Exxon Mobil update

Interesting take on offshore drilling and Exxon over on Salon.com. It tries to explain why Exxon, with record breaking profits, is desperate for offshore drilling. It seems their ability to pump oil has been decreasing all around the globe (ie Congress is not to blame - it's a worldwide problem).

Offshore drilling will have only a trivial influence on the price of gas and will not decrease U.S. dependence on foreign oil one whit. Only a massive reduction in demand and the development of alternative sources of energy will achieve such a promised land. But even just the prospects of increased production could do wonders for the share price of Exxon, should the oil company get some new leases.

Exxon's executives must currently be tearing their hair out at their inability to increase production when the price of oil is at an all-time high. Because, as the events of the past few weeks have demonstrated, when the price of oil gets high enough, demand destruction follows, and the price inevitably drops. And suddenly, $11 billion in quarterly profits is ancient history.

From that point on the post becomes an ugly rant against the energy policy of the Bush admin and I certainly wouldn't want to be a party to that.

it's too easy, for one thing.

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