Senator says oil firms hiking prices, taking record profits

Sep. 08, 2005

Senator says oil firms hiking prices, taking record profits

By Scott Waltman
American News Writer

While an increased demand for oil has something to do with higher
gasoline prices, Sen. Tim Johnson, D-S.D., said large petroleum
companies are earning record profits by gouging consumers.

Johnson called for a federal investigation into high gasoline prices
during a Wednesday conference call covering a number of topics.

In the first quarter of 2005, profits for the largest oil companies
were up 25 percent compared to the same time last year, Johnson said.
He said Exxon Mobile profits are up 44 percent over a year ago.

"Frankly, that strikes me as price-gouging," Johnson said. "This is a
matter of profiteering on the part of big oil."

The Senate Energy Committee held a hearing this week to examine
factors that contribute to the high price of gas. Johnson said that in
the past year, South Dakota gas prices have increased $1.26 per gallon
from an average of $1.83 to $3.09.

One of Johnson's gripes is that oil companies have not invested their
profits in infrastructure that would allow them to increase
production, thereby lowering prices.

Hurricane Katrina has been the latest factor on higher gas prices,
pushing them above $3 in most parts of the country.

"Taking advantage of this situation is not only objectionable, I think
it's immoral," Johnson said.

Johnson also talked about the government's response to the hurricane.
Congress has already approved $10.5 billion in taxpayer aid for
Louisiana, Mississippi and other places hit by Katrina. And there's
talk that another $40 billion will soon be OK'd. Johnson said more
than $100 billion in taxpayer money may ultimately be used to deal
with the aftermath of the hurricane.

The Federal Emergency Management Agency has struggled in responding to
the hurricane, Johnson said. That's why he doesn't think it should any
longer be a part of the Department of Homeland Security.

In the 1990s when eastern South Dakota struggled with flooding, FEMA
was a well-run, independent agency, Johnson said. But under Homeland
Security during the last few years, he said, FEMA directors have been
political appointees that haven't necessarily known much about
responding to emergencies.

The government needs to "reprofessionalize FEMA and move it out of
political cronyism," Johnson said.

On another topic, Johnson said he still hasn't decided whether he'll
support John G. Roberts, President Bush's nominee to replace William
Rehnquist as chief justice of the U.S. Supreme Court.

Rehnquist died over the weekend. He was diagnosed last year with
thyroid cancer.

Roberts was originally nominated to replace Justice Sandra Day
O'Connor, who has announced her retirement. But when Rehnquist died,
Bush said he'd like Roberts to be the chief justice. A new potential
replacement for O'Connor has not yet been named.

http://www.aberdeennews.com/mld/aberdeennews/news/12589681.htm?template=contentModules/printstory.jsp

Was this post informative? Consider printing it or emailing it to someone you know.

"A passionate attachment of one nation for another produces a variety of evils. Sympathy for the favorite nation . . . betrays [one nation] into a participation in the quarrels and wars of the latter . . .
"Against the insidious wiles of foreign influence the jealousy of a free people ought to be constantly awake, since history and experience prove that foreign influence is one of the most baneful foes of republican government.
"Nothing is more essential than that permanent, inveterate
antipathies against particular nations and passionate
attachments for others should be excluded."

-- President George Washington
Farewell Address
.

Loading