Kabuki 5

It is amusing to watch Republican senators trapped between their two main constituencies: the oil industry and, uh, their constituents. Voters are pissed about high gas prices and home-heating costs, and they can't help but notice that oil companies are swimming in huge piles of cash. Of course Republicans aren't going to do anything that might offend the oil industry, but they need to look like they're doing something.

What's the answer? A hearing!

So they drag five oil executives to Congress. The results defy parody. Virtually every paragraph of this Reuters story is a masterpiece of black humor. It begins:

Under fire for high fuel prices, five major oil companies on Wednesday warned the U.S. Senate against levying a windfall profits tax and showed little interest in donating money to help poor Americans pay winter heating bills.

Well, that should set voters' minds at ease! But it immediately gets even better:

The companies, which earned a collective $30 billion in the third quarter, also surprised lawmakers at a Senate hearing by saying they didn't need the billions of dollars in tax breaks and energy incentives recently approved by Congress.

Ha! Get that? Don't tax us. Don't ask us to voluntarily contribute. And don't subsidize us. Just leave us alone.

Oh, but there is one thing ... namely the ability to build new refineries without filling out the paperwork and drill everywhere.

Chevron chief executive David O'Reilly said that instead of incentives, refiners need environmental regulations relaxed. "I would much prefer to see streamlined permitting ... than tax incentives," he said. ...

The companies also unanimously urged lawmakers to relax environmental regulations and lift restrictions on drilling in areas now off-limits, like an Alaskan wildlife reserve.

Yes, if I want unbiased advice on energy strategies, I go straight to the guys making billions of dollars off oil.

It's like the whole thing was designed to make Senators look pathetic. Lest that point be lost:

It was unclear if the hearing would lead to any new energy laws or simply allow senators to express indignation at high prices.

And if any doubt remains whether this was pure theater ...

Republican Ted Stevens of Alaska, head of the Senate Commerce Committee and a longtime ally of oil interests, kept a tight rein on the hearing. He stopped Democrats from asking executives about their annual pay, and refused to have the five men take an oath to tell the truth in their testimony.

That avoided an embarrassing photo akin to when tobacco executives raised their right hands at a 1994 congressional hearing and swore cigarettes were not addictive.

Yes, we certainly wouldn't want this hearing to embarrass oil execs. Better to embarrass the rest of us.

David Roberts is staff writer for Grist. You can follow his Twitter feed at twitter.com/drgrist.

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  1. jda Posted 3:12 pm
    11 Nov 2005

    they shouldn't swear inWould it really be fair to ask them to swear to tell the truth when everyone knows they are going to lie anyway?

  2. jdhlax Posted 7:25 am
    15 Nov 2005

    Wrong PremiseEven if this hearing would actually have been for the purpose of determining whether the companies had been price gouging, the idea of complaining about high oil prices is repugnant to environmental causes.  We should support high oil prices, as they would cause people to drive less, consuming less oil and polluting the air less.  Besides, we have never had high oil prices in the U.S.  They're about 50% lower than in the rest of the world.  The hearings should have investigated the Congress to find out why we don't have enough gas taxes and why oil prices in this country are so low that they encourage ecologically destructive developments and lifestyles.
  3. GulfAaron Posted 7:53 am
    15 Nov 2005

    Spend the 'excess profits' in the Gulf of MexicoOne element that needs to be considered as Louisiana's Gulf Coast and New Orleans are rebuilt, and has not been discussed in any of the coverage I've seen - is what needs to be done to secure the oil and gas infrastructure for future catastrophes. The Gulf of Mexico is moving into a 25 year period of increased hurricane activity. Global warming is increasing the water temperature of the Gulf and making these storms more and more powerful; Katrina, Rita and Wilma were three of the most powerful Atlantic hurricanes on record.
    Cumulatively the impacts of the two hurricanes on Louisiana's oil & gas industry are staggering - over 8 million gallons of oil spilled - some from refineries, some from tank farms, some from oil rigs. The Exxon Valdez spilled about 11 million gallons. While the spills were spread out for miles along the Louisiana coast, a more far flung area than Prince William Sound, it's still a huge ecological catastrophe. Not counted in that 8 million gallon total is a spill that occurred earlier during tropical storm Arlene when an off-shore spill oiled a brown pelican rookerylocated on the Breton National Wildlife Refuge.
    While no one can say when the next hurricane will strike a populated area of coastal Louisiana, it's a pretty safe bet that next year's hurricane season will see a storm or two churn through the oil & gas rigs and platforms that blanket the OCS. Is the price of our nation's dependence on oil and gas going to continue to be paid by the wetlands and wildlife of the Western Gulf? The oil & gas industry simply must do better in securing their production resources off shore and ensuring minimized impacts. Of course that's going to take increased investment on the part of the industry which can either come by the direction of our policy makers or their CEO's. Neither camp has shown much interest in improving off-shore security, relying instead on platitude-filled PR and the public's apprehension of increased gas prices to keep from making significant improvements.
    Check out the full post at the Gulf Restoration Network's blog



    Gulf Restoration Network United for a Healthy Gulf
  4. jdhlax Posted 8:31 am
    15 Nov 2005

    I've Got A Better IdeaLet's just remove those hideous oil and gas rigs, tank farms, and refineries from the Gulf altogether.  As an environmentalist, I'm not interested in "secure[ing] the oil and gas infrastructure [from] future catastrophes."  I'm interested in protecting areas like the Gulf of Mexico from any more massive ecological destruction, such as that caused by the oil and gas industries there, and restoring the Gulf to its pre-industrial conditions.  Removing the offending structures would go a long way toward accomplishing those goals.
  5. sukumar Posted 11:43 am
    15 Nov 2005

    jdhlax has it rightCongress should be investigated to expose why they insist on giving tax breaks to oil companies that don't want them (or building bridges for communities in Alaska that also don't want them).

    I find nothing surprising in what the oil execs said. Sure they want less environmental regulation; so does every other industry. Its in the nature of the beast. But it is for us, not them, to decide how much regulation is warranted. Nevertheless once the regulations are in place, haven't you noticed how the same companies spend millions on slick ads to portray how well they are protecting the environment and what good corporate citizens they are?

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