WASHINGTON - Even as Chevron reported $6.2 billion in profits over the first three months of 2011, potentially questionable television advertisements by the company claim that it spent “every penny and more" of the $19.1 billion in 2010 profits on “bringing energy to the world." Rep. Edward J. Markey (D-Mass.) today queried the company about this claim, citing the $6.5 billion spent by the company in 2010 on buying its own stock and giving profit dividends to shareholders, as opposed to the $1.1 billion it spent on exploration for energy.
“I am concerned that you have created a misleading ad that deceives consumers and deflects attention away from your industry’s attempts to protect billions of dollars in tax breaks," Rep. Markey said in the letter to Chevron CEO John S. Watson. “Left uncorrected, I fear that this advertisement gives the perception that the high gas prices consumers are now paying at the pump are leading to energy producers like Chevron increasing investments in exploration to produce new energy. However, in reality, investments in exploration at your company declined in 2009 and again in 2010."
The full letter is available HERE. The letter was referred to the Federal Trade Commission, which protects consumers from unfair or deceptive advertising and marketing practices
The advertisement is called “We Agree-Growth and Jobs TV" and is part of a larger branded advertisement campaign by the company.
Rep. Markey is the top Democrat on the Natural Resources Committee and a senior member of the Energy and Commerce Committee.
