In a scene reminiscent of the congressional hearing where tobacco company executives innocently denied that nicotine is addictive, oil company executives solemnly told Congress last week that their exorbitant profits are no big deal. One even suggested that closing big oil’s tax loopholes is somehow “un-American.”

Tell that to Americans struggling to make ends meet as they cope with $4-a-gallon gasoline and the economy gets hit with a sudden inflationary spike because of rising fuel prices. Meanwhile, oil companies report record earnings. To top it off, BP acknowledges that taxpayers, in effect, are being asked to pick up part of the cost for BP’s oil spill in the Gulf of Mexico.

Under questioning from Florida Sen. Bill Nelson, BP America Chairman and President Lamar McKay defended as a “standard business expense” the decision to seek a tax write-off for the costs associated with the spill, which would generate $11.8 billion in tax savings. Considering that much of the cost involves compensation for victims and legal expenses associated with the spill, it’s wrong to ask taxpayers to pick up any of it. This is no ordinary cost of doing business — there’s nothing “standard” about it.

“Surely, the Gulf oil spill was the result of wrongdoing, and yet you want to claim that as a tax credit,” Nelson said.

BP, he added “may be entitled to this under the law, but that doesn’t make it right.” Exactly.

Like most congressional hearings pitting righteous lawmakers against clueless executives, this one had an air of political theater. Democrats sense they can score easy political points on a populist issue by condemning the oil industry at a time of rising fuel prices. Industry leaders gladly complied by failing to acquit themselves very well.

Democrats want to eliminate industry tax breaks — i.e., loopholes — amounting to $2.1 billion and use that money to cut the deficit. But Rex W. Tillerson, chief executive for Exxon Mobil — No. 2 company in the world last year with $370 billion in U.S. revenue — was having none of it. He said he would support repeal only if other loopholes were closed too. “Everything for everybody everywhere ought to be on the table.”

Yet these oil companies are among the most profitable in the world — eight of the top 11 revenue earners are oil and gas corporations. Eliminating some of their tax breaks makes sense, considering that they amount to $4 billion — and the five major oil companies reported $35 billion in first-quarter profits.

The larger issue is how to cut the rising federal budget deficit and growing overall U.S. debt. At a time when so many companies, particularly small businesses, are having trouble staying alive, top revenue earners should be expected to make a bigger contribution.

Yes, the tax code has to be reformed and a review of all loopholes, tax subsidies and special exemptions will be required. But when a company like Conoco/Phillips issues a news release calling the Democrats’ tax proposal “un-American,” it suggests industry leaders are out of touch.

The same company recently reported a 16.6 percent return on share price. Its profits in the first quarter this year were 43 percent above the same period last year.

“Everybody everywhere” isn’t doing that well.