Exxon CEO: We're not gouging

[NeoConsSuck]

DALLAS (Reuters) - The current high price of gasoline at the pump was not caused by a problem with crude oil supply or corporate greed, but by factors such as political uncertainty in the Middle East, Lee Raymond, chief executive of Exxon Mobil Corp., said Wednesday.

Raymond said he wanted to remind consumers the two biggest factors in the price of gasoline at the pump were crude oil prices and taxes. He estimated the company's profit was only around five cents a gallon.

"There is adequate supply everywhere in the world," Raymond told reporters after the company's annual shareholders meeting.

He also dismissed notions the Organization of Petroleum Exporting Countries (OPEC) and its kingpin, Saudi Arabia, could not come up with policies to tackle the high cost of crude.

"I think you need to be a little cautious if people are concluding that the issue is out of OPEC's and Saudi Arabia's hands," he said. "I think it is a harsh conclusion not supported by the data."




http://money.cnn.com/2004/05/27/news/fortune500/exxon_ceo.reut/index.htm

[unblock]

1. and yet, they're making out like bandits

keep in mind that domestic producers were making a profit when oil was $25/bbl. now that oil is over $41/bbl., they can pump the same gas and pocket an extra $16/bbl. plus, it has become profitable for them to go after the harder-to-get-gas, e.g., from oil that costs $25-30/bbl.

they can argue all day about whether or not they have the power to keep the price down, but they can't argue that they're not getting exceptionally rich as a result of the situation.

[ayeshahaqqiqa]

2. The guy's being a bit disengenuous

According to NPR, the producers and refiners are the ones making out like bandits, with profits nearly doubling. The one person in the supply line who is not is the local gas station. That guy is the one making around 5 cents a gallon.

[aquart]

3. And the CEO's salary and bonus amounts to..........?

[keithyboy]

4. Nixon: "I am not a crook!"

Same thing.

[leftyandproud]

5. They have no control over the price of oil on the commodity markets..

The price per barrel has been going up due to the middle east crap...opec cutting production...increased demand..a whole host of factors. Obviously, if you own oil, your bottom line will improve because of the higher price...but this doesn't necessarily mean you are CAUSING the higher price. If you buy ten ounces of silver on ebay for $60, and the price goes to $10.00 an ounce, and you sell them for $100, you make a nice profit off the sale, but you aren't "gouging" anyone, because the sale reflects current market prices. If your broker sells some of your stock for less than the current market price, simply because you are already "up" on the stock from your buy point, he may look nicer to the one buying the stock, but he is still making a stupid decision...and won't be in business for long.

knowhatImsayin?

[ClintonTyree]

6. WTF?

"The current high price of gasoline at the pump was not caused by a problem with crude oil supply or corporate greed, but by factors such as political uncertainty in the Middle East, Lee Raymond, chief executive of Exxon Mobil Corp., said Wednesday".

So where does this extra money, you know, the extra money we pay for "political uncertainty", go? He's making it sound like it goes into a "political uncertainty" fund that, after the "political uncertainty" is gone, will be returned to the consumer. Bullshit. They're factoring this in "just in case" there is "political uncertainty" and it goes directly into their coffers. We'll never see it again, and for them to say that it's not gouging is a damnable lie. They're having record profits after last year's record profits.
Of course our government (both Democrats and Republicans) buy this crap every year. Funny, there's NEVER any proof of gouging year after year.
The fact that this Maladministration is so closely tied to big oil makes it more of a farce than usual. It makes me sick. Every year they get away with it, and our lawmakers do NOTHING!

[dbt]

7. It's called "test marketing."

It's designed to see how far up corporations can push the price of a gallon of gas before it starts to hurt sales. I figure $2.50 is the point of diminishing returns.

Since bu$h took office, we've had a couple of these price increases, and we've had the threats of a couple of investigations by the Senate into the price increases. IIRC, gasoline prices have fallen each time that it looked like an investigation was likely. And preceding each investigation, we have heard the oil corps(e) explain how it wasn't as simple as it looked, nobody was getting rich, it was very complex, supply and demand, yadda yadda.

Same Shit, Different Day.

:hurts:
dbt

[salin]

8. if your profit is only 5 cents per gallon... and you aren't sellling more

gallons... then how do you explain soaring profits among many of the giant oil companies (who amazingly all charge about the same exact thing?)

[SEpatriot]

9. Well, there you go...

If an Exxon CEO says it, well it must be true. This guy should be take Scott McClellan's job:

"The casualties in Iraq were not caused by war."

"The unemployment rate is not caused by lack of jobs or Bush's policies."

"Massive tax cuts for the rich are not the cause of deficits."

"White is black. War is Peace. Love is Hate."

Gimme a break!!

[dusty64]

10. Well thats that then.

He said it so it must be true, we'll ignore their skyrocketing profits cause its purely coincidence. Move along now.

[Triana]

11. At Exxon, they don't have to care...

...they're part of the problem.

[Spentastic]

12. Yes

In other news, that's not really my cock in your mouth either.

[BiggJawn]

13. Raymond: "So stop SAYING that!"

"Everyone Loves Raymond" especially if they're EXXON stockholders.

Let's keep an ear open for the 2nd quarter earnings report. I'll bet the oil companies will all be cheesing about how they posted "healthy" earnings...

[Buns_of_Fire]

14. Okay, Lee, I believe you.

We'll just let these nattering nabobs of negativism have their say. I know that you, like so many American CEOs, only care about the welfare of your employees and the long-term strength of your company and your country, and the quarterly profitability awards and worth of your stock options don't enter into it one bit (so stop saying that). I believe you, Lee. Really I do. And when they come to hang you and your brethren by your entrails, you can bet I'll be there at the gates of your estate to help hold them off...

...if I can afford the gas to get there, of course. :evilgrin:

[BeFree]

15. Political Uncertainty, eh?

Well, whose fault is that? Why is there 'Political Uncertainty' in the Middle East?

Is it because the US invaded? Gee, ya think? Is it because everyone in the Middle East is now flat fucking scared of the US? Not only scared, but hating us as well?

The CEO of Exxon says it all, does he not? The policies of the US have caused oil prices to soar. The CEO of Exxon is claiming GW* is too blame.

Pretty damn clear to me.