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10/26/2005:

"Oil Doesn't Want Focus on Big Profit"

Gigantic oil companies generally do not enjoy the best PR.

Pick your poison: Oil companies have caused tanker spills, proposed drilling into the Arctic wildlife ranges, crafted ties to shady nations and meddled in the affairs of others, and produced products that pollute.

Now, even as high gasoline prices continue to anger motorists and aggravate financial problems at General Motors Corp. and Ford Motor Co., the oil companies have begun to report record quarterly profit. Yesterday, British energy giant BP PLC reported a $6.53 billion third-quarter profit, up from $4.87 billion in the same period last year. And tomorrow, analysts expect Exxon Mobil Corp. to show that it earned nearly $9 billion over the past three months -- the largest corporate quarterly profit ever.

Grumbling already has begun on Capitol Hill: Last month, one senator proposed a windfall-profit tax on oil conglomerates, and yesterday, House Republicans warned energy companies against price gouging.

To deflect the damage, the energy industry is relying on an ad campaign that was escalating even before hurricanes Katrina and Rita blitzed Gulf Coast petroleum refineries. The print and television ads are designed to educate consumers and lawmakers with a "we're all in this together" tone.

In the pages of The Washington Post, for example, according to the paper's ad executives, BP has taken out seven large issue ads so far this year, compared with zero through the same time last year. Exxon Mobil has had 19 so far this year, compared with 12 last year. For Chevron Corp., it's 17 ads so far this year, compared with six last year. And the industry's trade group, the American Petroleum Institute, has purchased seven ads in The Post so far this year, compared with none last year.
washingtonpost.com