It seems like the majority of complaints and bad PR related to the major oil companies, comes from their retail operations. I never hear people cursing about obscene profits being made by Anadarko, Apache, Occidental, EOG, Devon, Chesapeake, Encana, etc (collectively, the “Large Independents”). They all are large oil companies that have been making record profits during the past few years. Nevertheless, I only hear people complaining about Exxon, Shell, BP, Chevron, and Conoco (collectively the “Majors”).
Now, from a market cap standpoint, the Majors are certainly larger, so I’m sure that has something to do with the attention that is paid to them. However, it seems to me that the negative perception is probably predominantly due to the fact that the average person knows about the Majors because their name is on the sign at the retail store where they buy their gasoline. The Large Independents have probably gained more by the current price increases in terms of growth in profit margins. Why don’t they get the same wrath directed to them from the public and the press?
If the Majors ceased their retail operations and you simply bought your gasoline from Walmart, grocery stores, and random convenience stores, would the Majors’ public image improve?
“If the Majors ceased their retail operations and you simply bought your gasoline from Walmart, grocery stores, and random convenience stores, would the Majors’ public image improve?”
The major retailers in my area seem to be the cheaper of the lot which is a change from 10 years ago. Keep in mind the limited number of stations I see and I don’t know the relationships involved. They could all be independently owned for all I know.
After literally decades of anti-Big Oil™ propaganda from pretty much all sides (though mostly from the left wing anti-Big Business propaganda machine) I think it’s a bit late in the game for them to change their image. We all ‘know’ that Big Oil™ is gouging prices. The fact that there have been endless investiagations that haven’t really produced much results wise proves the case! The gubermint is in on it!
I expect the nuclear industry to become popular before I expect to see Big Oil™’s image improve…
Aside from rising prices they have a bad image in environmental issues and a huge portion of toxic tort litigation is against oil companies as well.
Exxon is fighting a 3 billion dollar judgment for punitive damages stemming from the Exxon Valdes incident right now and had a 1 billion judgement for radiation contamination of land in LA remanded to 112 million which they appealed and lost.
Exxon could have paid the Valdez claim and made the area whole. It would have been positive press. They did not because they don’t have to. They do not care what people think.
I’m not an image expert, but I think that’s an intersting question. I used to work for EnCana, and when I tell Canadians that, many have never heard of EnCana, despite it being Canada’s largest or maybe second largest company.
The point would be that the majors don’t even really make any money off of their retail operations. They seem to serve no other purpose than to engender hatred of the companies. Maybe the majors wouldn’t have everyone in the country hating them if they dumped this non-essential line of business. Maybe they would have less congressional oversight.
You’re correct. It would actually work. Companies change names all the time in order to escape from brand issues. British Petroleum became Beyond Petroleum, put up all the Green sunburst/flowers on their stations and their image changed instantly. People are shallow and fickle. This would absolutely work.
I guess my post was somewhat prophetic. Earlier today, Exxon announced plans to sell their remaining U.S. gas stations. link I don’t see the point in keeping the brand usage though.
I don’t think it would change much in the eyes of the general public in the US.
Around my suburb, the “mom & pop” gas stations are more expensive than the name brands. The name brand stations make their profits in total corporate volume, something that a single station owner can’t compete with. (Gas prices for both types of stations, of course, also seem to be in a direct relation to their proximity to a freeway offramp. )
If all of the name brand stations become independently owned, I predict that prices would rise slightly, as they no longer have the protection of the rest of a huge corporation to absorb temporary slow downs in the market. More so, if the stations were divided into local small buisnesses.
These independent operators would then blame “big oil” for charging them a lot of money for the product they sell, forcing them to pass this cost along to the consumer.
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