Opinion In Brief
On Thursday, ExxonMobil Corporation became the first company ever to annonce quarterly revenues of more than $100 billion, having achieved a record $9.9 billion in profits for the same quarter. This despite the twin disasters of Katrina and Rita that hampered production and disrupted supply lines across the country.
On Thursday, ExxonMobil Corporation became the first company ever to annonce quarterly revenues of more than $100 billion, having achieved a record $9.9 billion in profits for the same quarter. This despite the twin disasters of Katrina and Rita that hampered production and disrupted supply lines across the country. The reason – higher gas and oil prices.
It would stand to reason that higher prices would be needed to stave off demand during times when production is crippled, but the degree to which ExxonMobil has profited should raise questions among even the most ardent of free market supporters. Indeed, even Senate Majority Leader Bill Frist (R-Tenn.) has ordered hearings on the subject.
Unlike its competitors, ExxonMobil will not be using its financial windfall to invest in alternative energy, nor will it be investing in any new refining capacity or oil exploration that could help increase supply and lower prices.
As the world’s largest oil company, ExxonMobil is an industry leader. It seems unwilling, however, to lead away from dependence on a diminishing oil supply that will continue to fuel its record profits.
