MADISON, Wis. -- Wisconsin Governor Jim Doyle yesterday convened an administrative hearing in Milwaukee regarding the profits made by the world's five largest oil and gas companies in the wake of Hurricanes Katrina and Rita. Executives from BP, Chevron, ConocoPhillips, ExxonMobil and Shell Oil appeared to testify and answer the questions of state officials and Wisconsin citizens on how they could justify reaping record profits following two of the worst natural disasters the United States has seen, the governor said in a press statement.
In the last [image-nocss] two weeks, the Governor's Office received hundreds of questions and comments from citizens across Wisconsin for the oil company executives, he said.
The American people deserve some answers from the oil companies, Doyle said. What we want is for these executives to look consumers in the eye and explain how they can justify reaping these record profits in the wake of a natural disaster. To me, it's simply unconscionable, and I hope that Congress and the president will take some real action to force these companies to issue a refund of these outrageous profits.
The hearing also covered the rising cost of home heating, particularly in states like Wisconsin. In addition to being the largest oil companies in the United States, the companies subpoenaed represent four of the five largest natural gas producers in the nation. Natural gas prices in Wisconsin are expected to rise 50% or 60% this year, costing consumers an estimated $600 or more per household, Doyle said.
Doyle announced that the state will compile a report based on the findings from the hearings, including answers from oil company executives, documents subpoenaed by the state, testimony from other witnesses and the comments from the public submitted on the governor's website. The report will be delivered to Congress, the Bush administration the Federal Trade Commission (FTC), and Wisconsin's Congressional Delegation.
The hearing was chaired by Department of Agriculture, Trade & Consumer Protection (DATCP) Secretary Rod Nilsestuen. Kimberly Walker, the Department of Administration's Energy Division Administrator and Burnie Bridge, former Public Service Commission Chairperson and former Deputy Attorney General, also served as hearing examiners.
The first panel testifying was made up of oil company executives. It included:
Nancy Carter, senior vice president of U.S. fuels and logistics for BP. Mark Shores, director of U.S. retail operations for ExxonMobil. Jennie Baker, manager of wholesale motor fuels marketing business unit for the midcontinent; Thomas Mathiasmeier, manager of U.S. natural gas marketing for ConocoPhillips. Kevin Autin, regional manager of the U.S. midcontinent region for Shell Oil. Brent Faulk, vice president of natural gas trading for Chevron.The second panel testifying was made up of Wisconsin citizens. It included Kenosha Mayor John Antaramian; Robert Buchholtz, assistant superintendent of the Waukesha School District; and Rachel Dotson, a consumer, Milwaukee resident and Energy Assistance (home heating oil) program participant.
The third panel was expert testimony from Dr. Mark Cooper, director of research for the Consumer Federation of American. Taking the oil companies out to the woodshed is part of the process, but in the end, I think were going to have to have public policy that makes them respond in a more social responsible way, he said during his testimony.
Click here to read the full text of "Oil Company Profits in the 21st Century.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.