The surge in energy prices globally persists as countries impose sanctions on Russia for its invasion of Ukraine. With the reduction in Russian oil exports, American oil producers have had to step up production. However, President Joe Biden believes their efforts are inadequate.
During a speech at the White House, Biden criticized American oil companies for hiking prices without significantly boosting production, accusing them of profiteering during wartime. He emphasized that they should invest in America by increasing production and refining capacity to benefit consumers, communities, and the country.
While acknowledging that Putin bears responsibility for the escalating fuel costs, Biden emphasized the need for domestic oil producers to meet the demand. He warned that if energy prices continue to climb, he is contemplating imposing a substantial tax hike on oil companies to bridge the gap.
In the last six months, 6 of the largest oil companies made over $100 billion in profits.
$100 billion in less than 200 days.
If these companies were taking average profits on refining, instead of the profits they’re making today, gas prices would come down around 50 cents.
— President Biden (@POTUS) November 1, 2022
This is not the first time Biden has raised this possibility, but Western oil producers argue that higher taxes would discourage investment. “Increasing taxes on American energy discourages investment in new production, which is the exact opposite of what is needed. American families and businesses are looking to lawmakers for solutions, not campaign rhetoric,” stated American Petroleum Institute president Mike Sommers in an interview with The Hill.
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