The prices of energy are still climbing globally as nations persist in imposing penalties on Russia for its continuous invasion of Ukraine. With the decrease in Russian oil exports, local oil producers have had to step up their output. Yet, in President Joe Biden’s view, their present endeavors fall short.
During a public address at the White House on Monday, Biden criticized American oil corporations for elevating prices without a corresponding boost in production, alleging them of profiting during wartime. “They have an obligation to act in the best interest of their consumers, local community, and nation, to invest in America by increasing production and refining capabilities,” stated Biden.
Biden acknowledged that the surge in fuel costs is mainly due to Russian President Vladimir Putin. Nonetheless, he emphasized that domestic oil producers still need to do their share to meet the demand. Consequently, the President cautioned that if energy prices persist in escalating, he is contemplating imposing a substantial tax increase on oil corporations to compensate for the disparity.
In the last six months, 6 of the largest oil companies made over $100 billion in profits.
$100 billion in under 200 days.
If these corporations were earning standard profits on refining, as opposed to the current extravagant profits, gasoline costs would decrease by approximately 50 cents.
— President Biden (@POTUS) November 1, 2022
This isn’t the first occasion Biden has issued such a warning, but western oil producers have countered that heightened taxes would only deter them further. “Increasing taxations on American energy dissuades investment in new production, which contradicts the current necessities. American households and enterprises are seeking resolutions from lawmakers, not political rhetoric,” remarked American Petroleum Institute president Mike Sommers during an interview with The Hill.
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