Editorial comment by Thomas
Detwyler
Signs from the Washington Post, December 2,
1998... (http://washingtonpost.com/wp-srv/business/longterm/mobilexxon/mobilexxon.htm):
"Executives maintained that the huge size of their venture would ensure success in an era of low oil prices and produce savings that would benefit employees and consumers." --Let's see; If we could drive oil prices up, we wouldn't have to take such "ventures" to "ensure success"...
"The new company, to be named Exxon Mobil Corp., will save $2.8 billion in expenses over the next three years, shed at least 9,000 jobs..." --Aha, so these will be the "benefits" for employees and consumers...
"Mobil is the nation's second-largest oil company, exceeded only by Exxon, but Mobil executives found the competitive environment increasingly difficult." --So let's become non-competitive, monopolistic...
"Both companies were facing drops in profits as they were confronted with a steep plunge in the price of oil." --Read on, to see how far profits have plunged: "...even after steep job cuts and other cost-cutting measures, Exxon eked out only $8.46 billion in profit last year on revenue of $137.24 billion..."
"...in addition to high costs and slipping oil prices, new competition has radically changed the industry...making the merger critical. International oil companies...have moved into the refining end. And competition also has mushroomed on the retail end." --Hey, what about Mobil's endless advertorial paeans to free-market capitalism??
"'The driving force behind this merger is long-term opportunities,' said Rod Peacock, a J.P. Morgan investment banker who headed the team advising Exxon." --Oh, so it's not really the short-term exigencies that are driving this deal?!
"President Clinton generally looks favorably on mergers. 'He believes that mergers that make us more globally competitive have a positive role to play as long as there is protection for consumers and it promotes economic growth,' Lockhart said." --Presidential lip service for consumers, fealty for corporate capital...
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Last updated 4 January 2001
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