Bush defends Exxon's big profits

Bush defends Exxon's big profits

February 2, 2006 BY TERENCE HUNT


NASHVILLE, Tenn. -- President Bush defended the huge profits of Exxon Mobil Corp. Wednesday, saying they are simply the result of the marketplace and that consumers should not expect price breaks.

In an interview, 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.''

''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, he said.

Exxon has obligations too

In his address Tuesday night, Bush had set a goal of reducing the nation's Mideast oil imports by 75 percent by 2025.

Early this week, Exxon reported record profits of $36.13 billion for the year. 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.''

Copyright by the AP