Consumers facing high gas and home-heating costs could see some relief in a new plan touted by U.S. Sen. Dick Durbin, but the oil industry says the plan is a knee-jerk reaction that doesn't address the real problem.

The Democrat slammed the big five oil companies - BP, Chevron, Shell, Exxon Mobil, and Conoco-Phillips - for reaping "windfall" profits of almost $1 per gallon of gas on the backs of Illinois consumers.

Consumers would get some of that money back under his plan, Durbin said.

First, half of oil company profits made whenever prices rise above $40 per barrel would be taxed, creating an estimated $40 billion pool of money.

Part of that would fund rebates to consumers of as much as $150 the first year. Future rebates would depend on crude oil prices.

Another part of the fund would establish a Low Income Home Energy Assistance Program to help low-income families pay home-heating bills. The trust fund would be fueled with $3.1 billion the first year.

Another $1 billion would fund an incentive for car makers to produce more fuel-efficient vehicles. Durbin said such vehicles and renewable energy are the long-term fuel price solution.

He told a story about a Ford dealer who laughed at him and his wife when they tried to buy an Escape Hybrid. The dealer didn't have one, nor did he know anyone who did.

"The demand is out there, but the supply isn't there," Durbin said.

But lack of supply - of the crude oil variety - is the real blame for high prices, not corporate greed, according to the National Petrochemical and Refiners Association.

Spokeswoman Sharon Dey said higher gas prices were a long time coming as world demand for crude is skyrocketing, particularly in China and India. World supply hasn't kept pace.

"Supply, supply, supply, that's the answer," Dey said. "If you don't want to be dependent on foreign resources, create your own."

Association President Bob Slaughter said in a written statement that the market will force gas prices back down once refineries recover from Hurricanes Katrina and Rita.

Slaughter said Durbin's idea of taxing "windfall" profits was tried in the 1980s when the only impact was discouraging U.S. oil production.

"Policymakers have a choice," Slaughter said. "They can turn the clock backward to the failed policies of the past, or they can make increasing the nation's supply of oil, oil products and natural gas the No. 1 public policy priority."

Durbin's perception of excessive oil company profits is unfair, Slaughter said, because it doesn't consider below-average returns through most of the 1990s, or the risk to and costs of the refinery business.

Cutting into profits will hurt the industry's ability to build new refineries, Slaughter added. The average cost to build a refinery processing up to 200,000 barrels of oil a day is about $3 billion, Slaughter said.

"In short, company revenues can be in the billions, but so too are the costs of operations," he said.

Durbin plans to meld his bill with two similar proposals when the Senate reconvenes. He shucked off criticism that his plan was unfriendly to business.

"Running gas prices through the roof is unfriendly," he said.

Oil: Industry says answer lies in increasing supply