Stupak blasts oil companies

BART STUPAK

1ST CONGRESSIONAL DISTRICT OF MICHIGAN

************************* Stupak blasts record oil company profits, calls for passage of legislation to protect consumers WASHINGTON - U.S. Congressman Bart Stupak (D-Mich.), a member of the House committee on energy and commerce and chairman of its subcommittee on oversight and investigations, yesterday blasted the two largest U.S. oil companies for reporting record profits while American families continue to feel the pinch of skyrocketing energy costs.

"While consumers pay record prices at the pump, oil companies continue to rake in record profits," Stupak said. "All the while, the Bush administration continues to turn a blind eye at the expense of American consumers."

ExxonMobil and Chevron, the two largest U.S. oil companies, reported gains in their fourth-quarter earnings and both companies set all-time records for annual profit.

ExxonMobil brought in $40.6 billion in profit last year, breaking its own record of the highest-ever corporate profit.

Chevron posted profits of $18.6 billion, a record for the company.

In the last three months of 2007, the three largest U.S. oil companies brought in more than $10 million an hour.

Stupak, whose subcommittee on oversight and investigations held hearings on energy prices last year, noted that more transparency is needed.

He specifically pointed to federal price gouging legislation he introduced and a separate bill to regulate all energy trading.

H.R. 1252, The Federal Price Gouging Prevention Act, passed the House in May 2007 and awaits action in the Senate.

"When there's little transparency in how a product like gasoline is priced, there is room for gouging," Stupak said. "Even when the Federal Trade Commission found consumers were cheated at the pump after Hurricane Katrina, the agency was powerless to act because there are no federal laws against gas price gouging."

"I urge the Senate to quickly pass the Federal Price Gouging Prevention Act to give federal regulators the authority to crack down on this abuse," Stupak said.

Stupak continues to urge congressional leaders to take up legislation he has introduced that would lower prices across the energy sector.

H.R. 594, The Prevent Unfair Manipulation of Prices (PUMP) Act, would bring enhanced oversight and transparency to the vast energy futures market, subjecting all energy markets to the same federal regulations.

In testimony before Stupak's subcommittee in December 2007, one economist noted the PUMP Act could lower the cost of oil by $20 to $30 a barrel.

"As much as half of energy trading occurs without transparency and without oversight," Stupak said. "Speculation and market manipulation in the energy futures market can create a snowball effect and consumers ultimately pay the price when they are heating their home or putting gas in their car."

*************************