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Global energy market highlights
Prices for crude oil and petroleum products are set by worldwide markets comprised of multiple players reacting to their perceptions of supply and demand. Policies and initiatives need to be advanced that support the underlying economic fundamentals that lead to a balanced oil marketplace. In the U.S., this includes support for increased domestic energy production, and focused efforts to reduce the complexities and regulatory limitations that are creeping into the refinery and logistics systems due to the proliferation of specialty fuels and other factors.
For quick reference, download: Responding to world energy needs and fostering economic recovery
Fuel prices are impacted by a number of factors, including changes in the price of crude oil, supply and demand, fuel specifications, government regulations, taxes, and transportation costs.
Global supply and demand for crude oil and petroleum products has the biggest influence on the price of gasoline at the pump in the U.S.
As global commodities, oil and petroleum products (including gasoline and diesel) are subject to the price swings in free markets and can be dramatically influenced by perceptions about future supply and demand.
While the current global economic downturn has dampened world energy demand, ExxonMobil's long-term projection is for demand to increase by 35 percent (2005 to 2030), driven by growing population and economic growth, particularly in developing countries.
Using energy efficiently, investing in technology, and promoting access and global diversity of supplies are vital to long-term energy security.
Many of the best opportunities for developing additional domestic oil and gas supplies have been placed "off limits" by government policies, although the longstanding ban on Outer Continental Shelf (OCS) oil and gas leasing was recently lifted by Congress.
Meeting growing global energy demand requires sustained investments, through periods of both low and high commodity prices.
ExxonMobil's earnings, although high in absolute terms, need to be viewed in the context of the scale of our industry, as well as the huge investment requirements.
ExxonMobil's U.S. tax burden is already very large.
