Biden criticises oil companies for “war profiteering”
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Sulaiman
- . November 1, 2022
- . Update: November 11, 2022 1:12 am
As he threatened to impose a windfall tax if they do not increase domestic output, US President Joe Biden on Monday accused oil companies of “war profiteering.”
Biden criticised large oil firms in his succinct remarks for achieving record profits while refusing to assist in lowering gas prices for Americans.
The enormous profits made by oil firms today are not the result of novel or inventive practises, according to Biden. Their earnings are a bonanza of war, a windfall for the horrible conflict destroying Ukraine and harming tens of millions of people worldwide.
If oil firms do not start using some of their earnings to reduce prices for US consumers, the president said he will turn to Congress to impose tax penalties.
The choices that are open to us and others will be examined by my staff and Congress, Biden added. It’s time for these businesses to stop making money off of war, fulfil their obligations to this nation, and offer the American people a rest while still doing well.
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ExxonMobil, which earned earnings of $19.7 billion (€19.8 billion) in just the third quarter, was the target of Biden’s criticism. He attacked the company’s Irving, Texas, headquarters for utilising record earnings to pay shareholders hefty dividends and stock buybacks while forgoing investments in production upgrades that would benefit the final consumers.
Chevron, another oil firm, nearly surpassed its record-breaking third-quarter profits with earnings of $11.23 billion (€11.3 billion).
ExxonMobil, Chevron, Shell, BP, ConocoPhillips, and Total Energy made over €100 billion in earnings over the past two quarters—more than they did the year before and over three times what they did in the same quarters of 2021.
High gas costs have made inflation worse and hurt the popularity of Democrats and Vice President Biden with Americans.
Any extra taxes on energy producers would need to be approved by Congress, which would be a difficult task in the present Congress where Democrats have a tenuous hold on the House and Senate, and even less likely should Republicans gain back one or both houses on November 8.
According to AAA, Americans have been suffering from exorbitantly high gas prices in recent months, spending more than €4.80 on average for a gallon (about four litres) of normal at the beginning of July.
Since then, the national average has decreased to €3.78, although the White House claims they ought to be lower considering drops in oil prices around the world during the same time period.
Can’t believe I have to say it, but raising prices for American families is not the same as handing profits to shareholders, Biden tweeted on Friday.
Since complaining in public that “Exxon made more money than God this year,” Biden has been critical of the financial success of energy companies.
