NASHVILLE, Tenn. -- President Bush defended Exxon Mobil Corp.'s profits Wednesday, saying they are simply the result of the marketplace and that consumers facing higher energy costs should not expect price breaks.
In an interview with the Associated Press, Bush also addressed oil's future, offering a more ambitious hope than in his State of the Union speech for cutting imports from the volatile Mideast. Bush, a former Texas oilman, said of oil costs, "I think that basically the price is determined by the marketplace, and that's the way it should be."[image-nocss]
He added, "I believe in a relatively quick period of time, within my lifetime, we'll be able to reduce if not end dependence on Middle Eastern oil by this new technology" of converting corn, wood, grasses and other products into ethanol.
In his address Tuesday night, Bush had set a goal of reducing the nation's Mideast oil imports by 75% by 2025.
Early this week, as reported in CSP Daily News, Exxon reported record profits of $10.71 billion for the fourth quarter and $36.13 billion for the yearthe largest of any U.S. company. While some politicians raised furious objections, Bush had a different reaction. "There is a marketplace in American society," he said.
"There's also a responsibility for energy companies to continue to invest and improve the ways that the American people can get energy," he said. "I would very much hope that Exxon would participate in the development of a pipeline out of Alaska, for example, in order to make sure there's more natural gas available for families and small business owners so the economy will grow."
Bush said his goal is to diversify away from "a hydrocarbon society. I meant what I said last night, that America's addiction to oil is bad for this country. In order to remain competitive, we've got to use technology to diversify away from dependence upon oil. I am told we are close to significant breakthroughs when it comes to the production of ethanol...and that within six years the development of technology will be able to produce energy on a competitive basis.
Bush dismissed the idea of increasing fuel efficiency standards for cars, trucks and SUVs as a way of curbing foreign oil dependence. "My plan is to diversify away from oil.... You're asking questions about how you deal with cars running on gasoline made from oil, I'm telling you let's get some cars running on fuel other than oil."
The White House has posted State of the Union: The Advanced Energy Initiative on its website. Click here to view.
Meanwhile, Bob Slaughter, president of the National Petrochemical & Refiners Association (NPRA), issued the following statement on President Bush's State of the Union message on Tuesday:
The President's State of the Union message responded to Americans' concerns about the nation's energy future in an appropriate fashion. NPRA also believes that technological advances will point the way to our nation's energy future. It is important, however, that mandates, price controls and other command-and-control or punitive measures not be adopted as energy policy, and we do not believe that the president indicated any support for these options. Unfortunately, some members of Congress are advocating imposition of a windfall profits tax, retroactive policy changes and other punitive measures, despite the overwhelming evidence that these policies would do great harm to the nation's energy supply and security as we make the transition to a technology-driven future.
NPRA believes that, while pursuing research and technological advances, the nation must not lose sight of the fact that oil and natural gas will continue to serve as foundation fuels for the American economy not only today, but for the foreseeable future. It follows that U.S. energy policy must continue to target its efforts on increasing domestic production of petroleum products and natural gas supplies, and the efficient usage of these fuels while maintaining environmental progress.
NPRA looks forward to working with the administration and both parties in Congress to design and implement policies that reflect real world conditions and promote a secure energy future for our nation.
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