Exxon: Produce less, Profit More
Tiny URL: http://tinyurl.com/6x2eua
ExxonMobile - the world famous US-based integrated energy giant made $11.68 billion in 2nd quarter of 2008, a 14% increase compared to the same quarter in 2007. This is the highest profit ever made by any corporation in the world, Ever! However, I also noticed US oil demand dropped 3% in 2008’s first 6 months in their first significant 6-month decrease since 1991, the American Petroleum Institute reported on July 18. I am no economist but I have a very strange feeling about demand going down and profit going up.
It turns out, Exxon Mobil pumped the equivalent of 3.8 million barrels of oil a day, its lowest average since the third quarter of 2005. Crude production declined in every region where the company has wells, and gas output fell everywhere except Russia, Europe and Africa. So, in short, a reduction in output resulted in an increase in price offsetting whatever was the losses due to lower production and pushing the company profits to maximum ever.
Oh, I am not implying anything here. Just FYI.
