President Biden decries oil companies for amassing record profits amid the Russia-Ukraine crisis and threatens higher taxes. In addition, the US President fired the warning shot while addressing gasoline prices and oil company profits at the White House.
- The US President has slammed oil and gas companies for making huge profits.
- Crude prices skyrocketed following Russia’s invasion of Ukraine.
- Rivals Chevron and ExxonMobil have reported profits in the $70 billion range this year, an almost three-fold rise from 2021.
Biden: ”Stop war profiteering”
US President Joe Biden has condemned oil and gas companies for making huge profits when crude prices skyrocketed following Russia’s invasion of Ukraine.
Speaking ahead of the November 8 midterm elections, Biden cautioned that if major oil companies do not invest some of their profits in lowering costs for American consumers, they may face a windfall tax.
US competitors Chevron and ExxonMobil have reported profits in the $70 billion range this year, an almost three-fold rise from 2021.
Biden stated on Monday that the record profits resulted from the horrific conflict that is devouring Ukraine and affecting tens of thousands of people worldwide.
According to the president, it is time for these companies to stop profiting from war, meet their responsibilities to America, and give the American people a break while still doing exceptionally well.
The president also warned that companies could face higher taxes on their surplus profits and other restrictions.
With the midterm elections just a week away, Biden’sBiden’s remarks have been interpreted as an attempt to reach out to voters plagued by continuing high inflation.
GOP gains ground as Biden employs SPR
Republicans have made headway with voters this year due to the rise in energy prices, particularly the cost of car fuel following Russia’sRussia’s invasion of Ukraine.
According to the American Automobile Association, the average price of gasoline in July was more than $4.80 per gallon. It has since plummeted to $3.76 on average after Biden’sBiden’s government drew 180 million barrels from the Strategic Petroleum Reserve earlier this year.
Given that the Biden administration is aware that Americans view gasoline prices as a barometer of their overall economic health, this was a price for the president to come out on Monday and tell voters that he is still working on this problem.”
According to Jamie Henn, a representative for the group Stop the Oil Profiteering, we’ve been looking for this type of leadership from President Biden.
Prospect of a windfall tax
This year, Big Oil has gained roughly $300 billion in extra profits by exploiting Americans at the pump. A windfall profits tax can give immediate relief by diverting that money into the pockets of hardworking Americans.
The prospect of a windfall tax has been criticized by industry organizations, with American Exploration & Production Council CEO Anne Bradbury claiming it would likely backfire by increasing energy costs for American families and businesses.
A windfall tax would have to be passed by Congress, where Democrats have only a slim majority in the House and Senate.
So far, the proposal hasn’t gained any traction, and because Congress won’t be back until late November, it’s unlikely you’ll see any meaningful movement on it before the end of the year.