Two major U.S. oil companies hit back at President Joe Biden this week after he threatened to use “emergency authorities” on them to stem the political fallout from the historic gas prices that have erupted under his administration.
Biden’s threat was contained in a letter that he sent to ExxonMobil, Phillips 66, Chevron, BP, Shell, Marathon Petroleum Corp, and Valero Energy Corp.
“There is no question that Vladimir Putin is principally responsible for the intense financial pain the American people and their families are bearing,” Biden claimed, failing to mention that gas prices were already surging before Russia invaded Ukraine. “But amid a war that has raised gasoline prices more than $1.70 per gallon, historically high refinery profit margins are worsening that pain.”
Biden demanded that the companies “take immediate actions to increase the supply of gasoline, diesel and other refined product you are producing,” he said in the letter. “Unfortunately, what we have seen since January 2021 are policies that send a message that the Administration aims to impose obstacles to our industry delivering energy resources the world needs.”
ExxonMobil responded by saying that they have been in “regular contact with the administration” to remind them of the extraordinary efforts the company has made in investing in energy production, which they say are more “than any other company.”
“In the short term, the U.S. government could enact measures often used in emergencies following hurricanes or other supply disruptions — such as waivers of Jones Act provisions and some fuel specifications to increase supplies,” the company said. “Longer term, government can promote investment through clear and consistent policy that supports U.S. resource development, such as regular and predictable lease sales, as well as streamlined regulatory approval and support for infrastructure such as pipelines.”
Chevron slammed the administration in response to Biden’s letter, writing: “Unfortunately, what we have seen since January 2021 are policies that send a message that the Administration aims to impose obstacles to our industry delivering energy resources the world needs.”