December 9, 2022

The oil industry reacts to Biden's threat of a potential dividend tax

The oil industry reacts to Biden’s threat of a potential dividend tax

Oil industry groups interact with President Joe Biden On Monday, he threatens to impose a potential windfall profit tax or other fallout if oil companies do not invest in increasing US production and lowering consumer prices.

In his remarks Monday, the president said that oil companies Recent earnings It was a “war windfall” in Ukraine, urging them to direct some of the profits to boost their American production and refining capabilities and lower gas prices that Americans see at the pump. He said he believed they had “a responsibility to act in the interests of consumers, their community and their country”.

Biden oil company profits, wind cascade taxes threaten as punishment

“If they don’t, they will pay a higher tax on their excess profits and face other constraints. “My team will do that Working with Congress To consider these options available to us and others. It’s time for these companies to stop the exploitation of the war.”

A view of the ExxonMobil Baton Rouge refinery in Baton Rouge, Louisiana, US, May 15, 2021. Exxon Mobil Corp. is considering a pledge to cut net carbon emissions to zero by 2050, according to people familiar with the matter, as it will (Reuters/Kathleen Flynn/File Photo/Reuters Photo)

in statement Mike Summers, president and CEO of the American Petroleum Institute (API), said US families and companies “look to lawmakers for solutions, not campaign rhetoric.”

Sommers also accused the Biden administration of taking credit for “every cent of declines in Gasoline pricesBut when prices go in the opposite direction, he starts pointing fingers” on a call with reporters on Tuesday morning.

“Increasing US energy taxes discourages investment in new production,” he said in both the statement and the call with reporters, noting that trade mark Determine gasoline prices. He also told reporters that “bad politics matter.”

Former Obama Economic Adviser Questions

while appearing in “Kudlow” In the afternoon, Somers declined to comment Biden was “war profiteering.”

“The accusation they made about this industry – an industry in the way that it authorized itself and refused to take any more Russian oil at the beginning of this terrible war going on in Europe, an industry that spontaneously withdrew from Russia without forgetting you. From the Federal Government – to them, to say that this Industry, the most patriotic industry I know of in our country, would be war profiteering is a very outrageous comment.”

Chet Thompson, CEO and president of American Fuel and Petrochemical Manufacturers, accused Biden of being “more concerned about political situations” before mid-term From “Developing Energy Policies That Will Actually Achieve the American People”.

“A windfall tax may be good sounding signals, but as a policy, it is bad for consumers,” he said. in the current situation. “It would potentially dampen fuel production and make matters worse for drivers.”

President Biden speaking at the event

President Joe Biden speaks during the “Accelerating Clean Technology Innovation and Diffusion” event at the UN COP26 Climate Summit, November 2, 2021, in Glasgow, Scotland. Management retains its first onshore oil and gas lease sales (AP Photo/Evan Vucci, Pool, File/AP Newsroom)

Abdullah Hassan, White House spokesman, made a statement to Fox Business Tuesday.

“This rich is coming from an industry that uses record profits To fill shareholder pockets rather than increase production and refining capacity so families can pay less for gas.”

Hassan, echoing part of Biden’s comments on Monday, said “Six of the biggest oil companies They raked in more than $100 billion in profits in the past six months alone,” before saying they had spent more than $50 billion of it on dividends and share buybacks.

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“Of course they want to continue to benefit from wartime with impunity,” he added. But the president was clear: If they don’t change their behavior, he will hold them accountable to protect the interests of American families.

Biden said Monday that people will “hear more” on the issue “when Congress returns.”

gas pump

A nozzle pumps gasoline into a car at a gas station in Los Angeles, California on October 5, 2022. (FREDERIC J. BROWN/AFP via Getty Images/Getty Images)

At the time of publication, the national average price for regular gas was $3,758, compared to $3,800 a month ago and $3,402 a year ago. to me AAA. In mid-June, AAA reported that the national average price for regular unleaded gas reached a record $5,016.