Huge Oil Profits, High Gas Prices and Little Renewable Energy Research

In a hearing Tuesday, the nation's top five oil companies defended their record profits, refused to invest more in renewable energy research and development and said they aren't responsible for high prices at the gasoline pump. Oh, and they asked for more subsidies.

Exxon, for instance, invested a good portion of its record $40.6 billion 2007 profits in neither renewable energy, new refining capacity or exploration of new oil reserves. It bought back stock to give its investors a high rate of return, according to the San Francisco Chronicle.

Exxon refused Congressional challenge to invest 10% of its earnings in renewable energy research, according to USA Today. The decision may be taken out of their hands, if the House is successful in taking $18 billion in annual oil company tax breaks away and applying them to the renewable energy industry.

Predictably, the oil company executive trotted out the Arctic National Wildlife Refuge and offshore areas, where Congress has restricted drilling for oil and gas, as proof that Congress is standing in the way of increased domestic energy production. Most analysts have said that wouldn't significantly affect supply or price, but environmental advocates say it would decimate untouched wilderness.

COMMENTS ()