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Wisconsin Should Hold Oil Executives Accountable

by Open-Publishing - Thursday 24 November 2005
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Governments Energy Catastrophes USA

By Robert Miranda

Wisconsin Governor Doyle’s administration will be holding a public hearing in Milwaukee on December 1st to ask corporate oil executives questions about record profits their companies amassed in the wake of hurricanes Katrina and Rita.

Under the authority of Wisconsin’s trade and consumer protection law, the Governor has subpoenaed oil company executives to appear in Wisconsin for this public hearing. Those served with subpoenas are: David O’Reilly, Chairman and CEO of Chevron Corporation; Lee Raymond, Chairman and CEO of ExxonMobil Corporation; James Mulva, Chairman and CEO of ConocoPhillips Company; Ross Pillari, Chairman and CEO of BP America, Inc.; and John Hofmeister, President and U.S. Country Chair of Shell Oil Company.

"The big oil companies have made an unprecedented fortune from recent high gas prices," Governor Doyle said in a press release. "These same companies also happen to be the largest producers of natural gas, and they are poised to continue to make record profits as heating costs in Wisconsin rise 50 or 60 percent. Wisconsin consumers deserve a refund, and I am going to keep up the fight until Congress and the President agree to take some real action."

In addition, the press release issued by the governor’s office states, “natural gas prices in Wisconsin are expected to rise 50 or 60 percent this year, costing consumers an estimated $600 or more per household.”

Giant oil corporations have recorded record profits and these profits come as the nation is at war and after our Gulf Coast was hit by two devastating hurricanes. ExxonMobil, the world’s largest privately owned oil company, earned nearly $10 billion in the third quarter and ConocoPhillips earned $3.8 billion as well in the third quarter, an 89 percent increase over a year earlier according to a recent Associated Press report.

Chevron, ConocoPhillips, BPAmerica, ExxonMobil and Shell Oil USA together earned more than $25 billion in profits in the July-September quarter. The price of crude oil hit $70 a barrel and gasoline surged to record levels after the disruptions of hurricanes Katrina and Rita. And as corporate profits soared the American consumer was hit hardest in the pocket book while oil barons continued to claim an energy crisis was on the horizon.

It was Thomas Jefferson who once said to Edward Carrington on January 16, 1787, “the way to prevent these irregular interpositions of the people is to give them full information of their affairs.”

Governor Doyle has "seized the moment" and has taken steps to seek information for the purpose of presenting to the public the facts and the underlining truths behind what many are calling the oil industries’ fleecing of America.

Were we taken advantage of? Did corporate oil executives use these two national tragedies to cash in? Governor Doyle’s administration is estimating that Wisconsin consumers have overpaid oil companies more than $113 million.

Holding these hearings in Milwaukee will send a message throughout the nation. That message simply put, we in Wisconsin will not become indentured servants to corporate greed.

The billions of dollars raked in by the oil cartel can be recorded by the traffic jams of Houston, Texas, fleeing hurricane Rita. The interesting question one should ask oneself is, where were the trains? Indeed, say what you will about public transportation, but at a time when the size of Milwaukee has to be evacuated, would not trains assist in that evacuation, thus lessening congestion on the highways during emergencies like the ones that we saw in Houston?

The oil barons will more than likely state that they were just meeting the demands of the market. They would probably insist that increasing demand for energy is being stressed because of the war in Iraq and the war on terror in general, in addition to the hurricanes hitting refineries in the Gulf coast, further putting a strain on their ability to meet market demand.

Whatever their motives, one thing is certain, Government must begin efforts to place public dollars towards expanding both intercity rail systems and modern in-city mass transit. Such a public initiative in the wake of this fleecing of the consumer by the oil industry will provide more transportation for emergencies so that we can reduce the kinds of traffic emergency nightmares witnessed in Houston.

By holding this public hearing, another message is also being sent to the oil industry, and that is that Wisconsin will investigate and oppose efforts by corporate executives seeking to take advantage of innocent people during times of crisis.

This gathering in Milwaukee should be labeled the “great truth session”, between oil company CEOs and the American public. We will soon see if this public hearing will be just that.

Robert Miranda is a national award winning columnist, Latino community activist and Editor-in-Chief of the Milwaukee Spanish Journal. Email at: rmiranda@wi.rr.com

http://wisopinion.com/index.iml?mdl=article.mdl&article=2943

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