednesday over high gas prices. The executives responded that restrictive government policies play a significant role.
The panel comes against the backdrop of soaring inflation, a ban on Russian oil imports, and gas prices that have hit all-time highs in recent months.
According to AAA, the national average for a gallon of gas is $4.16, a major increase from the same time last year, when the average was $2.87. Democrats have called on oil companies to lower gas prices.
“The American people are understandably fed up with these prices, and we are here today to demand answers from Big Oil about when they will finally start providing the American people some relief,” Energy and Commerce Chairman Frank Pallone, D-N.J., said during the hearing. “As oil prices rise and Americans are hurting, the six oil companies testifying today made more than $75 billion in profits between them last year. It’s also likely these companies will make even more money this year. In fact, on Monday Exxon announced that its first quarter profits may be more than $9 billion – that’s higher than last year’s first quarter profits of $8.8 billion. And all these profits while Americans are getting taken for a ride at the gas pump.”
The Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce held the joint hearing. That hearing included testimony from David Lawler, chairman and president of BP America, Michael Wirth, chairman and CEO of Chevron Corporation, Richard Muncrief president and CEO of Devon Energy Corporation, Darren Woods, CEO of ExxonMobil Corporation, Scott Sheffield, CEO of Pioneer Natural Resources Company and Gretchen Watkins, president of Shell USA.
The oil executives said they are working to keep prices down by expanding supply, which costs money via investment, new technology, and taking financial risks. They also pointed to the role of government policies. The Biden administration has taken fire for limiting pipeline development and drilling permits.
“No single company sets the price of oil or gasoline,” Woods of ExxonMobil said. “The market establishes the price based on available supply, and the demand for that supply. … Government plays a critical role in this. Policies that reflect the importance of energy, create certainty and improve predictability, encourage industry investment, and ensure affordable and reliable supplies of energy. Consistent, efficient, and effective permitting processes, whether for leases, drilling, or infrastructure such as pipelines, or export applications, will help spur further investment in U.S. oil and gas production.”
“The American people are understandably fed up with these prices, and we are here today to demand answers from Big Oil about when they will finally start providing the American people some relief,” Energy and Commerce Chairman Frank Pallone, D-N.J., said during the hearing. “As oil prices rise and Americans are hurting, the six oil companies testifying today made more than $75 billion in profits between them last year. It’s also likely these companies will make even more money this year. In fact, on Monday Exxon announced that its first quarter profits may be more than $9 billion – that’s higher than last year’s first quarter profits of $8.8 billion. And all these profits while Americans are getting taken for a ride at the gas pump.”
The Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce held the joint hearing. That hearing included testimony from David Lawler, chairman and president of BP America, Michael Wirth, chairman and CEO of Chevron Corporation, Richard Muncrief president and CEO of Devon Energy Corporation, Darren Woods, CEO of ExxonMobil Corporation, Scott Sheffield, CEO of Pioneer Natural Resources Company and Gretchen Watkins, president of Shell USA.
The oil executives said they are working to keep prices down by expanding supply, which costs money via investment, new technology, and taking financial risks. They also pointed to the role of government policies. The Biden administration has taken fire for limiting pipeline development and drilling permits.
“No single company sets the price of oil or gasoline,” Woods of ExxonMobil said. “The market establishes the price based on available supply, and the demand for that supply. … Government plays a critical role in this. Policies that reflect the importance of energy, create certainty and improve predictability, encourage industry investment, and ensure affordable and reliable supplies of energy. Consistent, efficient, and effective permitting processes, whether for leases, drilling, or infrastructure such as pipelines, or export applications, will help spur further investment in U.S. oil and gas production.”
