Malone's remarks were echoed by John Hofmeister, president of Shell.
"The fundamental laws of supply and demand are at work," said Hofmeister. The market is squeezed by exporting nations managing demand for their own interest and other nations subsidizing prices to encourage economic growth, he said.
In addition, Hofmeister said access to resources in the United States has been limited for the past 30 years. "I agree, it's not a free market," he said.
The executives pushed the idea that large parts of the U.S. that are currently closed to drilling - like sections of Alaska, the Rocky Mountains and the continental shelf - should be opened.
"The place to start the free market is in our own country," said one executive. [The drilling ban] sets the stage for OPEC to do what we are doing in our own country, and that is effectively limiting supplies."
The oil companies make about 8.4% profit. The average profit margin for American companies is about 7.9%. So while they are a little higher, the numbers are within reason. I find it laughable that Congress (who takes about 18.5% in taxes) are blaming companies that take 8.5%. After all the companies are producing this product. The government is getting more than double what the companies are getting, and they do absolutely nothing for this money.
As a matter of fact, the government is already cutting the oil companies legs out from under them, by not allowing them to use the recourses underneath this country. Let alone allowing new refineries to be built. The Senate needs to open up the areas that can be drilled. I am getting tired of seeing our President beg OPEC for mercy.
Congress needs to take a good look in the mirror to see the real problem with the soaring gas prices.
Drill Our Oil!