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Congress probes oil industry, gas prices
Task force wants to know if mergers, stock buybacks linked to short supplies. Friday, May 18, 2007By H. Josef Hebert The Associated Press
Washington While oil companies blame soaring gasoline prices on unexpected refinery shutdowns, Congress is questioning whether industry mergers and investment decisions have erased a supply cushion.
The House Judiciary Committee's antitrust task force Wednesday opened the first of a number of hearings on oil industry concentration with its chairman noting that gasoline prices have soared well above $3 a gallon and asking, "How did we get into this mess?"
"Oil companies today are enjoying record profits, and while they could use those profits to invest in more production capacity, instead they use the money to buy back shares in the markets," complained Rep. John Conyers Jr., D-Mich., the panel's chairman.
2007-05-21
16:41:39
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