It's the Environment, Stupid.

Friday, April 28, 2006

Another op-ed from ExxonMobil

It's no coincidence that ExxonMobil ran an op-ed ad (PDF link) entitled "Planting Profits" the same day the company announced its first quarter earnings.

The graphic on this op-ed is a pie chart of ExxonMobil investments from 2001-2005. The largest share of the pie is, of course, North America at 25%. Next is Africa at 15%, with Europe coming in a close third at 14%.

I'll leave the commentary today to ABC news who ran an article highlighting this "coincidence":
"On the same day it announced earnings of more than $8 billion for the first quarter of 2006, ExxonMobil placed advertisements in several newspapers claiming that its massive profits would not just benefit the company but would also be good for millions of Americans.

It was a preemptive strike against a public backlash from consumers who have grown frustrated paying high gasoline prices while big oil companies prosper. Exxon said its second consecutive fiscal quarter of massive earnings would not only benefit more than 2.5 million American shareholders but would also help the company expand refining capacity, explore the globe for new supplies and research new environmentally-sound technologies.

Sounds pretty good. But is it true?

Last year only 30 percent of ExxonMobil's $36 billion in profits went to investment and exploration, according to the company's own financial statement. Fifteen percent went directly to shareholders in the form of cash dividends, and the biggest chunk ā€” 40 percent ā€” was used to repurchase its own stock. Less than 2 percent of the company's profits were spent on research and development." (Read the whole article here.)


And if you don't want to click on the ExxonMobil PDF file to see the ad, I've included the text below:
When ExxonMobil is financially successful, it's good news for the more than 2.5 million Americans who directly own shares in our company, and the millions more who do through their pension, insurance and mutual funds.

Earnings are also important for meeting the world's future energy needs. Because they enable us to continue making vital investments that benefit everyone in the long run. In fact, over the last fifteen yeras our investments have exceeded our earnings.


In the last five years alone, we have invested $74 billion on six continents to search for new supplies, build new production facilities, expand refining capacity and deploy new, environmentally-sound technologies.
More than a third of this investment has been in North America - the remainder expands supplies for world markets, including the United States. Major developments are advancing with the promise of new energy supplies for Americans for many years to come.

Today, for example, we are unlocking the natural gas potential of Colorado's Piceance Basin; investing in new exploration and production projects in the Gulf of Mexico; progressing plans for two new natural gas pipelines from Alaska and Canada to the continental United States, with a combined capacity equivalent to 10% of today's U.S. consumption; investing in the world's largest liquified natural gas project, designed specifically to supply American consumers;and continuing to invest in our U.S. refinieries, where capacity growth over the last decade has outpaced growth demand and equates to building a new refinery every three years.

Our earnings go up and down with the business cycle. But our commitment to plan (and invest) for the future does not.

Oh - and one last thing, if you haven't already check out Sustainablog's posting about a press release from Oil Drum which analyzes the rhetoric coming out the of the White House about oil.

5 Comments:

  • yep, Business Wire did their earnings. i'm exceptionally sick to my stomach.

    By Blogger David Press, at 09:37  

  • Many say we will see $3.50/gal this summer. If you factor in Iran, who knows how high it could go. Everyone knows America MUST get off the oil. After September 11, 2001 I expected our President to call on Americans to GET OFF THE OIL. I was expecting a speech like the one JFK gave that motivated us to reach for the moon. As you know, this never happened. Eventually I realized that the only way this is going to happen is for us to do it ourselves. To that end I created this idea and have been trying to make it a reality..

    The EPA is offering a research grant opportunity that I believe is a perfect fit for this idea. I have sent an e-mail to a hand picked list of university professors who have experience with government research projects. Iā€™m looking to form a research team to apply for the EPA grant, conduct a social-economic experiment and surveys to determine to what extent the American public will support it, project the economic potential of WPH, and identify logistical, social and political obstacles as well as opportunities.

    All government grants are awarded based on merit of the proposed research. I believe WPH has merit but your help is needed to verify it. You can help by posting your feedback. Let the professors and the EPA know what you think about WPH. Do you think this idea is worth pursuing? We need to know if Americans will support a plan like this.

    Do you have any ideas to improve the plan?

    Share any and all of your thoughts.

    Tell your friends and family about this Blog post and ask them to post their thoughts on WPH

    http://wepayhalf.org

    Thank you

    Craig

    By Blogger Craig, at 16:02  

  • This comment has been removed by a blog administrator.

    By Blogger Richard Walling, at 21:53  

  • Who knows where to download XRumer 5.0 Palladium?
    Help, please. All recommend this program to effectively advertise on the Internet, this is the best program!

    By Anonymous Anonymous, at 22:45  

  • Even though it was Friday the 13th, it was a great day. My printer is working again and I have red in my color prints. I really appreciated the courteous response when I called this morning and Lloyd told me to ask for him when I came. I did, but he was out to lunch, literally. Anyway, I appreciated all the help you gave me and am glad I came back. I now have red in my color cartridge and it is nice to see colors that make sense. I went to the gym and was talking to someone there and told them about ECO Cartridge Store. She said she would keep it in mind if she had problems or needed ink. Thanks again for everything. You made my Friday the 13th special and this time the cartridge (color) was a perfect fit. Last time I had a bit of a problem getting it in. Everything was a snap this time.

    By Anonymous Anonymous, at 21:25  

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