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Exxon: Bush's energy goal 'not feasible' February 8, 2006: 8:26 AM EST HOUSTON (Reuters) - The United States will rely on foreign imports of oil for the foreseeable future to feed its energy needs and should stop trying to become energy independent, a top Exxon Mobil Corp. executive said Tuesday. "Realistically, it is simply not feasible in any time period relevant to our discussion today," Exxon Mobil Senior Vice President Stuart McGill said, referring to what he called the "misperception" that the United States can achieve energy independence. The comments, in a speech at an energy conference in Houston, come a few days after President Bush told Congress that America is addicted to oil and needs to slash its Middle East crude purchases 75 percent by 2025 by building vehicles that run on alternative fuels. Many in the United States believe America should wean itself off oil imports from the Middle East, fearing it makes the country dangerously dependent on an unstable region. The world's largest publicly traded oil company, however, says hoping to end foreign oil imports is not only a bad idea, but also impossible. "Americans depend upon imports to fill the gap," McGill said. "No combination of conservation measures, alternative energy sources and technological advances could realistically and economically provide a way to completely replace those imports in the short or medium term." Instead of trying to achieve energy independence, importing nations like the U.S. should be promoting energy interdependence, McGill said. "Because
we are all contributing to and drawing from the same pool of oil, all
nations -- exporting and importing -- are inextricably bound to one
another in the energy marketplace," he said. Exxon wasn't the only one attacking U.S. energy policy at the conference. A top executive at Chevron Corp. (Research), the No. 2 U.S. oil company, said America was sending confusing signals by encouraging production growth with a new energy law, but derailing investment by considering special taxes on oil company profits. "In terms of energy policy, the U.S. seems to be sending mixed messages," George Kirkland, executive vice president at Chevron, told the conference. The top oil companies have posted record profits as consumers face higher gasoline and home heating bills, renewing Congress' interest in imposing punitive tax measures on those profits. At the conference, Exxon (Research) again defended its more than $36 billion in annual profit last year as far from excessive, pointing out that 2 to 3 million American shareholders enjoyed part of that windfall. It also said its profit margins were in step with the national average for major U.S. industries and that fuel prices are lower than the price of other liquids such as bottled water. "The disconnect arises from the difference in the volumes and costs involved in the petroleum business," McGill said. "Producing and delivering energy is an expensive enterprise." http://money.cnn.com/2006/02/08/news/companies/exxon_energy.reut/index.htm Copyright 2006 Reuters
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