Should you Boycott ExxonMobil?

ExxonMobile has long been a primary focus of environmentalists ire.  However, with gas prices creeping up by the day, and headlines hard to avoid, Exxon and their brethren are facing increasing scrutiny.  With their Gross Profit and Net Income lines increasing substantially each of the last several quarters, the high pump prices appear all the more outrageous.

What impact would or could a boycott of ExxonMobil have on the company itself, and the industry as a whole?

ExxonMobil boycotters have a variety of goals.  That is probably a big part of the problem that they face.  But could help in casting a wider net of those who may support their actions.  From what I have been able to gather, it appears that the would-be boycotters are hoping to do the following.

First, send a message to ExxonMobil, and "big oil" alike, that they need us to buy their gas.  We are their customers, not just the masses, but actual people who buy their product.  Just like Wal-Mart, Microsoft and Starbucks has customers, so do the oil companies.

Second, drive down demand for the pumps at ExxonMobil, hoping to drive down prices.  Forcing one company to reduce prices will cause a reduction in prices across the board.  Obviously, without a general reduction in fuel consumption, this will simply mean more demand at other stations.  Will these two effects cancel each other out?

Third, ExxonMobil is evil.  They hurt our air, oceans, animals and people.  Maybe, maybe not.  I really don't know about this one.

If you want to learn more you can visit TreeHugger, or what seems to be the definitive source, ExposeExxon.

It seems to me that the only thing that we can do to have a meaningful impact both on the macro situation as well as our own pocketbooks, is to reduce our own consumption.  I personally don't care where you buy your gas, just buy less of it.

In my post, What are you doing to save gas?  I noted an article by USA Today that quoted an energy expert as saying, "if everyone decided to drive 3% less the next 30 days, prices would crash."

That's reason enough for me.  I'm trying to carpool at least once a week, and I'm sticking to 60-65 on the freeways so diligently that I'm getting used to cars passing me.

Comments

[GayFinanceBlogger]

I prefer to boycott because Exxon's policy on Domestic Partner Benefits. When Exxon and Mobile were seperate, Mobile offered their employees Domestic Partnership Benefits (Health Care, etc.). Post merger, Exxon squashed those long standing benefits.

All oil companies are making big money. ExxonMobile just happens to be the largest and making the most.

[Flexo]

While a personal boycott may make you feel better termporarily, it won't send any messages. Only a large-scale movement would. The "don't buy gas for a day to cripple the oil industry" email that goes around every once in a while -- even it a lot of people heeded the message -- would have a miniscule effect on profits. The only way companies like ExxonMobil will be forced to change their business model (in a way that's more than just lip service) is if automakers stop making engines that require gasoline.

[mapgirl]

Oh the various rants I have posted over the years in response to this. The bottom line? These boycotts only shift the demand to other days of the week.

When you boycott the pump, you boycott the franchise-owner or dealer. Unless the pump is owned by the company itself, most likely you're hurting some guy who is also getting squeezed with heavy price competition.

Consumers of gas are extremely price sensitive for this commodity and they do shop around. For dealers to remain competitive, gas is often the loss-leader that brings you into the store to buy soda, coffee, lottery, snacks, etc.

Just drive less all the time. That's the only way.

[Dus10]

I do not know why these boycotters think they are going to make a difference. Even though the stations may say ExxonMobile on them, and some of them don't, they are not owned by ExxonMobile. Boycotting will just turn the screws on the little guy who runs the pumps... ExxonMobile will still get their money from him...

Further, if it did reduce the demand on ExxonMobile, it would increase the demand on the other stations... ExxonMobile would just sell their fuel to the other needy stations.

The only way to spend less on fuel is to use less. It is pretty simple. Just use less fuel, and you will have to buy less of it.

[Brandon]

I love Exxon Gasoline, for every gallon you do not buy, I will buy two...

Exxon only made 9% on its money last year...That is not that much. If you spent $10 one day and got a 9% return you would end up with $10.90. Should that be illegal? I think not, especailly when the state government gets 8.25% for sales tax, the fed gets over 30% for income tax, and 30% of the price of gas is tax. Refiners make on average $.10 per gallon. Exxon holds less than 1% of the worlds proven reserves...do you really think they carry as much clout as OPEC which has 4000% as much oil as Exxon? Global warming is a joke. I have spoken with geologists with PhD's from University of Texas (a liberal school) on the issue, there was a time in the Permian age when 95% of marine and 70% of animal life on earth died due to extreme heat, and most of the world was desert... That was 250 million years before cars were around. You cannot look at the last 200 years and notice a degree of difference and immediately assume we will all die and the earth will start boiling, it was initially a lava covered planet anyway. Weather recording instruments were different, and not near as accurate in the late 1700’s, and the Earth is 4,500,000,000 years old…200 years/4,500,000,000 years = 0.0000000444%. You cannot look at such a small fraction of earth’s lifetime and get a clear picture. I know that environmentalists will bring up these sacred ice cores that go back 15,000 years. Once again…15,000/4,500,000,000 = 0.00000333 %. There was an Ice Age 10,000 years ago, and the same activists talking about global warming were talking about global cooling in the 1970s. Oh well its hard to win with jerks like Al Gore making movies. Give your response on this…or add something or whatever…I would like to talk to some liberals/environmentalists on this issue. See, we’re not all closed minded right winger numbskulls…email me at stockguy0606@yahoo.com if you agree or not, and if you know an Exxon hating liberal send this to them. Thanks.

[Jim France]

We should all boycott ExxonMobil because ExxonMobil has given over $19 million over the years to the Competitive Enterprise Institute and others who are "producing very questionable data" on climate change. Our President is in cahoots with the oil industry and recently issued a "presidential signing statement" directing the executive branch not to enforce a law requiring memorandum from lobbyists to the administration to be forwarded to Congress. This is because ExxonMobil has been writing policy for the Bush Administration. Yes, we should BOYCOTT EXXONMOBIL.