Oil Executives Reaffirm Larson Position: Speculation is Driving Up Energy Prices

FOR IMMEDIATE RELEASE: April 1, 2008

Contact: EmilyBarocas /202-225-7295/202-593-1377

Oil Executives Reaffirm Larson Position: Speculationis Driving Up Energy Prices

Washington, DC -- Today, executivesfrom the Exxon Mobil Corp., Shell Oil Company, BP America, Chevron andConocoPhillips agreed with Congressman John B. Larson (CT-01) that speculation in the futures markets is a major factorcontributing to the rising prices of oil and gasoline. Congressman Larson announced a legislativeinitiative yesterday to take speculation out of the oil markets. His proposal will drastically change themarkets by requiring that investors in the market be able to take delivery ofthe petroleum product in which they are investing. This will eliminate the speculators from themarket who are driving up the price of oil.

Congressman Larson said:

"The concept ofsupply and demand in the oil and gas market is broken. Prices are out of control. When senior citizens have to foregoprescription drugs and food in order to heat their homes and fuel their cars,something must be done."

The House Select Committee on Energy Independence and GlobalWarming held a hearing of the oil executives. Upon questioning by Congressman Larson during the hearing, Stephen Simonof Exxon Mobil Corp sited speculation in the futures markets as one of themajor causes of the exorbitant oil and gas prices we've seen. Executives from the other companies agreed.

After the hearing, Congressman Larson said:

"It is a rare daythat I agree with major oil executives on much of anything. But, it is obvious that speculation in the oilfutures markets is a major factor in the distortion of the marketplace. This has thrown the market into chaos suchthat the laws of supply and demand and the integrity of our system are atrisk. I believe this legislation willcorrect the abuses and distortion we've seen in the market and give consumers achance to get fair prices at the pump.

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