After a report showing inflation at a record 40-year high, President Joe Biden accused Exxon Mobil Corp. and other oil companies of profiting from high gasoline prices.
“We’re going make sure everyone knows Exxon’s profits. Biden stated that Exxon made more money last year than God during an event at Los Angeles’ Port of Los Angeles.
Exxon’s profits will almost double to $43 billion this year, making it its second-best record. Consumers are paying higher fuel prices than ever before, and Exxon’s fortunes as a Texas oil company directly intersect with theirs. AAA reported that regular gasoline cost $4.99 per gallon in the United States on June 10.
President Biden calls out @exxonmobil made more money than God this year,” says President Joe Biden in response to a question about rising retail #gasoline prices #OOTT 🇺🇸 pic.twitter.com/93RYqS1LEk https://t.co/z2qsRuaK8k
— Share_Talk ™ (@Share_Talk) June 11, 2022
As Biden heads into the midterm elections in November, rising energy costs have been a major political challenge. They are being fueled by Covid-19 shutdowns, underinvestment in new drilling and Russia’s war against Ukraine. Blaming energy companies will not encourage them to increase supplies. This is especially true given that Democrats and investors have spent the past few years advocating for lower carbon emissions.
Biden encouraged domestic oil companies to increase production. He stated that they would rather sell their stock than drill on the land they own permits.
Biden stated that “the reason they aren’t drilling is that they’re buying their own stock, which should be taxed quite frankly. They’re buying their stock back and making no new investments.” “So, I have always believed that Republicans are good for investment. Exxon: Start investing and pay your taxes.
Casey Norton, Exxon’s spokesperson, stated that the company had “been in constant contact with the administration, informing them about our planned investments to expand production and refine capacity in the United States.”
Norton stated that Exxon plans to increase US oil production by 25% and increase its refining capacity by approximately 250,000 barrels per hour. This is the equivalent to adding a medium-sized refinery.
He noted that the company suffered losses exceeding $20 billion in 2020. It also borrowed heavily to finance production during the pandemic. Norton stated that Exxon Mobil’s 2021 income statement included $40.6 billion in taxes.
During a visit to Los Angeles Port, the president spoke. He defended his economic record and deflected responsibility for inflation which spiked 8.6% in May according to a Labor Department report.
Janet Yellen is Biden’s treasury secretary and has rejected the notion that corporate greed is contributing to inflation. This breaks with President Obama and other top Democrats, who have accused major corporations of price gouging, or raking up excessive profits.
When asked if corporate greed is causing price rises, Yellen stated that “Demand is largely driving inflation.”
