[Congressional Record (Bound Edition), Volume 152 (2006), Part 1]
[Senate]
[Pages 512-513]
[From the U.S. Government Publishing Office, www.gpo.gov]




   CONSOLIDATION IN THE ENERGY INDUSTRY: RAISING PRICES AT THE PUMP?

  Mr. LEAHY. Mr. President, earlier this morning, the Judiciary 
Committee held a hearing on the consolidation of the energy industry. 
Regretfully, due to a scheduling conflict, I was unable to attend the 
hearing which was noticed only 1 week ago. I come to the floor this 
afternoon because this is an issue that needs to be addressed, not only 
by me, or the Committee, but by this entire body. The exorbitant cost 
of fuel is one of the most critical issues facing our nation.
  Strong leadership by this Congress is needed to help all of the 
Americans whose pockets are being emptied by the skyrocketing costs of 
fuel. Consumers, small businesses, farmers, families trying to heat 
their homes in the cold winter months, senior citizens on limited 
incomes, every community in this country has felt the pinch of trying 
to keep up with energy costs. Everyone has suffered--or rather, almost 
everyone.
  The day before yesterday, the big oil companies posted their year-end 
profit reports for 2005. The five biggest--ExxonMobil, ChevronTexaco, 
ConocoPhillips, BP, and Shell--trumpet raking in record profits for the 
year. In fact, ExxonMobil, with $36.7 billion in profit last year, 
turned the highest yearly profit in U.S. history for any business.
  We did not hear from these companies today because they have declined 
to appear at this hearing. I am disappointed by their decision. 
Boycotting this hearing will not stifle our questions or the need for 
their accountability to Congress and American consumers. The chairman 
has announced a second hearing for the end of this month, and the 
executives from the oil companies will attend, whether voluntarily or 
in answer to subpoenas. We will not rest in our effort to understand, 
and then correct, the problems in the energy markets.
  On its face, the deplorable issue here is not the unprecedented 
profits garnered last year. Surely, any business the size of these 
corporations could produce a high yield selling their product at $60 a 
barrel. Rather, the striking issue here is how these profits compare 
with years past. For example, since 1999, oil refiners have seen a 334 
percent increase in yield made on each gallon of gasoline refined. 
Moreover, these same companies have more than doubled their control 
over oil production.
  Time and time again, oil companies have defended startling statistics 
such as these. They claim that increased costs for production, 
exploration, and meeting environmental standards justify increasing 
prices at the pumps. This is obscene. I say it is time to invest in the 
American people. We need to investigate excessive market concentration 
in the oil industry that is stifling competition, constricting supply, 
and ultimately harming consumers. And then we need to do something 
about it.
  I was glad to hear the President sounding like a Democrat on energy 
last night in his State of the Union speech. I can only hope that his 
words mean that he has finally abandoned the failed policy of the 
Cheney energy task force that had worked in secret with Ken Lay and 
other energy industry bigwigs. Had we adopted the Democratic energy 
proposal on which Senator Bingaman and others have worked so hard over 
the last several years, we would be much farther along. Nonetheless, we 
welcome the President and, I hope, some congressional Republicans to 
the Democratic emphasis on alternative and renewable fuels. After all 
that the Bush administration and the Republican leadership have done to 
advance the interests of the oil companies, including the attempts by 
House Republican leadership to insert special interest provisions in 
conference reports to give oil companies immunity for the environmental 
and health damage they cause, this reversal of position would be a good 
development for the American people.
  Along with conservation, renewable energy is a key to a cleaner, more 
efficient energy future. If the President would work with us and follow 
through with sensible proposals, we can forge a bipartisan partnership. 
Working together, we can do better to make this a safer more energy 
efficient and more prosperous country. I along with the rest of America 
will be watching to see if these statements are reflected in the 
President's policies and budget request, however.
  We need to relieve America's dependence on foreign oil. Although the 
Mideast is not the source of the majority of our energy, its share has 
grown during this administration. I also urge the President and the 
Republican leadership of Congress to work with us to relieve our 
dependence on foreign investors and on borrowing from Social Security 
to finance the record deficits and growing debt that their policies 
have created.

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