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Herseth Sandlin: Oil companies' responses disappointing
April 4, 2008 | Chuck Clement, Madison Daily Leader

Rep. Stephanie Herseth Sandlin, D-S.D., told reporters on Thursday that the answers she and others received earlier this week from oil company executives were disappointing overall.

As a member of the Select Committee on Energy Independence and Global Warming, Herseth Sandlin questioned the heads of Exxon Mobile, Shell, BP America, Chevron and ConocoPhillips on Tuesday. She said that South Dakota residents have recently expressed their concerns about how rising fuel prices were adversely affecting the budgets of households and businesses.

During the committee hearing, the oil company executives refused to take responsibility for the effects of higher energy costs on the U.S. economy, according to Herseth Sandlin. She said the candor and cooperation from the executives varied from low with J. Stephen Simon of Exxon Mobile and John Hofmeister of Shell Oil to better from Peter Robertson of Chevron.

Part of her questioning dealt with the oil companies' attitudes toward ethanol and other biofuels and whether they were part of a coalition spreading disinformation about biofuel production. Biofuel critics have blamed higher food prices on the use of corn for U.S. ethanol production.

She also asked the oil company representatives if their corporations were assisting efforts in making E85 biofuel available to consumers.

Herseth Sandlin said that she did receive some acknowledgment from the executives that higher fuel costs have also had an effect on food prices.

While supporters of the U.S. oil and gas industry have called more domestic drilling and production to solve the nation's energy problems, Herseth Sandlin described those efforts as a short-term strategy. She said the United States can't wait another 10 years in creating a long-term strategy to solve the problem.

"We don't have that much time to address these issues," Herseth Sandlin said.

She outlined her support for responsible oil and gas drilling on the continental shelf off the nation's coasts and the extraction of oil from shale. However, Herseth Sandlin said the United States must also consider the effect that fossil fuel use has on climate change. The nation should shift from giving tax breaks to oil companies and instead offer incentives to companies developing wind energy, according to Herseth Sandlin.

Herseth Sandlin added that U.S. citizens have a growing concern about the economic policies originating from Washington, D.C., including a growing national debt, borrowing money from other nations, and still offering tax breaks and subsidies to large oil corporations.

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