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Rep. Frank Pallone Jr., a New Jersey Democrat, accused oil companies of jacking up the cost of gas just when Americans are paying record prices at the pump.
The chairman of the House Energy and Commerce Committee, in a letter to the largest oil and gas producers, said there are ample approved drilling spots to meet production needs.
Pallone asked the executives of BP, Chevron, Devon Energy Corporation, ExxonMobil, Pioneer Natural Resources, and Royal Dutch Shell to testify before the Committee on Wednesday, April 6, to address the industry’s impact on consumers.
Pallone’s hearing comes as the average price of a gallon of regular gasoline hit a record $4.331 on Friday, according to AAA. In New Jersey, the average price was $4.297 for a gallon of regular gas this week.
Pallone said the oil industry has been buying back stock and paying dividends to its investors, instead of spending profits on producing more oil,
“As American families confront high gasoline prices caused by the volatility of global energy markets and Vladimir Putin’s unprovoked invasion of Ukraine, I am deeply concerned that the oil industry has not taken all actions within its power to lower domestic gasoline prices and alleviate Americans’ pain at the pump,” Pallone wrote.
“Instead, the industry appears to be taking advantage of the crisis for its own benefit.”
Pallone said he's proud to see reports this week that nearly 80 percent of Americans support Russian sanctions even if gasoline prices rise.
"But the financial sacrifices made by American families should be in service of the Ukrainian people, not oil company profits," the congressman wrote.
The fossil fuel industry has more than 9,000 unused drilling permits in its possession, Pallone explained, with more than 26 million acres of U.S. public lands at its disposal – of which 53 percent is going unused.
By keeping domestic oil production low and funneling revenue back to investors and executives, the oil industry is keeping energy prices—and profits—artificially high, Pallone said.
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