Gas price rise: Middle East or Exxon?
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While the popular media blames the conflict in the Middle East for the escalating gas prices, no attempts have been made to correlate the soaring profits of Exxon Mobil and the other Big Oil to the recent price hikes.
Exxon squarely blames Organization of Petroleum Exporting Countries (OPEC) for not capping the crude oil price. A barrel of crude oil sells for about $74 as compared to $42 from 2004. If that was the reason for $3/gallon at the gas pump, how then can you explain Exxon Mobil’s $340 billion in revenue?
Obviously, no company can make exorbitant profits unless its selling price is disproportional to the cost of production. Now that might explain how Exxon bumped the mammoth Wal-Mart from the No.1 position on Fortune 500 list, with its profits topping at a whopping $36.1 billion, the most by any U.S. company in history!
Alternatively the media blames global demand for the hike in gas prices. Currently the most populous nations, China and India consume less than 10% of the world energy. The marginal increase in the global demand cannot explain the giant leap of Exxon as the numero uno.
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Tags: Media, China, Middle East, Conspiracy, War, Oil, India, US, corporation, Sustainability, Energy, Economics, Business, Exxon
Even better would be: 
1. Keith Standridge | July 4, 2008 #
Truly oil company profits are exceptionally high. If the U. S. can find a way to reduce it’s demand prices must fall. If we all drove with an I toward fuel economy, it’s called hypermiling, the reduction might just be enough to help ease prices.