Monday, January 30, 2006

Exxon Profits from High Energy prices

Is this good or bad? Most consumers filling their tanks at an Exxon (Esso) service station probably think Exxon's profits are iniquitous. But surely, we should expect Exxon to make good profits when product prices are high; shouldn't we? I mean if they can't make a profit now, when could they? When oil was $10 a barrel (not so long ago) I didn't hear much rhetoric then; when gas/petrol prices were low and sustaining economic growth of the rest of the economy.

Does Exxon contribute to "global warming"? Or is it those same consumers again? You could say it's a symbiotic relationship - the one cannot exist without the other. So, if all the hairshirts would like to sell their gas-guzzlers and get on their bikes, I suppose all would be well - no greenhouse gases and no Exxon to complain about! Except it will never happen. Even hairshirts have to travel to their favorite anti-oil industry rallies!

Meanwhile fellow super-major BP has its own "info-mercial" campaign, currently running in the Daily Telegraph. You see, BP used to stand for British Petroleum. Now its stands for Beyond Petroleum. Even though most of its revenue and probably all of its profits are still generated from petroleum it wants us to believe otherwise.

Personally I would rather go with Exxon on this one. At least they are true to their identity!

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