Exxon to quit U.S. gas businessJune 13th, 2008 - 12:07 pm ICT by Amrit Rashmisrisethi
Exxon Mobil Corp is getting out of the retail gas business in the United States as the crude oil prices squeeze the margins. Those branded service stations may be the most public aspect of Exxon’s business.
The company will maintain the Exxon and Mobil brands, Exxon spokeswoman Prem Nair said.”We are in a very, very challenging market. Margins are reduced,” said Nair. “We feel the best way for us to grow and compete is through our distributor network.”
Exxon Mobil branded stations in the United States, Exxon, the world’s largest publicly-traded oil company, owns about 2,220. They include about 820 stations that it also operates. Exxon made more than $40 billion in 2007, most of which came from its oil and gas production around the world. Although the company does not release profit margin figures for its retail arm, Gheit estimated the stations’ margin was between 10 percent and 15 percent, about one-third its margin on crude oil production.