Call 4 Action: Exxon-Mobil Is Oil Company PowerhousePOSTED: 4:41 pm EST February 1,
2007 The following is a transcript of a report by Call 4 Action reporter Aaron Saykin that first aired Feb. 1, 2007, on WTAE Channel 4 Action News at 5 p.m. The oil giant Exxon-Mobile raked in $39.5 billion in 2006, making it the largest single-year profit in U.S. history.But it comes at a time in history when Americans are being asked to pay more at the pump, so why the divide, and why aren't gas prices cheaper?Exactly five years ago, drivers were paying $1.30 per gallon of gasoline nationwide. Now, that number is around $2.20, if not higher in some places.And as we began paying more, the big oil companies like Exxon-Mobil began making more.To the average driver struggling to fill the tank, it doesn't sit well."I think it's ridiculous," said North Versailles resident Dave Kaminsky. "The prices keep going up. They're complaining about not enough fuel. We keep paying more, keep paying more."The world's largest publicly traded oil company earned nearly $40 billion last year, breaking a record set in 2005 by Exxon-Mobil.Political leaders were quick to react."The first opportunity I have is the U.S. Senate to vote against tax breaks and tax cuts for oil companies," said Sen. Bob Casey. "I'm going to vote against it."Exxon-Mobil makes much of its profit from refining oil into gasoline and then distributing it.But one of the country's leading energy experts, Kent Moors, of Duquesne University, said he believes the oil industry, specifically Exxon-Mobil, has such little competition that its been able to keep prices at the pump higher than necessary."I'm in favor of a free market," said Moors. "I think, by and large, the free market is a tremendous advantage, but a free market anticipates competition. And it anticipates a level playing field. That's not the case with the very large oil companies."Exxon-Mobil said the record profit was a result of the company's ability to bring more oil and natural gas to a market where demand is high. Related Links: More County NewsGet RSS | E-Mail Alerts Copyright 2007 by ThePittsburghChannel. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |
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