Biden calls on oil companies to increase production after months of massive profits

[turbinetree]

By Oliver Willis -June 15, 2022 4:30 PM0 Comments21

Large oil companies took in over $22 billion in profits in the first quarter of 2022 as gas prices have soared.

President Joe Biden sent a letter on Tuesday to executives at seven of the largest oil refining companies in the country, calling on them to increase production capacity as Americans face high fuel costs and the companies reap massive profits.

The letter reads in part:


Published with permission of The American Independent Foundation.

https://americanindependent.com/president-joe-biden-oil-gas-industry-companies-profits-gasoline-prices-production-capacity/

Guess what the oil industry said....gaslighting BS........while Biden said this country is trying to defend a democracy in another part of the world and the oil companies basically telling the citizens in this country their greed is more fucking important and gaslighting is more important because after all your an oligarchy and didn't some of you fuckers make deals with a dictators .....and you fuckers got 9,000 permits to find oil from the Biden administration.......

[TheRealNorth]

1. Why would they do that?

That would hinder their desire to elect Republicans, who will give the more tax breaks and subsidies, and cut back pollution laws and other regulations.

Asking nicely won't work. Sending EPA inspectors to fine them on every minor workplace infraction until they increase production might.

[PXR-5]

2. Biden should revoke all those drilling permits that

He and TFG approved, if they are not going to DBD.

(Drill Baby Drill)

[In It to Win It]

8. My impression is that they're trying to get him to extend more leases and permits

and uses high prices as a pressure point.

[PoindexterOglethorpe]

3. How about windfall taxes?

[walkingman]

5. Yes - that should happen but in the long run I think it is time to regulate all fossil fuel

companies in the US. They should go through a rate-making process like telecommunications providers, natural gas providers, electricity companies, and railroads did in the past.

If this is not possible then "nationalization" is the answer. Should the fossil fuel companies be permitted to profit at all by selling products that we know are destroying the planet? Of course not.

As Thomas Hanna writes in his excellent “A History of Nationalization in the United States: 1917–2009”:

The United States actually has a long and rich tradition of nationalizing private enterprise, especially during times of economic and social crisis. Importantly, this approach has often been deployed when private companies are hindering national efforts to address a crisis (either through obstruction, incompetence, or incapacity). This history of nationalization … suggests that far from being a non-starter, a public takeover of the fossil fuel industry should be considered an eminently plausible and viable policy option for dealing with the … climate crisis.

[MichMan]

4. What was their percentage of profit based on revenue?

22 billion is a lot of dollars, but compared to total revenues may or may not be an excessive profit.

What amount of profit defines being a windfall? 10 %, 25%, 40% ?

[walkingman]

6. From August 1971 to January 1981 the federal government controlled the price of domestic oil.

The OPEC oil crisis was a major cause of "stagflation" in the 70s and although this is more about domestic production or lack of it is having similar effects. It also would provide an incentive to move more rapidly away from fossil fuels sooner rather than later.

IMO- this should not be a political issue. It is about making our economy more stable by eliminating the constant ups and downs of the fossil fuel industry and the uncontrollable geopolitical issues.

[MichMan]

7. I remember long gas lines, gas stations running out and big price increases in the 70's

If the government controlled the price of oil, it was a complete debacle and ruinous towards the economy.

[walkingman]

10. Not quite that simplistic - much too complex to explain here - just google it.

Last edited Wed Jun 15, 2022, 11:09 PM - Edit history (1)

The long gas lines were the result of the OPEC oil embargo. The oil companies took advantage of the shortages as I suspect is happening these days.

No matter how much people would like to say that "the government is the problem" that is simply a mostly GOP declaration since the Reagan days with his infamous quote "The nine most terrifying words in the English language are: I'm from the Government, and I'm here to help. "

IMO, the real problem is the fact that the GOP just hates government (except for social issues) and when in office does everything in their power to remove it's influence with the idea that the "free market" is their GOD.

Unfetter Capitalism is just a small step away from Fascism.

[NickB79]

9. Hard to reconcile that with calls to reduce carbon emissions to fight climate change

Always figured that, when push came to shove, we'd choose more fossil fuels instead of dealing with the pain of reducing our use of it.