Rep. Lori Trahan Grills Oil Executives About Personal Profiteering After Russia's Invasion Of Ukraine
BOSTON (CBS) - Of all the inflationary burdens of this difficult time, few cut more deeply than the price of a gallon of gas, today averaging $4.17.
Where's that money going?
Check this out:
• Exxon Mobil is estimating profits from oil and gas may be up by $2.7 billion in the first quarter
• BP has reported its highest full-year profit in eight years
• And Chevron is enjoying its most profitable year since 2014.
On Wednesday, the CEOs of those and other big energy companies were grilled by lawmakers at a US House hearing. In typical Washington style it quickly degenerated into partisan finger-pointing, Democrats accusing the companies of price-gouging, Republicans shifting the blame to Biden administration energy policies.
There was no clear victory for either side. Fuel pricing is a complicated business, those big profits come after huge pandemic-era losses, and Biden policies have helped stall some new oil drilling. But one Democratic punch that did land cleanly was Lowell Congresswoman Lori Trahan's indictment of the corporate and personal profiteering of two of the industry executives who testified.
"On March 1st after the invasion [of Ukraine] began Shell purchased 100,000 barrels of Russian oil. Shell got this oil at a deep discount because no one else would touch it," Trahan said to Gretchen Watkins, president of Shell USA Inc. "I'm aware that your company has since apologized, but what do you think it says about Shell's values and credibility?"
"Within a day or two we announced we were walking away from $3 billion worth of investments," replied Watkins. "And I think that says a lot about how we despise what is happening."
No denial there. And then Trahan turned to Scott Sheffield of Pioneer Resources. "You sold 22,247 shares worth $5.3 million on March 2, a little over a week after Russia invaded Ukraine. Was the value of Pioneer stock after Russia's invasion higher, lower or the same as it was prior?"
Said Sheffield: "The stock was only up 8 to 9% after the invasion and I still hold 90% of my net worth in Pioneer stock. It's the first time I've sold stock in several years."
In a WBZ interview later on, Trahan agreed that "people paying more at the pump, which is causing so much stress in people's lives, is being used as a political football right now." But she added: "I think getting to the heart of how Shell continued to buy Russian oil even days after the invasion, the fact that Sheffield cashed in on stock weeks after the invasion of Ukraine, it makes sort of discussable the credibility of these players. This is one of those instances where their actions are going to speak much louder than their commitments or their words."
History tells us that gas prices will come down at some point. But it's less certain who'll take the weight of the political fallout from the trauma at the pump.
We know from the polls that there are few professions less highly regarded than members of Congress, but business executives aren't far behind. And Trahan's pointed questioning here will likely resonate among voters who don't appreciate their failure to restrain their personal and corporate greed.