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As Consumers Pay, Oil CEO’s Refuse to Testify to Congress About Soaring Prices

“While Americans struggle with high gas prices, these companies are doing victory laps, showering their already wealthy executives and shareholders with billions in stock buybacks and bonus compensation,” said one watchdog group. “They should be ashamed.”

As people across the United States face record-high gas prices—compounded by rising grocery bills and prices for other essentials—executives at three major oil companies are refusing to testify before Congress about what their firms could do to lessen the burden on U.S. households, leaving Democratic lawmakers and consumer advocates to condemn the companies for profiting amid lower and middle-class people’s financial pain.

Rep. Raúl M. Grijalva (D-Ariz.), who chairs the House Natural Resources Committee, had invited the CEOs of EOG Resources Inc., Devon Energy Corp. and Occidental Petroleum Corp. to testify next week, only to be rebuffedTuesday by the executives, who have personally profited off gas prices which averaged $4.24 per gallon on Monday.

“I invited these companies to come before the committee and make their case, but apparently they don’t think it’s worth defending,” Grijalva said in a statement Tuesday. “Their silence tells us all we need to know—that cries for more drilling and looser regulations are nothing more than another age-old attempt to line their own pockets.

Since oil and gas prices began rising earlier this year as traveling and commuting increased, and went up further following Russia’s invasion of Ukraine in February, the fossil fuel industry has claimed the Biden administration should release more permits for drilling on public lands and accelerate approval of permits for building energy infrastructure, with the American Petroleum Institute pushing for what Grijalva called “a domestic drilling free-for-all” earlier this month.

Lawmakers including Grijalva have argued that the companies could easily stabilize gas prices immediately, considering the billions of dollars in profits EOG Resources, Devon Energy, and Occidental Petroleum raked in last year.

Instead, watchdog group Accountable.US said Tuesday, Occidental Petroleum planned to use $3 billion for stock buybacks in 2022, while Devon Energy gave nearly $2 billion in share buybacks and dividends to shareholders last year. EOG Resources gave CEO William R. Thomas a $150,000 raise in 2021, making his total compensation $9.8 million.

“We want to work with them to reduce gas prices, but it seems as though they’re too busy taking in record profits while refusing to pass savings on to consumers,” said Rep. Mike Levin (D-Calif.), a member of the Natural Resources Committee.

Rep. Mark Pocan (D-Wis.) sarcastically expressed empathy for the “spineless” executives who refused to testify before Grijalva’s committee.

“It is hardly surprising that EOG Resources, Devon Energy, and Occidental Petroleum are dodging accountability by refusing to testify in Congress,” said Kyle Herrig, president of watchdog group Accountable.US. “While Americans struggle with high gas prices, these companies are doing victory laps, showering their already wealthy executives and shareholders with billions in stock buybacks and bonus compensation. They should be ashamed.”

Grijalva noted that while the industry has used the Russian invasion of Ukraine to call for even more freedom to drill for oil and gas, fossil fuel companies hold leases on 26 million acres of land.

“These same companies already have over 9,000 approved permits they can use whenever they want,” Grijalva told Public News Service on Tuesday. “And the very companies with thousands of acres of existing leases and hundreds of unused permits are the same ones shouting that they need more land for drilling.”

According to Accountable.US, the three companies refusing to speak to Grijalva’s committee “are among the top leaseholders of public lands oil and gas leases with 4,114 leases covering nearly 1.5 million acres.”

Companies including BP, Chevron, Exxon Mobil, and Shell have also been invited to testify at upcoming hearings on their business practices and impacts on consumers. In February, board members from the four companies refused to testify about the firms’ climate pledges.

Senate Majority Leader Chuck Schumer (D-N.Y.) noted last week that oil prices dropped in recent days, but no savings were passed onto consumers.

“The bewildering incongruity between falling oil prices and rising gas prices smacks of price gouging and is deeply damaging to working Americans,” Schumer said last week. “The Senate is going to get answers.”

Originally published on Common Dreams by JULIA CONLEY  and republished under Creative Commons (CC BY-NC-ND 3.0).


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Drill, Baby, Drill: Capitalism’s Only Plan for Climate Is Collapse

Photo by Zbynek Burival on Unsplash

If we continue not acting against the real cause of the climate crisis—the capitalist mode of production and the capitalist worldview—they will take it as a social license to carry on with collapse.

This past week’s flurry of announcements over “ambitious action” by governments during the COP26 in Glasgow has been justly received with scepticism by climate justice activists and the general public (and enthusiastic support by the media in general). During this same period important revelations of the massive gap in terms of necessary emission cuts and country’s plans emerged, as the broader rejection of greenwashing became pervasive. The narrative of false solutions and green capitalism doesn’t work. Yesterday, the revelation that over 800 oil & gas wells are being planned for drilling still this year and in 2022, in the report “Drill, Baby, Drill“, makes it clear that the proceedings of COP26 are mostly propaganda, as the only real, mandatory and contractualized plan global capitalism has for the climate crisis is collapse.

The reason why the climate crisis is not being solved is because it will lead to the biggest shift in power in the history of humanity, it will lead to the biggest transfer of wealth and loss of profit in history.

The scenario is the most dire ever. Not only the concentration of CO2 in the atmosphere is at its highest for millions of years, temperatures keep pushing closer to 1.5ºC and emissions are rising once again after the Covid hiatus. The IPCC scientists have leaked the second draft of Group II’s report, which states that “estimates of committed CO2 emissions from current fossil energy infrastructure are 658 GtCO2 […] nearly the double the remaining carbon budget,” revealing that “others [scientists] stress that climate change is caused by industrial development and more specifically the character of social and economic development produced by the nature of the capitalist society, which they therefore view as ultimately unsustainable.” In a few months, we will understand the level of political and business editing in the final report that finally comes out.

Yet, current infrastructure is not enough for global capitalism. In the “Drill, Baby, Drill” report, made public by the Glasgow Agreement at the COP26 Coalition’s People Summit, a still bigger measure of incoherence appears. There are 816 new oil & gas wells being planned and drilled until the end of the year and in 2022. These are located in 76 countries all around the world, countries whose governments are currently sitting in the halls of the COP26 in Glasgow, to “negotiate” a solution for the climate crisis.

The host UK appears close to the top of desired new wells, with 36, mostly offshore, in the basins of Central Graben, Moray Firth, the North Sea and Shetland. It is very likely that while Boris Johnson was doing his James Bond gag on stage, at least some four wells were being drilled to add to British fossil fuel reserves, making him a sort of meta-Bond villain. The top of the ranking for most wells planned goes to Australia and Russia, with 80 wells each, closely followed by Mexico with 78. Australia, Russia, Mexico, Indonesia, USA, Norway, UK, Brazil and Myanmar plan to drill over 500 oil & gas wells between now and the end of 2022. The report points out that this is very likely an underestimation. The companies most involved in drilling these wells are the gallery of the usual suspects: ENI, Petronas, Shell, Equinor, Total, Pemex, BP, Pertamina, Chevron and ExxonMobil. There are at least 67 wells planned above the Arctic Polar Circle. Total and ExxonMobil are in a contest to drill the deepest well ever in the ocean (Total is going for 3628m deep in Angola, and ExxonMobil is going for 3800m deep in Brazil). Many of these companies are spending millions every year on propaganda for carbon neutrality and other false solutions, blocking real action and expanding their operations.

The report also includes a sample of wells drilled in 2021 so far, with China on top, followed by Turkey, Russia, Norway, Indonesia, Mexico, Pakistan, Australia and Egypt, the host for the next COP.

This shouldn’t come as a surprise to anyone. It is the way this system operates: just enough propaganda of “ambition” and technofixes to keep fossils flowing as ever, while the climate collapses. The information does provide us with a question: if the on climate change debate is framed by companies and governments around the terms of net-zero, carbon credits, carbon taxes and offsettings, rather than stopping emissions, when will it ever come to the real problem of the climate crisis? Well, never. And that is the purpose.

Governments and companies are actively engaged in not cutting emissions, but also in effectively increasing them. Each and every one of these wells is a public crime against Humanity and all species on this planet, advertised in advance. It is good that we know them, though, for it is better to know fossil capitalism’s plans to collapse us beforehand and in as much detail as possible. That is why the call on the report does not go out to governments and fossil companies to suddenly act after over three decades of expanding fossil use. The call goes out to the climate justice movement and civil society: spread this information far and wide, act on it, campaign on it, block, stop and detain all of these projects. Other millions of fossil and fossil-based projects compose the menu of collapse daily confirmed by governments and companies. They are the legally binding commitment for our collapse and need to be stopped.

The overwhelming agreement on the reason why the climate crisis is not being fixed is becoming as high as the overwhelming scientific agreement on the cause of the climate crisis. The reason why the climate crisis is not being solved is because it will lead to the biggest shift in power in the history of humanity, it will lead to the biggest transfer of wealth and loss of profit in history. That means very little to the majority of the human population, as we will be the beneficiaries of this shift, of this transfer, of this redistribution. If we solve this crisis, we will have the chance to heal our battered planet. That is why their plan means collapse: they refuse to abdicate an inch of their brutal privilege and power. If we continue not acting against the real cause of the climate crisis—the capitalist mode of production and the capitalist worldview—they will take it as a social license to carry on with collapse. Even without social license, their plan will always lead to collapse. It’s not circumstantial, it is the core of this system. We need to collapse them.

Originally published on Common Dreams by JOÃO CAMARGO and republished under Creative Commons (CC BY-NC-ND 3.0)

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