Thursday June 22, 2006

US oil defends record profits

news.yahoo.com :

Top executives at three big U.S. oil companies defended record profits as necessary to finance future investment, and one cautioned that summer gasoline pump prices could go higher with hurricane season underway. Major oil companies, including Exxon Mobil, Chevron, ConocoPhillips, collectively earned well over $100 billion in profits last year, sparking outrage among consumers and some lawmakers. Prices at the pump, already up due to tensions in the Middle East, soared last year after Hurricanes Katrina and Rita disrupted U.S. Gulf coast oil and gas production. The industry is gearing up for another predicted busy Atlantic hurricane season this year after a record 28 tropical storms in 2005.

Shell Oil Co. President John Hofmeister said more attention was needed to developing additional fuel sources. "We're investing to grow, but it takes time and it takes investment and it takes access to places to invest to produce more oil and gas," he said.

Chevron's O'Reilly defended the industry's profits as in the middle range of other industries. "I think this there's a perception that this is an extremely profitable business long term, and over the long-term cycle it has not been profitable," he said. "The return on capital and return on sales were very modest."

See also :

1. Exxon Mobil posts record profit of $10.7 billion
2. The Size and Scope of Big Oil
3. Record oil company profits (Exxon Mobil, Shell, BP)
4. Are Big Oil's tanks running dry?

(2006-06-22 13:22:12 SGT) [Energy] Permalink

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