As Senate Begins Hearings on Possible Price Gouging, Over 100 Reps. Say House Should Do the Same
As Senate Begins Hearings on Possible Price Gouging, Over 100 Reps. Say House Should Do the Same
WASHINGTON, D.C. - As the U.S. Senate today begins hearings on possible price gouging by major oil companies, over 100 U.S. Representatives led by Congresswoman Rosa L. DeLauro (Conn.-3) said the U.S. House should do the same. 113 House lawmakers including Democratic Leader Nancy Pelosi wrote to Speaker Hastert requesting he call on executives from major oil companies to testify before Congress.
Last week, Exxon Mobil, ConocoPhillips, Amerada Hess, and other major oil companies announced record profits for the third quarter of this year. Exxon Mobil posted a 75 percent earnings increase and profits of $9.9 billion, ConocoPhillips posted profits of $3.8 billion and an 89 percent increase in earnings, and Amerada Hess posted profits of $272 million and a 53 percent increase in earnings. While the Department of Energy has received more than 7,000 complaints of price gouging since Hurricane Katrina hit the Gulf Coast, the agency has not acted on them.
"Oil company executives must account for the record profits they have enjoyed while working men and women struggle with skyrocketing oil and gas prices over the last several months," said DeLauro. "Congress has an obligation to take action on behalf of consumers, which is why both chambers should be working to investigate price gouging."
The full text of the letter follows.
November 9, 2005
Speaker Dennis Hastert
H232 The Capitol
Dear Speaker Hastert:
We are writing to urge you to call oil company executives to testify before Congress and explain the relationship between their record profits and the skyrocketing oil and gas prices Americans have been paying over the last several months.
As you know, Exxon Mobil, ConocoPhillips, Amerada Hess, and other large oil companies have reported record profits for the third quarter of this year. Average gas prices topped $3.00 per gallon in the aftermath of Hurricanes Katrina and Rita and have been slow to come down. Exxon Mobil posted a 75 percent earnings increase and profits of $9.9 billion, ConocoPhillips posted profits of $3.8 billion and an 89 percent increase in earnings, and Amerada Hess posted profits of $272 million and a 53 percent increase in earnings. While the Department of Energy has received more than 7,000 complaints of price gouging since Hurricane Katrina hit the Gulf Coast, the agency has not acted on them.
This is occurring at a time when the United States Energy Information Administration predicts that home heating costs this winter will be the most expensive in history. In particular, the cost of natural gas is expected to increase by 48 percent and home heating oil by 32 percent, with a 30 percent increase for propane and a 5 percent increase for electricity. These increases arrive in the wake of double digit increases over 2004 prices. And with the National Oceanic and Atmospheric Association (NOAA) predicting a colder than usual winter, prices could increase even higher nationwide before the winter is over.
There is a clear need for congressional oversight in this area. Eighty members of the House wrote to President Bush on September 9, 2005, requesting that he meet with oil company executives to learn why prices are so high and what their companies are doing to ensure prices are fair to consumers. On October 27, 2005, Senate Majority Leader Bill Frist ordered the Senate Energy and Commerce Committees to launch an investigation into high energy prices, to determine their cause and investigate possible price gouging. But as of yet, the House of Representatives has not taken any meaningful action to look into this matter.
Congress has an obligation to take action on behalf of consumers. The Senate has called for an investigation and the House should do the same. Oil and gasoline companies should not be allowed to take advantage of a national emergency to increase profits.
Thank you for your kind attention. We look forward to your prompt response.
Sincerely,
Rosa L. DeLauro Nancy Pelosi
John Olver Maurice Hinchey
Barney Frank Barbara Lee
Sherrod Brown Dennis Moore
Edward Markey Steve Israel
Robert Wexler Shelley Berkley
Steve Rothman Earl Pomeroy
Mike Doyle Brian Baird
Jim McDermott Henry Waxman
Bernard Sanders Lloyd Doggett
Betty McCollum Ed Case
Linda Sanchez Robert Brady
John Larson Jerrold Nadler
David Obey Carolyn Maloney
Debbie Wasserman-Schultz Susan Davis
Doris Matsui Martin Sabo
Sander Levin Jan Schakowsky
Jerry Costello Martin Meehan
Bart Stupak Tom Allen
John Conyers Carolyn Kilpatrick
Rush Holt Jim McGovern
Rahm Emanuel Emanuel Cleaver
Hilda Solis Louise Slaughter
Russ Carnahan Donald Payne
John Tierney Nick Rahall
Bob Etheridge Michael Capuano
Dale Kildee Frank Pallone
Stephanie Tubbs Jones Peter DeFazio
Lynn Woolsey
http://www.house.gov/delauro/press/2005/November/gas_hearings_11_09_05.html