Exxon CEO Says Oil Prices Not Yet Hurting Economy

Exxon CEO Says Oil Prices Not Yet Hurting Economy

billingsgazette.com

Associated Press | Posted: Wednesday, March 9, 2011 5:25 pm

"Exxon Mobil CEO Rex Tillerson said Wednesday he doesn't think the recent jump in oil prices is hurting the U.S. economy _ at least, not yet." ....

(visit the link for the full news article)

The article continues with:

"The head of the world's largest publicly traded oil company said that in 2008, when oil surged to near $150 per barrel, Americans didn't change their driving and spending habits until gasoline prices topped $4 per gallon. Average gas prices peaked at $4.11 in July that year."

and:

"Gas at $4 a gallon "creates some real challenges" for average American families and their household budgets. When the price rises above that, it's a "significant emotional event for a lot of people," he said."


You think so?


"Tillerson pinned the rise in oil prices on the perception of future shortages rather than actual problems. He said traders are pricing in a "risk premium" to account for Libya's political situation. Oil executives in both Saudi Arabia and the U.S. have made similar statements. At an energy conference in Houston, Youcef Yousfi, the Algerian Minister of Energy and Mines, said, "There is no shortage of oil in the market."

"Tillerson said Exxon Mobil Corp. was recently forced to stop buying Libyan oil because of U.S.-imposed sanctions, yet the company didn't have trouble finding other sources of crude."

"And we're unaware of anyone who is having difficulties."

So the recent increases are all about perception that shortages may occur rather than reality of the situation as it now exists.

Thanks for confirming that Mr. Tillerson; I am sure that with your knowledge of the real situation, that NO Exxon/Mobil gas stations have increased their prices recently...correct???





billingsgazette.com
(visit the link for the full news article)

I don't know much when it comes to the oil game. but I do NOTICE that when there is shortages, they profit, surplus, they profit, when gas is cheap they profit, when it is high, they profit, etc...etc....etc.....

now when all that happens, I DON'T profit, I struggle.

reply to post by manta78


Liars.

I get so mad every time I drive buy a gas station I can't express it in words. This is all a false price hike by wall-street.

What is going on should be criminal. How many bankers are in jail from all they've done? I think their time is running out. People are waking up.

who's this d-bag to say who's not hurting in the economy. what a lark...
and he'll post record highs once again at the end of the quarter, mark my words.

what a douche bag.

it doesn't change peoples driving habits? well we all have to keep going to work! that doesn't change.
and you bet it changes peoples habits and their vacation time with family and everything else. food, basic essentials, etc.

what a crock. he needs to be smacked in the mouth. idiot.

reply to post by manta78


Well it is not hurting his economy, now is it?

See photo #3, and this is not the only property he owns by a long shot.

hubpages.com...

Here is his Bio from Forbes: people.forbes.com...

You have to think of it this way: He is a shareholder, all shareholders make money off you when the price of their
commodity(Gasoline) goes up. So when they pay more ot the pump, they figure they are giving themselves a dividend. They Joke about it at the club. Do you get it now?

reply to post by Wildmanimal


I am very much aware that the oil companies are in it for themselves, and their shareholders, not the consumer, and the "traders" are taking advantage of the situation, once again. I guess it would be nice for a change (in an ideal world I suppose), for a CEO of a oil company who has publicly stated that the shortage is not real to hold the line so to speak, and not increase gasoline prices to their suppliers, at least with reference to his own Exxon/Mobil brands.....Nah, just wishful thinking I guess......

He doesn't know what he is talking about. As asst mngr of a farm supply store I see it first hand.

All of my name brand feeds have gone up and still sold relatively well...but since the dramatic rise in oli/ gas...they have all stopped moving. What is selling well are the generic low end feeds that are 3-5 dollars cheaper...can't keep enough in stock.

Also, many people were buying high end, high protein dog foods for their dogs..we have a lot of dog breederes and pet owners buying Diamond at about 33 dollars a 40lb bag. But since gas has gone up...the avg shopper has switched back to mid-low end feeds like Purina Chow... in fact, Ive had to cut my preorders on the high end feeds and my lowend feeds are blown out.

I guess people aren't gonna let their animals eat better than the owners.

Also, our mower and equipment sales are down from last years sales... I have stacks of mowers in the boxes and no buyers...

This translates into backed up inventory...which means cut backed orders...which means the 3rd shift in distribution gets cut...which means the folks at the manufacturing and assembly plants cut back hours and payroll... which means trucking and distribution cuts back to fight high gas and light loads... which means fewer jobs...which means less disposable income...which means fewer mower sales... which means cut backed orders...

No, Mr. Tillerson, not yet. At least if you mean the big picture. Drill down deeper, sir, and not for oil, but to the small picture, the little people. Hell, Mr. Tillerson, if gas were $100 a gallon YOU could still afford it, or begin to change your driving habits.

The fact is, sir, that my friends have already been hurting from the economy, and with the recent rise in prices some could no longer take their kids out for ice cream at a mom and pop business down the road.

So goes oil, so goes our economy. President Carter was right. We needed to be energy independent.

When the Iraqi 'war' started we were told we would face higher oil prices 'because of the war' Even though we didn't get a drop from iraq at the time and Opec actually lowered prices. Exxon reported record EVER profits during that quarter at the start of the 'war'


I say boycott Exxon. Americans won't do without gas but we can boycott the big guy... make them feel the pinch

reply to post by zorgon


I remember the opposite re Iraq war and oil prices

President Bush’s senior economic advisor at the time — argued in 2002 that the Iraq war would increase oil supplies and lower prices. From the Washington Times, 9/19/02:

As for the impact of a war with Iraq, “It depends how the war goes.” But he quickly adds that that “Under every plausible scenario, the negative effect will be quite small relative to the economic benefits that would come from a successful prosecution of the war.”

“The key issue is oil, and a regime change in Iraq would facilitate an increase in world oil,” which would drive down oil prices, giving the U.S. economy an added boost.

source

It might have been a rise in the very short term. Remember how the war reconstruction was supposed to have been paid with oil revenue?

edit to add....interesting, then, so the "rise" was a ruse to wring more money out of us. I wonder, though, if that corporation would ever feel a pinch from us? What could be done?

reply to post by zorgon


Who would you suggest as an alternative? I hear Sunoco is oil from U.S. territory. I can do the research easily,
but I would like to hear your opinion.

Thanks

Years ago I worked at a gas station and I saw the big trucks come in and fill the tanks. I don't recall the exact time frame between trucks but it was at least a week between visits. Let's say that I didn't pay a whole lot of attention at this job.
Now the owner has paid (for example) 3.00 per gallon for the tanks to be filled. The price for gas is then marked @ 3.02 - what you pay @ the pump. A day or two later, gas prices go up and where you paid 3.02 you're now paying 3.12....I don't understand WHY this is, because the gas you're pumping has already been paid for, has it not? The truck hasn't been back & delivered higher priced gas. How can they declare the price went up on it when they've already paid for it? Is it not already sold to the station when they fill the tanks? Why can they declare that the first 1,000 gallons are worth 3.02 each, and the next 1,000 are worth 3.12?

reply to post by desert


Hey Desert, I remember that propaganda as well. But on my radio it was more like "The price of fuel will
experience temporary fluctuations, until the Iraqi oil fields are secure. At which point the price at the pump
is expected to stabilize below 2 dollars per gallon". Yeah, and I foolishly believed that and all the other lies
(weapons of mass destruction) intel spouted on a daily basis as well. Then when the "establishment" took the
money and ran, I knew i had been hoodwinked.

reply to post by sykickvision


It is called Price Gouging. Many municipalities have laws against it, and fines to back up the laws.
Here in my state, that was on the table for serious discussion and vote. None of the politicians showed
up that day. From either party. Talk about corruption. This is a true story. In the news at the time, but downplayed.
Not one showed up to vote. The inquiry was shelved. I just purchase less petrol now....motorcycle.

Originally posted by desert
I remember the opposite re Iraq war and oil prices

As for the impact of a war with Iraq, “It depends how the war goes.”

Well two things... 1) your memory is faulty OR you were listening to the 'party line' 2) we were NOT at war with Iraq... it was called "Operation Iraqi Freedom"

War propels Exxon profits to record $7bn
www.guardian.co.uk...

EXXON Mobil (Oil Company) Makes RECORD Profit! Wait, How Can This Be?
answers.yahoo.com...

Exxon Mobile Excess profit research
www.abovetopsecret.com...

Can they feel the pinch? YES if there was a coordinated effort across America to buy gasoline from anyone OTHER than Exxon or their subsidiaries. It would be impossible to organize a gasoline boycott because Americans wouldn't give up the car, but if the majority went to a competitor it would only take a few weeks to send the message

reply to post by sykickvision


My husband also worked at a gas station years ago and wondered the same thing.

Answers, please, someone.

Also, now that gas stations make money on the customer going into the store to buy stuff (food, drink, snacks, etc), a woman interviewed on a news bit said that people are filling up but not buying the other stuff. That's gotta hurt the gas station owner, but I doubt the giant corporation. Sad.

reply to post by Wildmanimal


In this country, we all got hosed.

I remember saying, "If diesel reaches $1.69, I refuse to drive to Oregon!!" I guess I got boiled slowly in the pot like a frog.

Originally posted by manta78
The article continues with:

"The head of the world's largest publicly traded oil company said that in 2008, when oil surged to near $150 per barrel, Americans didn't change their driving and spending habits until gasoline prices topped $4 per gallon. Average gas prices peaked at $4.11 in July that year."

IMO That is because most of the oil is not used by the consumer, it is for companies moving product and people - they can afford to keep their stuff moving - the average person will sacrifice just about everything else before their driving, probably even starve themself because they need it to get to work etc.

These fat cats see this and just keep the prices up - they don't care if youre starving. They want to see what they can get away with - notice how the price didnt keep going much higher than where people make changes to their oil consumption - this is because they were finding the point where the majority would still be alright. It shows the price was controlled IMO and not set that high out of necessity.

Cunning, but not the smartest play if you ask me - if more people are dying because they are cutting down on other essentials such as food, heating, medicine etc then that is money they dont get when they die - and again people will cut down on other essentials because they often need to travel to work to keep the money coming in. They should be more concerned about long term profits than short term - unless ofcorse they are thinking of short term profits because they know something we dont...

Nope won't hurt the economy at all...

I just won't go to the movies.

I won't eat out as much.

I will spend my vacations at home in front of a TV instead of being a high spending tourist.

I won't by my numerous younger relatives toys anymore.

I am glad my cutting back won't hurt the economy at all.

reply to post by Vikus


Touche!