Gas Prices Exxon Mobil Exxon

Gas Prices

Exxon Mobil

Exxon Mobil is the largest oil company in the world and has received a great deal of criticism over the profits that they have realized in the wake of extremely high gas prices. According to the Washington Post. Exxon Mobil and other gas companies have insisted that they are not trying to take advantage of customers. They argue that gas prices are determined by global demand and that any disruption in supply (such as those that occurred after Hurricane Katrina) can increase the price of gas. The company had a net profit of $8.4bn between January and March of 2006. Compare to the net profit of $7.86bn a year ago. As far as the management style of the company is concerned the merger of Exxon and Mobil have allowed the company to realize a great deal of profit as a result of high gas prices. Despite what many believe these companies do not have much control over the price that consumers pay for gas, because the price is determined by conditions all over the world. In addition, there is a gas tax in many states; this is part of the reason why gas prices are different from state to state.

As it relates to economic issues and societies dependence on gas, the company claims that it is dedicated to finding a way to reduce the world dependence on oil. As part of the overall strategy of the company it encourages energy efficiency and biodiversity conservation (Corporate Citizenship). In addition the company has various initiatives that support economic empowerment through education.

BP (Amoco)

BP is the second largest oil company in the world. Like Exxon Mobile, BP (Amoco) has also seen a rise in profits as a result of high gas prices. At the same time this increase in profits was somewhat offset by the damage to offshore refineries that occurred because of Hurricane Katrina. According to Reuters "The world's second-largest listed oil firm by market capitalization said in a statement that the replacement cost result, which excludes changes in inventory values, fell 4% to $5.265 billion (2.9 billion pounds) on Tuesday. Excluding a $17 million charge for non-operating items, BP's underlying or "clean" net profit was $5.282 billion, compared with an average forecast of $5.21 billion in a Reuters poll of eight analysts and $4.96 billion in the same period of 2005 (BP profits rise on high oil)." As far as economic conditions are concerned, as part of the company's strategy it is committed to aiding people with the social and economic problems that they face (Environment and Society). This is known as the community investment strategy. This strategy encompasses human rights, education, and enterprise development (Environment and Society).

BP's management is also concerned with decreasing dependence on oil and has created various initiatives to create new sources of energy.

Shell