Biden Tells Oil Companies to 'Stop War Profiteering' and Threatens New Corporate Taxes Amid Record Petroleum Profits

"It's time for these companies to stop war profiteering, meet their responsibilities to this country, and give the American people a break."

The price of gas went up after Russia invaded Ukraine in February. The U.S. average is still above what it was this time last year, despite the fact that they have fallen from their June peak. Fossil fuel giants have reported historically high profits.

Last week, ExxonMobil reported a quarterly profit of $19.7 billion, exceeding the previous record set just three months prior. It was the second highest quarterly profit in the company's history at $11.2 billion. The national average price for a gallon of gas in November is more than it is today.

Oil companies are making record profits because they are doing the same things they have always done. The President said that their profits were a windfall of war because of the conflict in Ukraine.

Instead of following through on their promises to reduce emissions, many oil companies have re-routed their record profits into stock buybacks and dividends that reward investors. Immediately after the start of the Ukraine conflict, five oil executives sold their stock shares.

If these companies were making average profits they have been making by refining oil over the last 20 years instead of the outrageous profits they are making today, the price of gas would come down.

Fossil fuel companies are sentencing the whole planet to catastrophic climate change as they fill their coffers to bursting. If the oil giants have so much money, why not use some of it to transition to renewable energy quickly?

That wasn't the message Biden wanted to convey. He urged the companies to use their excess revenue to increase production and refining capacity. That's really bad. He started off very well. The last thing we need from a climate perspective is for these companies to spend more money on drilling and manufacturing oil. They already are. According to the New York Times, American oil production is up 4%. The issue of lack of supply and fossil fuel infrastructure is not as important as it used to be.

The President still called for a degree of corporate accountability despite the mixed messages. If these fossil fuel producers don't adjust to ensure that consumer prices reflect their earnings reality, they're going to pay a higher tax on their excess profits Congress and my team will look at the options available to them. Legislation to regulate oil companies would be difficult to pass through the Senate, since Senator Joe Manchin is in charge.

Gas prices seem to affect presidential approval ratings. People have been happy with Biden when fuel costs go down. He is focusing in on gasoline and blaming fossil fuel companies for the upcoming elections. He is correct that oil companies are benefiting from the war in Ukranian. The President can't have both of them. If Biden wants to be taken seriously on climate, he needs to acknowledge the growing danger and demand that oil companies increase production.