An interview with Exxon's Chairman/CEO

[Dover]

Jan. 24, 2004, 10:02PM

Exxon chairman looks to future after time of great change

By NELSON ANTOSH
Copyright 2004 Houston Chronicle

Lee Raymond, the chairman of Exxon since 1993 and chairman and CEO of Exxon Mobil after the two firms merged in 1999, has guided the world's largest oil company through a period of rapid change.

As the second-largest employer in the Houston area -- 17,000 of the company's 90,000 employees work here -- the company casts a long shadow on the Houston economy, as well as national and international energy supplies.

Last year, the corporation's board agreed to extend Raymond's retirement for an indefinite period of time because the amount of change during the prior three years made it difficult to set up the next generation of management.

Raymond sat down with the Chronicle last week for a rare interview to discuss the state of the company and issues facing the energy industry:



Question. Is there a shortage of natural gas?

I don't know what shortage means. Obviously the supply is going to meet demand. In hindsight, that's always the case.


Answer. What we are going through right now is the realization on the part of a lot of users that low-priced gas is a thing of the past. This means a recalibration of how users look at it. Unfortunately, there are some who are going to find that higher-priced gas will make it difficult for them to compete.

So it's not only a supply question, it is also a demand question. There is a lot of readjustment going on, on both sides of the equation.


Q. How important is liquefied natural gas (LNG) to a secure energy supply in the United States?


A. Over a long period of time, it is very, very important, although we could get into debate about the near term.

We're on the cusp of being a major gas importer.

That leads to a lot of volatility because small things are going to be magnified when you are right on the margin. This will be the case until it becomes clear there is a significant and continuous level of LNG imports, which will stabilize the market.

The point is, over the longer haul, the importation of gas into North America is absolutely critical. I can go back 30 or 40 years ago, when I worked in this same building , when I remember we were just starting to ramp up crude imports. Now we are importing 8 million barrels a day.

...snip...

Q. It was widely reported that you were negotiating to buy a stake in Yukos, the big Russian oil company, before its top executive was arrested. Given the turmoil there, are you still interested?


A. I think we ought to move on to the next question.




.....cont'd

http://www.chron.com/cs/CDA/ssistory.mpl/business/2369842

[AVID]

1. hmmmmmm

yes