Gov. Jim Doyle summoned an administrative hearing at the University of Wisconsin-Milwaukee’s School of Continuing Education on Thursday, Dec. 1, in response to the record profits made by oil and gas companies in the middle of Hurricanes Katrina and Rita.

Executives from the world’s five largest oil companies appeared to answer questions from an examiner panel.

Doyle said that the rising oil prices deeply affect people and businesses all over the state. He said that his main concern is for the low-income families that may not be able to heat their homes this winter.

“We want to help the hardworking families that struggle to make ends meet,” he said, as he discussed his Energy Help initiative and its commitment to assist families and businesses in meeting the high cost of energy.

Part of the plan is to provide $16 million in funding for bill payment assistance to low-income families.

“Wisconsin doesn’t have the power to change the problem, but we do have the power to answer questions and pass on the information that we obtain to Congress,” Doyle said.

Prior to the official hearing, he said he was hoping for “clear, simple, direct answers” from the oil companies.

State officials on the panel grilled the oil executives from British Petroleum, Chevron, ConocoPhillips, ExxonMobil and Shell Oil on sales, distribution and pricing of energy and the justification of reaping record profits following the two hurricanes, citing the 70-cent increase in gas.

The executives blamed Hurricanes Katrina and Rita as the reason for such high prices, noting that after the first hurricane, production in the Gulf of Mexico was completely shut down and most of the infrastructure was destroyed.

Brent Faulk, vice president of Natural Gas Trading for Chevron, said that one-third of the country’s natural gas production was ruined in the Gulf. Faulk said that as the companies recover, demand grows faster than supply, making the market extremely tight. He said consumers must be patient in waiting for price stability.

The future of the market is unclear, each panelist testified, but all agreed that reinvesting profits is the key to growth in the market and the best way to prevent future crises.

In the last two weeks, the governor’s office received hundreds of questions and comments from concerned citizens across Wisconsin for the oil company executives.

In a second part of the hearing, three Wisconsin citizens replaced the oil execs on the panel. The panel included an energy assistance beneficiary, a member of the Waukesha School Board and John Antaramiam, mayor of the city of Kenosha.

“Whether it’s federal or state level, an energy policy must be established,” Antaramiam said. The mayor said he fears that no matter how much his administration tries to help citizens meet the rising costs of energy and fuel, they will not succeed.

Antaramian cited services like snow plowing, garbage pickup and police patrols as examples of where expenditures have suddenly increased, and how any government only has a limited budget to work with.

“I doubt any city, town, village or board budgeted (for) such a high energy cost. Unfortunately, it is taxpayers that are burdened, and certain programs and services are sacrificed,” he said.

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