Exxon Skimps On Oil Production To Boost Profits

Reports of slackening demand sent oil down another 2.5% on Thursday to $101.84 per barrel. Crude prices have declined 7.6% since the beginning of the week. Not long ago, that would have been an astonishing plunge that shook the trading establishment. These days? Nah, that's just the ho-hum volatility in the oil market. But how is it that crude can still trade above $100 a barrel, three times what it sold for at the start of the decade, despite a very wobbly economy?

If you want to understand that, it helps to listen in to ExxonMobil's (XOM, news, msgs) presentation to analysts in New York City in early March. Halfway through the three-hour meeting, Exxon management flashed a chart that showed the company's worldwide oil production staying flat through 2012.

Ponder that for a minute. Exxon is the largest publicly traded company in the energy business. In fact, it's the most profitable company in the history of capitalism, earning a record $40.6 billion last year on sales of $404 billion. Yet even with crude oil prices near all-time highs, Exxon isn't planning on producing any more oil four years from now than it did last year.

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Comments

[craneman]

Since when is it a crime to be screwed by any American Company?

[esquire07]

Oil profit is ALL THAT MATTERS. "The Decider" sent US troops to die for Oil profits and fill his own pockets. The Criminal Cheney lied to the Nation to fill his own pockets.

Exxon will not be stopped - really nothing anyone can do - they own the Government. Big trouble ahead. Watch as America tumbles into a facist dictatorship- its peopel enslaved to corprations.

It was nice while it lasted, but the American dream will soon turn into the American nightmare. But so long as the Oil rich have their places in Dubai, what does it matter ?

[BillKen]

If the behavior of an individual was detrimental to the national interest that individual
would be ridiculed for being unpatriotic or maybe even treasonous. How is it that
corporations can act in a way that is detrimental to our national interest but nothing is said? We as citizens give our children's lives and our taxes to further our national goals,
but the only thing corporations appear to be doing is taking our money, killing our children
and telling us all to go to hell. Where the hell are our discounts and other bennies that most corporations give their best customers? We need to see some corporate and shareholder sacrifice, after all, they are benefiting, not us. We are just getting screwed.
God bless the Corporate slave society and the t?rds who support it. Semper Fi

[Boboday555]

Exxon executives: the real rulers of America!

[wolf58]

BOYCOTT ALL EXXON MOBIL PRODUCTS


take back America one oil company at a time

The New Boston Tea Party

[MissingAmerica]

What a shock!

[mydogshakespeare]

Ah, the satisfaction from profit in market capitalism perversion.

[vippy]

Between 2004 and 2008 the income of our congressmen/women went up 84%. Do you believe they would reign in the hedge funds and the oil future's market with that kind of return? Did you believe
they are working for you? And we are about to fall for it again for we let the good candidate who
suggested change, get away. So you are the blame!

[TurgidCaterwauling]

Then: "Are you better off now than you were four years ago?"

Now: "Will you be better off four years from now than you are today?"

[ReasonIsMyReligion]

At least 90% of us would say "no."

At least 99% of us SHOULD say "no."

[darker]

BIG OIL and Cheney faked the biggest RIP-OFF ever of middle-income Americans.
Bush-Cheney & Company faked the Iraq FOR-PROFIT INVASION.

It's all about THE MONEY they can vacuum clean from USTreasury's middle-income Americans' tax money to hand over to their NANNY STATE FOR THE RICH & CORPORATE WELFARE QUEENS.

Enjoy paying, Americans!

[sofondajanefonda]

I haven't used an Exxon gas station since the Valdez spill (which I hear they still haven't paid for). An easy boycott.

[lisakaz]

Me neither. And I'm hardly surprised. Bu$hco has given 'em free license to be thieves.

[bushmocker]

It doesn't mean squat to boycott Exxon unless its's on a large scale and that can't happen because there's only so much to go around .If everybody boycotts Exxon and goes to a competitor ,that competitor will end up short on supply and purchase what's needed from whoever has inventory,yeah,you guessed it,Exxon.All that would happen is an Exxon franchise in your area would go out of business and possibly you'd have one less place to purchase your gasoline,but Exxon wouldn't lose a cent.

[WIpatriot]

I've already explained to people wanting to boycott some oil company that they don't know what they're talking about.

The only way to make an impact is to use less.

Then, the price will be raised to keep sales at the same level, and you are right back where you started.

The only way is to get off the grid as much as possible.

[dr4Will]

do you think the bush suckers would do anything about it--they are the worse crooks in the history of our country-

[bushmocker]

Actually they're the best.

[WIpatriot]

Amen.

[Mormondude]

Oh come on. If Exxon can maintain the same level of production despite Hugo Chavez backing out of all Venezuela's oil deals, they ARE increasing production from other sources.

The unasked and unanswered question is why we aren't producing oil from our own oil shale in Montana? They can produce it and make a profit on it at $50 per barrel. We should be ramping that up, yesterday. It's exactly the threat we need to keep OPEC in line.

Of course the libs are still in hysterics over Gore's global warming snake oil. But this is a national security issue now. Every presidential candidate in both parties has said we need more energy independence. Well, what are we waiting for?????

[HHR]

Yeah, and to hell with the environment, I guess. I suspect increased strip mining of the west for coal is part of the answer, too, eh? Oh, and, naturally we're to believe that global warming is a myth. My, it's good to hear from such an enlightened source.

[Mormondude]

You don't bother to look at much of the data, do you?

http://www.dailytech.com/Temperature+Monitors+Report+Worldwide+Global+Cooling/article10866.htm

http://www.theaustralian.news.com.au/story/0,25197,23411799-7583,00.html

None of the models showing catastrophic warming take into account the most recent data. Those scientists that have now made their careers on hyping global warming haven't decided how to break the news to people yet.

[glesslib]

And, Ladies and Gentlemen, don't forget to vote McCain in November. I am sure George and Dick will sit him down and explain what Jesus knows about the oil companies and Exxon can count on business as usual with the GOP in charge for four more years.....wtih not an energy policy in sight.

[bronceye]

Never before to this degree, but it is a business strategy that has worked for 30 yrs. The gov't. should take over all of the wells that have gone fallow for the last 3 decades and start a federal energy dep't. with it. Europeans pay a lot for gas but the money goes for health care, pensions and training. Here, the money goes for creation postal stops in the Caymans. I predict that in Oct.-Nov. this year, there will be an announcement of a shortage of heating oil. Prices are shooting up with such peculiar regularity that they aren't even pretending that there is a shortage. Gas and diesel go up in March-April, heating oil goes up in Sept. and the prices don't come down. Why do people act amazed and say that the"Oil Co.'s" should find alternative energy?