Law And Policy
On the front of its Business Day section, the New York Times (5/22, C1, Herszenhorn) reports that, as executives from the U.S.'s five largest oil companies met with the Senate Judiciary Committee on Wednesday, Democrats "vented their fury over high gasoline prices..., grilling the oilmen over their multimillion-dollar pay packages and warning them that Congress was intent on taking action that could include a new tax on so-called windfall profits." And "momentum is building for several measures, including a bill that would allow the Organization of the Petroleum Exporting Countries to be sued in American courts under antitrust laws," but "there is little sign that any of the proposals would do much, if anything, to lower prices quickly."
The Wall Street Journal (5/22, A3, Talley) notes that the executives, representing Exxon Mobil, ConocoPhillips, Royal Dutch Shell, Chevron Corp. and BP PLC, "called for Congress to open more exploration in the U.S. -- a plea the Democratic majority has rejected." Some of the executives argued that "the cost of producing a barrel of oil should be about $55 to $65 a barrel, if it were not for a weak dollar, geopolitical concerns about supply disruptions, and speculation in the market."
In his column "Washington Sketch" in the Washington Post (5/22, A3), Dana Milbank focused on the oil executives' multi-million dollar salaries, noting, "the executives' pay, while outlandish, has little to do with the price of gas. But Congress can't persuade President Bush to get serious about conservation and alternative energy," which "left the senators little to do other than scolding the five oilmen before them."
Highlighting the oil executives' arguments, the Houston Chronicle (5/22, Ivanovich) explains that opening more areas to drilling would "send a signal to the world about the United States' resolve to deal with its own energy problems," according to the executives. "Chevron Vice Chairman Peter Robertson argued that the United States can't expect other countries to increase their production 'when we limit our development without good reason.'"
The Washington Times (5/22, Warren), The Hill (5/22, Marre), the AP (5/22, Hebert), Reuters (5/22, Baltimore), and CNNMoney.com (5/22, Hargreaves) also cover the story, as did USA Today's (5/21, Lilleston) On Deadline blog.
