Lee Raymond: There is adequate supply everywhere in the world"

Lee Raymond, CEO of ExxonMobil announced the current high price of gasoline at the pump was not caused by a problem with crude oil supply, but by factors such as political uncertainty in the Middle East.
"There is adequate supply everywhere in the world," Raymond told after the company's annual shareholders meeting. He also dismissed notions OPEC and its kingpin, Saudi Arabia, could not come up with policies to tackle the high cost of crude.
"I think you need to be a little cautious if people are concluding that the issue is out of OPEC's and Saudi Arabia's hands," he said. "I think it is a harsh conclusion not supported by the data."

Oil prices have so far failed to respond to Saudi Arabia's promise to raise output sharply in June and pump at full capacity if necessary. Saudi Arabia, the world's top exporter, pledged to unilaterally raise production in June by 10 % to 9.1 mm bpd. Saudi Arabia also said it planned to propose at the June 3 cartel meeting that extra production above formaloutput limits be legitimised by lifting the group's quotas by 2.0 mm to 2.5 mm bpd.
Raymond said he wanted to remind consumers the two biggest factors in the price of gasoline at the pump were crude oil prices and taxes. He estimated the company's profit was around five cents a gallon.

Raymond said the company has not changed its plans for upstream production, despite the high price of crude, saying ExxonMobil plans exploration and production activities for the long-term, without regard to recent fluctuations in crude prices. In response to a question, he said he did not discuss a return of ExxonMobil to the Saudi upstream market during a meeting with Saudi Oil Minister Ali al-Naimi, when the two met at recent energy forum in Amsterdam.
ExxonMobil abandoned plans in June 2003 to take part in natural gas exploration and production projects licensed by Saudi Arabia. There were about two dozens protesters outside of the annual meeting, many of whom asked the company to address problems they saw relating to climate change and asking ExxonMobil to adopt a policy to prevent discrimination based on sexual orientation.

Shareholder proposals for the company to issue a statement saying it will not discriminate on the basis sexual orientation and another asking the company to provide a report on climate change were voted down at the meeting. Raymond also took a step back to appraise the merger with Mobil five year ago, which analysts have said is one of the few successful mega-mergers. He said that, since the merger, the combined company has generated over $ 120 bn in cash and has posted earnings of $ 74 bn.
"The facts speak for themselves on what the merger has meant to our shareholders," Raymond added.