US President Joe Biden has criticized oil and gas companies for reaping big profits after crude prices skyrocketed following the Russian invasion of Ukraine. Biden warned ahead of the Nov. 8 midterm elections that if oil majors don't invest their profits to cut costs to American consumers, they could face an extraordinary tax.
U.S. rivals Chevron and ExxonMobil have reported profits in the region of $70 billion this year, nearly tripling from 2021. Biden said Monday that record profits were "a fluke from the brutal conflict that rages on “. Injuring tens of thousands of people around the world. "I'm still very well," he said.
The President also issued a warning that companies could face "higher taxes on their excess profits and other restrictions". A week before the midterm elections, Biden's comments were seen as an attempt to appeal to voters grappling with persistently high inflation.
Republicans have had gains among voters this year on the back of rising energy prices, particularly the cost of fuel for
cars following the invasion. for Russia". According to the American Automobile Association, gasoline prices averaged over $4.80 a gallon in July.
It has since fallen to an average of $3.76 after the Biden administration withdrew 180 million barrels from the Strategic Petroleum Reserve earlier in the year. Jordan said, "Because the Biden administration knows that Americans look to gas prices as a harbinger of their overall economic performance, this was a time for the president to come out on Monday and tell voters he's still working on this issue.
This is exactly the kind of leadership we were waiting for from President Biden in Jamie Henn, a spokesman for the Stop the Oil Profiteering group, said of us at the bomb.
A windfall tax can bring immediate relief by diverting that money into the pockets of American workers. Industry groups have condemned the possibility of a windfall tax, with Anne Bradbury, CEO of the US Exploration and Production Council, saying it would be "probably counterproductive if it drove up more energy bills for American families and businesses.
The House and Senate would have to pass a windfall profits tax. With Congress only back at the end of November, it is unlikely that there will be positive movement on this legislation before the end of this year,” Jordan said.