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Exxon has been making decisions about spending money based on assumptions about oil prices returning to the $20-a-barrel range, analysts said. Raymond chafes at questions about why the company isn't spending more on exploration and drilling, noting that spending has increased.
"First, we will not do anything stupid or silly," Raymond told analysts in March. "Secondly, don't expect us to take mechanistic or knee-jerk reactions."
Company officials say they expect prices to eventually decline, and given that it takes years to develop an oil field, Exxon has to make sure it will achieve sufficient profit when a project comes online.
Analysts said the company's cautious approach to spending money stems from its almost singular focus on the bottom line.
"They have great market discipline where companies like BP and Chevron are perhaps a little more aggressive in projects they might go after -- either lower-return projects or projects that have higher risk-return potential," said Paul Larson, a Morningstar Inc. stock analyst.
Raymond is gruff and prickly. Appearing before analysts or reporters, he has snapped at them and denounced their questions.
At Exxon's annual meeting in Dallas in May, activists and shareholders pushed resolutions dealing with subjects including global warming, the environment, human rights and gay rights. The resolutions were opposed by the company and defeated. Speakers launched wide assaults on the company. Residents of Aceh, Indonesia, were there to claim that military units working with Exxon to guard its operations were responsible for human rights abuses.
Some shareholder groups and state pension officials complained that the company is poorly positioned compared with its competitors for the next generation of energy production and tightening pollution regulations.
When speakers ran beyond their allotted time, Raymond ordered their microphones cut off. He occasionally rolled his eyes and shook his head as shareholders spoke.
Despite complaints aired at the shareholders meeting, plenty of attendees who did not speak were thrilled with Raymond and the company's performance.
"I'm real pleased," said J. Howard Morgan, a retired banker from Wichita Falls, Tex. "Profits are good. Dividends couldn't be better."
