On Monday, President Joe Biden criticized major oil companies’ recent earnings, urging them to invest profits in increasing U.S. production and lowering consumer prices or face possible restrictions.
Biden, arguing that oil companies’ recent profits were a “windfall of war” in Ukraine, said he thinks they have a “responsibility to act in the interest of their consumers, their community and their country.” He urged them to direct some profits to boost their U.S. production and refining capacity and to lower gas prices Americans see at the pump.
“If they don’t, they’re going to pay a higher tax on their excess profits and face other restrictions,” the president said. “My team will work with Congress to look at these options that are available to us and others. It’s time for these companies to stop war profiteering.”
Last week, some oil companies reported large quarterly profits.
ExxonMobil said it generated $112.07 billion in third-quarter revenue and $19.7 billion in net income, respective increases of roughly 52% and 191% year-over-year. Chevron’s quarterly profit rose 84% to $11.23 billion while its revenue jumped 49% to $66.64 billion.
Meanwhile, for its third quarter, Shell said it had $9.45 billion in adjusted earnings, up from $4.13 billion in the same period the prior year.
During his remarks, Biden called recent oil company profits “outrageous” and argued that gas prices could become lower by roughly 50 cents if excess profits were passed onto consumers.
At the time of publication, the national average price for regular-grade gas was $3.762, compared to $3.797 one month ago and $3.401 a year ago, according to AAA. In mid-June, AAA reported the national average price for regular unleaded gas reached a record-high $5.016.
Biden said people would “hear more” on the matter “when the Congress gets back.”
