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Biden calls on oil, gas companies to stop 'war profiteering,' threatens windfall tax

Published 10/31/2022, 10:59 AM
Updated 11/01/2022, 10:41 AM
© Reuters. FILE PHOTO: U.S. President Joe Biden delivers remarks at the Pennsylvania Democratic Party's third annual Independence Dinner in Philadelphia, Pennsylvania, U.S., October 28, 2022. Reuters/Tasos Katopodis

© Reuters. FILE PHOTO: U.S. President Joe Biden delivers remarks at the Pennsylvania Democratic Party's third annual Independence Dinner in Philadelphia, Pennsylvania, U.S., October 28, 2022. Reuters/Tasos Katopodis

WASHINGTON (Reuters) -U.S. President Joe Biden on Monday called on oil and gas companies to use their record profits to lower costs for Americans and increase production, or pay a higher tax rate, as he battles high pump prices with elections coming in a week.

In remarks at the White House, Biden criticized major oil companies who are bringing in big profits while Americans, weary of inflation, pay a tidy sum to fill up their cars.

The oil industry “has not met its commitment to invest in America and support the American people,” he said. They’re not just making a “fair return” he said, they’re making “profits so high it is hard to believe,” Biden said.

“Their profits are a windfall of war,” he said, of the conflict that is ravaging Ukraine, and they have a responsibility to act.

“I think it’s outrageous,” he said. If they passed those profits on to consumers, gasoline prices would be down about 50 cents, he said.

“If they don’t, they’re going to pay a higher tax on their excess profits, and face other restrictions,” he said. The White House will work with Congress to look at these options and others. “It’s time for these companies to stop war profiteering.”

Biden said oil and gas companies should invest their profits in lowering costs for Americans and increasing production and that if they do not, he will urge Congress to consider requiring oil companies to pay tax penalties and face other restrictions.

The president held the event with a week to go until Americans decide whether his Democrats will remain in control of the U.S. Congress. Republicans are favored to take command of the House of Representatives, while the Senate is viewed as a toss-up.

Global energy giants including Exxon Mobil Corp (NYSE:XOM) and Chevron Corp (NYSE:CVX) posted another round of huge quarterly profits, benefiting from surging natural gas and fuel prices that have boosted inflation around the world and led to fresh calls to further tax the sector.

Whether Democrats or Republicans take control of Congress, passing a law taxing energy companies for excess profits would likely be difficult, energy experts believe.

© Reuters. FILE PHOTO: U.S. President Joe Biden delivers remarks at the Pennsylvania Democratic Party's third annual Independence Dinner in Philadelphia, Pennsylvania, U.S., October 28, 2022. Reuters/Tasos Katopodis

The White House for months has been considering congressional proposals that could tax oil and gas producers' profits as consumers struggling with higher energy prices.

British lawmakers in July approved a 25% windfall tax on oil and gas producers in the British North Sea that was expected to raise 5 billion pounds ($5.95 billion) in one year to help people struggling with soaring energy bills.

Latest comments

He created the problem himself on day one of his presidency but now he blames everybody except himself, what a guy
Does he know what day it is??
Please continue to release oil reserve for your election. Let’s sew the result. Its predictatable. After the election, oil price will be mainteained at medium yo high level
I thought USA and England are free countries. On top of war, Biden keep printing money post covid, demand and supplies mismatch etc.. these are the main factors causing inflation goes sky high. When oil price was low, is there any incentive provided, i doubt it. If i am the oil operator, i wouldnt increase capex. Free country? I doubt it too
Meanwhile,  Pfizer plans to roughly quadruple the price of the "vaccine" in the United States once the government stops buying doses and shifts to a private market. "Our COVID-19 franchises will remain multi-billion-dollar revenue generators for the foreseeable future," Chief Executive Officer Albert Bourla said ahead of a conference call. Where's the outrage? Is this pandemic profiteering, Joe?
Up Next: "Biden Threatens Any Corporation That Doesn't Give Raises Before November 8."
The US had not declared a war old Joe.
Keyston would send the US about 850,000 bpd. It cancels the development of new projects, cutting supply, and when demand increases, it cries over price increases. What hypocrisy!
Ignorant right wing trolls, bots and minions base all your assumptions on fact free right wing propaganda fed to you by your fascist elite masters. You're standing on the pavement outside their gates, guarding their mansions, hoping one day they will throw some scraps your way. But they never do..
lol.. your brainwashing is very thorough. yours masters should be proud.
I see lots of facts here.
Let’s not forget Day 1 …Keystone Pipeline…. “ I did that…” …
How bout those executive orders
A “toss up”? Who would still vote democrat lol
It’s the diesel inventory is historically dangerously low. 20% below 5-year average. If this inventory is around the average, we can talk about the lowered prices
The spin-doctor is in... yes profits on a dollar-per-time basis are up because of inflation, but they are worth less.  Unfortunately, what he neglects to tell people is profits are down on a per dollar invested basis, but why let reality get in the way of his agenda?
His agenda blows!  98+% of our infrastructure relies on fossil fuel.  I know....Lets hamstring the oil industry and pull from our national reserves!  That will show em!  We'll take it to the oil companies like I did to "Corn Pop"!
yes and why would the energy industry want to risk investment money at this time with his policies? so instead of investing it in a way that brings down costs over time, this quarter, and for next nine quarters with Biden demonizing the industry, it simply will become profit instead.  economics 101
Easy fix, change your foreign policy
yes just do like trump would have done and sell ukraine to putin
No mention of the diesel shortage, which has the potential to cripple our economy.
I wonder who shut down the keystone, citing “environmental” reasons. Can Joe respond?
He could but it would sound like an echo because he's talking out of his ********
Haven't heard him complain about the profits of tech companies, guess they paid for his campaign though
Joe passing the blame on oil companies this week. Wonder who it will be next week!?
Drain more from the national reserve while kneeling before our enemies.  The Democrat Way!
Time to drain more of our reserves while putting us at the mercy of our enemies!  Joe is a dumba$$!
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