Democrats Demand Answers From Oil Companies

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Democrats Demand Answers From Oil Companies

From the article:

The letter asks the CEOs of BP, ConocoPhillips, Chevron, Exxon Mobil, Valero Energy Corp., Tesoro Corp., and Shell Oil to "provide the Subcommittee with detailed answers" to 13 specific questions, including the following:


1. What is your strategic plan to raise the supply of gasoline for the onset of the peak driving season, which is only weeks away?

2. What steps are you planning to take, and when do you plan to take them, to bring back online refining capacity that you have removed from production? When do you plan to have attained maximum refining capacity?

3. What steps are you planning to take, and when do you plan to take them, to find supply other than your own production to bring your inventory to the national average of up to 30 days supply?

Kucinich also asks the oil companies to project what their refinery profit margins will be during the peak driving season.

Kucinich said his subcommittee is concerned about the "oil industry's resistance" to technological measures that could adjust for the effects of temperature on gasoline, particularly in warmer states such as California. (Gasoline expands as it warms, thus providing less value per gallon.)

Among other things, Kucinich asks, "Would you object to a federal law phasing in temperature-compensated gasoline sales in the United States?"

His letter also expressed concern about market barriers for alternative fuels. It asks the CEOs, "What steps are you taking or do you intend to take to speed up the deployment of E85?" (E85 fuels, such as ethanol, are alcohol/fuel mixtures.)

The letter asks the CEOs to "provide detailed and documented answers to all of these questions by April 25."


As I predicted after the 2006 elections, oil prices and gasoline prices have risen. My impression is that Democrats in Congress are basically against exploration activities on Federal lands and against building new refineries in the U.S. Also the Clinton administration gave it's blessing to oil company consolodation in the late 90's that had the effect of reducing competition. Yet now the Democrats are bellyaching about supply, lack of refining capacity, and lack of competition in the oil industry. Doubt if a windfall profits tax or eliminating federal subsidies will decrease prices at the pump. Also aren't higher gas prices in California (I know first hand about this after being there last week for 6 days) due to legislation sponsored by the Democrats mandating emission standards that are more stringent than in other states?