November 8, 2005
Encourages Federal Action to Help Off-Set High Prices
LANSING – Governor Jennifer M. Granholm today applauded two United States Senate Committees that will hold a joint hearing tomorrow to investigate record oil and natural gas prices and the windfall profits recently reported by the world’s largest oil companies. In a letter to the chairmen and ranking members of the Senate Commerce and Energy and Natural Resources Committees, the Governor urged consideration of bipartisan legislation pending to compel the use of a portion of these profits to help consumers.
“Government should not stand idly by while consumers are victimized,” said Granholm. “The recent billion-dollar profits reported by oil companies are clear evidence that action by the federal government is needed. I am pleased to see the United States Senate is willing to examine this critical issue and am hopeful they will take quick action to help protect consumers.”
In September, Granholm and several of her fellow governors sent a letter to the President asking for decisive action to cap oil company prices and investigate price increases in the wake of Hurricanes Katrina and Rita. The letter also encouraged Congress to consider legislation that would return excessive profits to consumers. Despite this request and the strong bipartisan support for Senator Debbie Stabenow’s efforts to launch a Federal Trade Commission probe of gas price hikes, the Bush Administration took no action. Two weeks ago, the world’s largest oil companies, including Exxon Mobil, British Petroleum and ConocoPhillips, reported record profits.
According to a recent report by The Washington Post, the $9.92 billion profit earned by Exxon Mobil Corp. in the last three months alone would fund all Social Security benefit payments for three months, or an Ivy League education for about 60,000 kids, or pay for the military operations in Iraq and Afghanistan for more than two months.
“As gasoline prices recede from these record levels and oil companies pile their gains, I urge Congressional consideration of legislation to compel the use of a portion of these gains for consumers’ benefit,” Granholm wrote.
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