CEO's can release statements that have major effects on how an industry or company is viewed. Many people look to the CEO for guidance about the successes and failures of a company as well as what the company is doing for the future. In addition a CEO's statement can reveal a company's overall views towards certain issues. Therefore when a CEO releases a statement praising another company or industry in which they are involved in, it could mean that the CEO's company could be looking in the direction of a successful future or growth.
Chevron Corporation's CEO John Watson recently released a statement in October about his views on the the U.S. agency that oversees offshore drilling of oil contrary to what many other companies say about this agency with relation to the oil and gas industry. Watson congratulated the efforts being taken towards the drilling applications for oil companies wanting to drill in the Gulf. He stated, "I think we have civil servants that are working very hard to processes the permits," in his speech at the Peterson Institute for International Politics.
With this new system of application processing this could mean that more companies in the oil industry will be able to drill in the Gulf, potentially leading to a higher supply of oil within the industry at a whole, ultimately leading to growth in the overall industry.
The permits granted from the application process have been a hot topic in politics, mostly among Republicans and Gulf Coast lawmakers in the Gulf area due to the extremely slow application process. Michael Bromwich, the director of Interior's Bureau of Safety and Environmental Enforcement is working to create new drilling standards (including tax increases in the industry) in the area after the Deepwater Horizon spill in April of 2010, standards that Chevron has passed.
Resource:
http://www.foxbusiness.com/markets/2011/10/19/chevron-ceo-praises-us-oil-drilling-agency-frequent-target-criticism/
CEO's are generally the most knowledgeable individuals as to how their companies operate. John Watson and Richard Kinder—CEO of Kinder Morgan—are well known leaders within the oil and natural gas industry. If we can find more of their personal statements, we might gain a better perspective of where the energy future lies. When we are writing our investment, we have looked particularly into the growing market for natural gas in the United States. We should try and put in statements from either CEO about where they think the future markets for natural gas may be. Nice job Lela.
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