The Associated Press | Posted: Monday, January 30, 2006 6:00 pm
The oil industry’s stellar financial results renewed talk among some politicians for action to force the industry and the nation to invest in alternative energy sources.
Rep. Edward Markey, a Massachusetts Democrat, said he planned to introduce legislation on Tuesday mandating that all cars sold in the U.S. be able to run on both gasoline and ethanol, a corn derivative.
Others threatened a windfall profits tax that would push companies to invest even more in new production and refining capacity.
Sen. Barbara Boxer, a California Democrat who sharply criticized oil executives appearing before Congress in November, on Friday said the Bush Administration and Federal Trade Commission needed to “put an end to gouging.” She then suggested that FTC stood for “Friend to Chevron.”
On Monday, the eve of President Bush’s State of the Union address, Sen. Chuck Schumer, a New York Democrat, weighed in.
“The federal government has a responsibility to make sure that these companies continue to innovate instead of just profiting from the status quo,” he said. “These companies should be investing in developing new sources of fuel and new technologies, like hydrogen fuel cells and alternative fuels, that will ease our dependence on foreign oil and help consumers save.”
Market analysts said they are not worried about any political fallout from the industry’s soaring profits.
“I hope the capitalist system would promote and applaud the hard work of companies that have been smart and lucky to achieve good earnings for shareholders,” said Tina Vital, analyst for Standard & Poors.