Responding to rising oil prices and charges of price-gouging, U.S. senators grilled the chief executive officers of five major oil companies in a widely publicized Nov. 9 hearing.

Despite the heat generated by the hearing, few political observers expect Congress to impose a windfall profits tax or force the industry to relinquish the billions in federal tax breaks and subsidies it now enjoys.

“On the surface, Congress is playing tough with the oil industry right now,” said Environment Texas Advocate Luke Metzger. “Behind the scenes, however, the industry is still as powerful as ever.”

That’s why Environment Texas is part of a nationwide coalition that’s seeking to change oil company behavior through other means—namely, pressure from consumers, investors and employees.

Exxpose Exxon
The Exxpose Exxon coalition, which includes environmental and other public interest groups from around the nation, is targeting the Dallas-based ExxonMobil company for a range of antienvironmental practices.

“We don’t expect oil companies to be perfect environmental stewards,” said Metzger. “But Exxon’s practices are beyond the pale.”

While other oil companies have opposed solutions to global warming, the coalition has charged Exxon with aggressively promoting junk science that attempts to discredit the scientific consensus that global warming is a real danger and that carbon pollution is a primary cause.

Given growing concerns over the effects that oil drilling would have on the pristine Arctic National Wildlife Refuge—and given growing doubts about the economic viability of profitably drilling there—two other oil companies have pulled out of Arctic Power, the lobbying group pushing Congress to open the Refuge to drilling. Not Exxon, which is still a major player in the pro-drilling fight.

While some companies, such as BP, are beginning to explore clean energy alternatives to oil, Exxon is investing little in solar, wind or other forms of renewable power.

Last but not least, despite the company’s responsibility for the most notorious oil spill in the nation’s history, Exxon is still resisting paying the punitive damages owed to fishermen and others who suffered damages due to the Valdez spill of 1989.

As the company posted record profits in the wake of Hurricane Katrina, some advocates called for either a windfall profits tax, an end to federal subsidies for the oil industry, or both. The coalition pointed out: “This is money best spent elsewhere,” read an Exxpose Exxon coalition statement. “The federal government could use the money to deflect the costs of hurricane recovery efforts along the Gulf Coast. It could increase funding for the Low Income Home Energy Assistance Program, which will help low-income Americans deal with record home heating costs this winter. Congress could use the money to increase the tax credit for more fuel efficient vehicles, reducing America’s oil consumption, or spur investment in renewable energy technology."

The Exxpose Exxon coalition is focusing attention on Exxon’s record and calling on Americans to press the company to change. “Every time we buy our gas elsewhere, or invest in a different firm, or take a job with another company, we send Exxon a message that it’s time for this company to change its ways,” said Metzger.

“On the surface, Congress
is playing tough with the
oil industry right now.” But
behind the scenes, however, the industry is still as powerful as ever.”

Luke Metzger
Advocate, Environment Texas

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