Michigan Congressional Democrats Take Oil Executives to Task for High Gas Prices, Windfall Profits In Congressional hearing, Democratic lawmakers reprimanded oil company executives for charging consumers sky-high gas prices even as oil companies post “some of their biggest profits ever.”

Michigan Congressional Democrats Take Oil Executives to Task for High Gas Prices, Windfall Profits

By Main Street Sentinel Staff

At a hearing of the House Committee on Energy and Commerce, Democrats demanded oil company executives answer for surging gas prices despite the falling price of oil.

The price of oil largely determines the price of gas. But even as oil prices are declining, gas prices remain prohibitively high, feeding “inflation, driving up prices for food, heating, and other staples,” and hurting working families. Meanwhile, said Michigan Congresswoman Debbie Dingell, “the oil and gas industry is expected to collect a windfall of up to $126 billion in 2022 alone.”

Representative Dingell questioned why oil companies “generally have a $30-$50 dollar break-even point per barrel,” but charge more than twice that for oil in the market.

During the hearing, House Democrats dismissed claims that BP America, Chevron, Devon Energy, ExxonMobil, Pioneer Natural Resources, and Shell USA are “just helpless participants in the global market.” Representative Frank Pallone said that oil companies “choose to keep production low so that their own profits stay high.”

Dingell added that despite raking in record profits, oil companies also continue to benefit from tax breaks meant for struggling industries. “It is not clear to me why you all are getting tax subsidies and taxpayers are paying for it at the pump,” she said.