
I recently read an article in which Jim Mulva, Chairman and CEO of ConocoPhillips, spoke to a group of around 300. The p.r. stunt took place in Bartlesville, OK where ConocoPhillips employs 2600 people. In his speech Jim mentioned several times how the public has a very bad opinion of the oil industry. Obviously his underlying message is that the public has a bad opinion of ConocoPhillips since they are one of the biggest players in the oil industry. Here is a little quote from that article:
“I hate to say it but the public perception as an industry is at the lowest level of all industries,” said Mulva.
Among public concerns, Mulva said the public perception of the oil industry is that it is lacking credibility, it is “gouging” at the pump and that it has a poor reputation.
The second statement brings me to the main point of this entry. Jim Mulva, the Chairman and CEO of ConocoPhillips, is concerned that the public thinks that the oil companies are price gouging. The last time I looked at the price of gas in Tulsa, which is pretty f-ing often, CononcoPhillips has the highest prices in town. It doesn't matter if it's a Phillips 66, a Fiesta Mart, or a store that is ran by Habib and his six kids. The price of ConocoPhillips gas is 10 cents per gallon higher than any other place in town.
In conclusion, Jim either made a mistake and forgot to adjust his inflated profit margins or he realizes that it doesn't matter how much gas costs. Fact is, we're going to buy it anyway. I'm guessing that he's learning from big brothers Exxon Mobile and BP who have figured out if they lower production in their refineries, they will make more money.
