Big Oil CEO: Blame Oil Prices, Not Us
May 8, 2006 — -- Amid rising anger over high gas prices, the CEO of ConocoPhillips spoke out today on "Good Morning America," saying high oil prices are to blame, not companies' greed.
In his first network television interview, James Mulva said oil companies were really only making about 10 cents a gallon because it costs them $70 to $75 to buy a barrel of crude oil and even more to run refineries and pay taxes.
He warned that the only way to get below $3 a gallon for gas was to reduce the cost of oil.
"The real question is what about oil prices -- will they remain at $70 to $75?" he said.
"How are we utilizing our refining capacity so we convert oil into gasoline? To the extent we do that really well, we add supplies and moderate the impact on the price of gasoline."
Some lawmakers -- including Sen. Charles Schumer, D-N.Y., who called on Sunday for some "old-fashioned trust busting" during an interview with "This Week With George Stephanopoulos" -- have called for government action against Big Oil.
Mulva insisted, however, that placing price controls on gasoline would hurt the economy.
"You put in price controls it holds down the price but increases consumption, which is not good," Mulva said. "Windfall profits tax takes away from the ability of the companies to reinvest to grow and add to capacity."
ConocoPhillips is the third-largest oil company in the United States. Forbes Magazine reported Mulva was paid $16 million last year and was given about $190 million in stock options if he leaves the company.
Mulva said his salary and compensation reflected the size of the company and the nature of the job.
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