Oil executives defend size, profits before Senate

Associated Press
Published: Wednesday, May 21, 2008 9:36 a.m. MDT
RELATED CONTENT |  E-MAIL | PRINT | FONT + - 
WASHINGTON — Senators told oil executives Wednesday that high oil prices cannot be explained by supply and demand and the oil industry's concentration — and OPEC price collusion — is contributing to the costs facing consumers.

Executives of the five largest oil companies were appearing before the Senate Judiciary Committee.

Committee Chairman Patrick Leahy, D-Vt., said there's an unexplained "disconnect" between prices — at nearly $130 a barrel — and legitimate supply and demand.

"We need to get prices under control.... We can only conclude that the oil markets have failed," said Sen. Herbert Kohl, D-Wis.

But Shell Oil Co. Chairman John Hofmeister said the prices can be explained, saying, "The fundamental laws of supply and demand are at work."

Read all 13 comments

Recent comments

Time to ride the bike.

biker | May 21, 2008 at 9:58 p.m.

1. Plenty of oil, lack of refineries.
2. Raise interest rate...

oil woes | May 21, 2008 at 3:39 p.m.

The DO NOTHING manner of the Republicans and their
inability...

Sokol | May 21, 2008 at 3:17 p.m.