Weekend Question 1: How Many More Legislators Could Porkopolis Bust for Exxon Mobil Hypocrisy?

Answer: Probably quite a few. So far he’s up to two, and he hasn’t even worked up a sweat.

His first find is Congressman Ed Markey (D-MA), whose House web site had this announcement on Thursday:

“On the eve of the first anniversary of the passage of the Bush Energy plan, Exxon Mobil said it earned over $10 billion this quarter, the second largest quarterly profit ever recorded by a publicly-traded U.S. company. While American families get tipped upside down and have their savings shaken out of their pockets at the gas pump, the Bush-Cheney team devises even more ways to line Big Oil’s pockets. The country is demanding a new direction, starting with tough fuel economy standards that will save them from more pain at the pump; unfortunately, the President is at the economic and diplomatic wheel of this country and is heading for a brick wall.”

His second is alleged GOP Senator Mike DeWine, who was noted by NewsBusters’ Mark Finkelstein as saying on ABC that “there’s something wrong when we’re paying record prices at the pump while oil companies are making record profits.” Finkelstein says, “He didn’t tell us just what was wrong, but I guess the message for folks back in Ohio was clear: ‘I care.’”

Why the charge of hypocrisy? Because, as Porkopolis notes, in both legislators’ home states, government-run pension funds have substantial investments in Exxon Mobil, and have benefitted from the huge runup in Exxon Mobil’s share price (3-year chart). If these two gentlemen were doing more than trying to score cheap political points, they would be demanding that their states’ government-sponsored retirement plans immediately divest themselves of ownership in Exxon Mobil and other (presumably evil) oil companies.

It just so happens that it might be a good strategy to dump oil stocks, because they may have peaked, but that’s beside the point. Pension funds hire professional managers to try to maximize returns; any other objective besides attempting to maximize returns (consistent with safety) is considered a breach of fiduciary duties under the Employee Retirement Income Security Act (ERISA) of 1974. As can clearly be seen from the linked chart, what’s good for Exxon Mobil has been good for the states and their employees.

In terms of energy policy and national security, Mr. Markey and Mr. DeWine would be well advised to cast votes supporting drilling in the Arctic National Wildlife Reserve, so that its supply can perhaps have an impact on worldwide oil prices, and so that the oil fields’ existence can provide at least a degree of protection against overseas supply disruptions.