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LEE Raymond CEO of
EXXON MOBILE ON Charlie Rose
For those of you who missed it last night Lee Raymond CEO of Exxon Mobile
was on Charlie Rose on PBS last night. (i.e. May 6 2004)
And if there were any doubts about
the dire state of affairs for OIL he dispelled that very well.
the points he made:
1. There is no quick fix replacement for OIL, there
is no other energy source on the horizon that can replace the energy equivalent
of oil. None! If there was they would be in it. He made a very strong point of
how OIL energy has been the single element that has made possible the fantastic
economic growth of the 20th century and there is nothing out there that can
2. China and the U.S. are running out of oil, in his words
"No doubt about it"
3. No major oil company wants to operate in Iraq. In
his words: " the oil infrastructure in place in Iraq is the same infrastructure
built by the oil majors in the late 1960's and early 1970's before they were
kicked out by Saddam Hussein and the Iraqi oil industry nationalized, It has
never been updated. And the US government was nieve to believe that oil
production could be ramped up beyond its pre-war levels. The infrastructure is
not capable of increasing production" It will be years and billions of dollars
will need to be invested before production can be increased significantly. The
US government was also nieve to believe that revenues from Iraqi oil production
would be sufficient to rebuild Iraq and its oil infrastructure.
confirmed that the North Sea was facing severe production declines and the UK
was becoming a net oil importer.
5. Stated that is was not the OIL
companies objective to ensure they operated in strictly deomocratic countries
and the type of goverment was not their concern. Their aim was to go where the
6. Stated that Exxon Mobile was not consulted or part of Vice
President Cheney's Energy Task Force.
7. Stated that at the current time
there was an adequate supply of oil on the market, they could buy all they
wanted. What was driving up the price currently was speculators entering the
market due to political instability in some of the world's major oil producing
8. Stated the need to bring back Nuclear Energy for Electrical
Generation as it was the only viable alternative.
9. Solar energy is not
a viable replacement. He made the comment that it would take 84 square miles of
solar panels to replace the energy that a single gas station sells on a single
day. It would take solar panels covering all of New Jersey to replace the energy
dispensed by just 100 gas stations in a single day. Exxon has 3,000 gas stations
in the US and only has 13% of the market, and in his words "Do the math" noting
else is feasable to replace oil as an energy source!