ExxonMobil disclosed $10 billion dollars in profit for the third quarter due to the recent rise in prices after hurricanes in the gulf. When asked whether they would be directing any of those profits toward the development of alternative energy sources such as hydrogen, Exxon said it had no plans to do so:
"We're an oil and gas company. In times past, when we tried to get into other businesses, we didn't do it well. We'd rather re-invest in what we know," says Exxon spokesman Dave Gardner.
Is this is a smart call on their part? As they say, doing what they do best returns more profit to the shareholders and they have done poorly in other areas. It's easy for individuals outside the company to tell them how they should be spending their money, but it's the company's money. Most of the other major oil producers are targeting money at increased exploration for petroleum reserves and development of alternative energy resources such as hydrogen, solar power and wind energy. If those producers do well, they win, ExxonMobil loses. If not, ExxonMobil is the smart one proving business is all about decision making and risk taking. Who's right? Too soon to tell.
We addressed this very issue before in Oil Companies and Hydrogen. Oil companies are very well situated to deliver whatever new sources of energy we eventually adopt and those that don't run the risk of being passed by those that do. They run the risk that companies in other industries will also gain an edge where they could have played a part, but the future is not set in stone and different companies will choose different courses. One thing is sure, the PR for this decision will probably be harsh.
A very good related article here.
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Exxon said it will not invest in somthing it doesn’t know. Are they kidding!!! I would like to find out what fuelcell companies they have invested in. I belive the major oil” energy” companies have invested in fuelcell companies just to stifle the progress. It is hard to imagine they have not!!!