Quote:
Originally posted by Mike Feinstein
My 6 year old could be the CEO of Exxon (I wish) and the company would still make billions. It doesn't take special talent to make a profit in an industry with a captive market and complete price control. Put Exxon's CEO in charge of a company where the public actually has a choice, and it's a whole new ball game.
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Not so. Exxon is not a monopoly, say oh, like the cable companies, power company and the phone company. With those, you've got no choice. If you live in their area you buy their service.
Exxon has competition from other oil companies. Don't like Exxon's policies in Alaska or elsewhere? You can buy your gas someplace else. For example, I will never buy gas at Citgo....it's an outgrowth of the Venezuelan government.
Point is, even with a commodity like oil, it still takes a fair amount of acumen to market your product and avoid political risk (Venezuela, Nigeria, Ecuador, Bolivia which recently nationalized) natural disasters (gulf of Mexico) and environmental boycott.(Valdez).
Quite frankly, even if the oil companies were helmed by your 6-year old, I wouldn't have a problem with them making money. It's the capitalist way. I am also confident that if oil gets TOO expensive, substitutes or new sources will be developed. That has been the way with every commodity known to man...ever!
Spices were in short supply, so Vasco De Gama developed a new trade route to Goa.
Whales were in short supply, so we figured out how to crack mineral oil.
Copper cable was getting expensive so someone came up with fiber optics.
Couldn't get to the rubber trees...so somebody invented Butyl Rubber.
The list goes on....