NBC went on the attack against "Big Oil" again May 15, alleging oil companies are to blame for high prices and don't invest enough in exploration, all while ignoring the fact that crude oil accounts for most of the price of gasoline.
"Gas prices hit yet another record high this morning and as you suffer, the oil giants are making billions," co-host Meredith Vieira teased at the top of the "Today" show. Well, with an introduction like that, viewers should expect a fair interview, right?
"Most analysts say prices at the pump will get even worse during the summer driving season," co-host Matt Lauer said, "but the oil companies are posting huge profits. ExxonMobil, the biggest U.S. oil and gas company, made a $10.9-billion profit in the first quarter of this year."
Lauer demanded that ExxonMobil CEO Rex Tillerson explain "how [he] can justify the record profits [they're] making when people can't afford to put gas in their cars to go to work."
Tillerson gave Lauer a little lesson in economics, explaining that oil company profits are so large not because of high profit margins, but because of high volume. For every $1 in revenue ($400 billion in 2007), Exxon makes a profit of 10 cents ($40 billion in 2007), placing it "about in the middle of most Fortune 500 companies, so we're not at the top in terms of profit per revenue; we're not at the bottom."
Tillerson also explained that Exxon's more than $5-billion annual investment in exploration would be bigger if the company has more access to exploration opportunities. "We have very, very robust exploration programs that span the globe. We would do more if we could gain access to more areas to apply our technology, let our geoscientists go to work," he said. "Certainly we have the financial capacity to do more. Much of what's driving the pace of what we're doing is access to those opportunities."
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Tillerson did a good job of
May 15, 2008 - 11:28 ET by taterTillerson did a good job of holding his own against Matty...I only wished he would have pointed out how much the GOVERNMENT profits from gasoline. The same government that is trying it's darndest to keep oil companies from drilling in ANWR and other areas.
"They need to have a course in college called common sense and everyone should take it. Problem is there isn't too many people that could pass or teach it." -my grandfather
Exploration
May 15, 2008 - 11:35 ET by saintknowitallOil exploration increases when oil prices increase. Good old supply and demand.
Except when forbidden by
May 15, 2008 - 11:40 ET by mattmExcept when forbidden by the government.
In a free market, investment would flood into the exploration and refining industries and prices would stabilize at a consumer-friendly level.
It's "Big Government" which is protecting "Big Oil's" monopoly.
Go Exxon CEO
May 15, 2008 - 11:41 ET by Daniel BakerOil is a natural resource though why not let the government gain all the profits from it.
My Russian Friend said he liked it when putin took over the oil from the rich guys living in other lands that bought it for pennies on the dollar
you're joking, right?
May 15, 2008 - 11:59 ET by wizardjrEvery government owned/operated oil field is a shambles. Production is below standard, quality is random, updates and upgrades are rare and problematic, and most of them are environmental and safety disaster areas.
As to your Russian friend, it was the rich guys living in other lands that made a market for the Russian oil. The only ones buying it for pennies were the Aparatchiks like Putin.
If government ownership was such a great idea then Mexico would be an exemplar. In a way they are. The profits are siphoned off by the kleptocracy and the people get zero benefit while overpaid bureaucrats pad the payroll and take kickbacks (la Mordida). Wonderful. Just what we need. Our current oil/energy problems stem directly from government interferrence in the market place. Just what we need, more.
Thanks for the reply
May 15, 2008 - 12:31 ET by Daniel BakerRussia was a special case where the privatization did have some political corruption to it. So those business men had it coming.
The busnessmen had it coming?
May 15, 2008 - 14:08 ET by CobraMan"So those business men had it coming"
The businessmen had it coming? How do you figure that? Perhaps you've forgotten that it was the Soviets that created and managed that "business" for several decades before it was commercialized. Any corruption and mismanagement that exists was already taking place LONG before it was taken over by private business.
Corruption and mismanagement was, and, in a lot if instances, still is endemic to the Russian businesses and government. I don't think the situation has improved much since the government has seized control of the industry again, do you?
Drilling in Anwar
May 15, 2008 - 15:50 ET by merlin61When are the people going to go after Congress
to vote for drilling in Anwar, when is Congress
going to approve of drilling in North Dakota?
When is Congress going to approve anything
that makes our country better and less reliant
on foreign oil? When are they going to
approve more refineries in our country?
No. Instead of the above, we are going to
protect polar bears (don't know how), because
artic ice melting. That's gonna do our economy
some good isn't it!!!
Governments don't make "profits."
May 15, 2008 - 14:17 ET by CobraMan"Oil is a natural resource though why not let the government gain all the profits from it."
Governments don't make "profits," not in a democratic society that adopts capitalism anyways. The government is the LAST entity that should "profit" from “natural resources” as that gives ALL the power (social, economic, and material allocation and control) into a very few hands, wouldn't you agree? That’s a PERFECT recipe for corruption.
I don't know about you, but I happen to like the idea of power being spread across many hands so that corruption is minimized as much as possible It's hard for someone to play a corrupt hand when they don't hold many cards, right?
re "democratic society"
May 16, 2008 - 03:18 ET by fastfoodCobraman, we are a Republic not a Democracy per Article IV, Section 4 of the US Constitution.
Wow, a pro-communist likes
May 15, 2008 - 14:44 ET by ckc1227Wow, a pro-communist likes the communist actions of a communist leader, lol. SHOCKING!
Clueless
May 15, 2008 - 11:48 ET by bias-fighterMatt's questions reveal how clueless he truly is. He'd never intend to do so, but the questions he asked only helped demonstrate how terrible Dems' policies are.
As proven by how much
May 15, 2008 - 11:57 ET by taterAs proven by how much journalists tout global warming yet have no clue about how climate works...most journalists have no clue how a business runs either.
"They need to have a course in college called common sense and everyone should take it. Problem is there isn't too many people that could pass or teach it." -my grandfather
Clearly, we need legislation
May 15, 2008 - 11:51 ET by TEClearly, we need legislation that will limit the amount of money paid to leftist political activists like Lauer, Viera, Brian Williams, Katie Couric, Charles Gibson, .... I'm certain that said activists will have no objection to a legal limit on their salaries.
We Cannot Replace Oil
May 15, 2008 - 11:51 ET by JDWOil companies have spent some 20yrs and $100 billion on new sources of energy. What do they have to show for it?
If big oil had started drilling in ANWR before Clinton blocked access, how much in profits would these companies have lost?
JDW
If you mention ANWR it means you don't care about the environment but when congress says ANWR it means you don't care about the gasoline prices
Why didn't Tillerson press Today
May 15, 2008 - 12:20 ET by Teddyto ‘justify’ their regular "Where In World Is Matt Lauer?" segment on the show?
Never mind the carbon footprint, waste and fuel cost.
More importantly, Who GIVES a F%ck and Who NEEDS it?
Ever heard of the Internet, Travel Channel, dinosaur media?
We NEED oil, Matt. Don't need you though. And your ratings reflect that.
Florida
May 15, 2008 - 12:29 ET by okiehawk44I live here in Florida and the belief of most residents here (that includes former Gov. Jeb Bush and current Gov. Charlie Crist) is that off-shore drilling is anathema to the state and its lifeblood tourism. Their thinking is still in the '60s even though you can't even see a drilling rig more than 35 miles off the coast or that none of the more than 1000 wells leaked a drop of oil as a result of Katrina etc. These are the so-called educated ones -- you should talk to the others -- WOW! You'd think we were still whaling to get the oil for our lamps. Bush and Crist (he's also a manmade global warming nut) are just typical politicians and the Cubans and Chinese will drill for and pump our oil for us and then sell it back to us for $400/barrel -- Christ doesn't even know how modern drilling works or how well-heads are controlled etc. Most Americans have never seen an oil drilling unit, a pump-jack, a cracking tower etc. They will believe any slop put out by others who don't have a clue either.
"I live here in Florida and
May 15, 2008 - 14:37 ET by ckc1227"I live here in Florida and the belief of most residents here (that
includes former Gov. Jeb Bush and current Gov. Charlie Crist) is that
off-shore drilling is anathema to the state and its lifeblood tourism"
Wait until they see how much an anathema to tourism $7-$10 a gallon of gas and unaffordable air travel is....
It's amazing how Matt Lauer
May 15, 2008 - 12:29 ET by fitzfongIt's amazing how Matt Lauer can find the time to take such an intellectual spanking from Rex Tillerson...after all, he has Meredith's coffee to sweeten and cleaning to pick up. Sad part is that Today's audience is so filled with the Peg Bundys of the world that they actually believe Lauer showed Tillerson who's boss.
I always love to see a
May 15, 2008 - 13:34 ET by deerjerkydaveI always love to see a liberal journalist get slapped down with reality. I think Lauer's head was spinning with the facts that Tillerson was laying out. Lauer never seems to internalize these facts because I guarantee you that it won't be long before we hear Lauer repeating the mantra of how big oil is to blame for the cost of gasoline and how their profits are evil.
When will we hear a journalist scrutinize the anti-energy records of Clinton, McCain, Obama, Pelosi, Reid, and most other Washington politicians and blame them for the high cost of oil and the profits they rake in from the high cost of gas and the taxes on big oil's profits?
Gas Prices
May 15, 2008 - 12:49 ET by billbTillerson should have asked Matt how much NBC paid for gas to blow up the pickup trucks!
Pull Heads Out!
May 15, 2008 - 13:10 ET by MeanderingI wish people would pull their heads out of their rears and see that we need to expand where we drill. But people will believe whatever Matt Lauer tells them. We are surrounded by idiots!
OUTSTANDING!
May 15, 2008 - 13:56 ET by timzankTillerson did a superb job of simply laying out the facts. It is a shame Matty won't remember a thing he said though, as it was all common sense. That doesn't fit the liberal sky is falling mantra.
PUTZ.....
OUTSTANDING!
May 15, 2008 - 13:56 ET by timzankTillerson did a superb job of simply laying out the facts. It is a shame Matty won't remember a thing he said though, as it was all common sense. That doesn't fit the liberal sky is falling mantra.
PUTZ.....
Kick his tail,
May 15, 2008 - 15:22 ET by SchnikeysKick his tail, Rex.
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Grizzly Bear '08
It's got to the point that
May 15, 2008 - 15:28 ET by Gary P JacksonIt's got to the point that I have a problem reading, or commenting, on anything to do with "climate change" or energy.
This fantasy keeps popping into my head, where we ship all of the liberals to Gitmo, and set the terrorists free, as they are not as dangerous as liberals.
Of course, our weak kneed party doesn't have enough cojones to take the liberals on with facts. They are too busy trying to find a "Republican way" to deal with a fictional problem.
We need term limits, and we need them NOW!