ExxonMobil and Chevron released statements this week saying the Biden administration could be doing more to address oil prices as the president has gone after the companies for making large profits while gas prices spike.
On Tuesday, President Biden slammed oil executives in a letter saying they had unacceptable high profit margins while regular Americans are suffering and calling on the industry to work with the administration to address increased prices from the Russian invasion of Ukraine.
“We understand the significant concerns around higher fuel prices currently faced by consumers around the country, and the world. We share these concerns, and expect the Administration’s approach to energy policy will start to better reflect the importance of addressing them,” Chevron said in a statement targeting Biden.
ExxonMobil offered short- and long-term solutions for high oil prices in response.
The company said emergency measures “such as waivers of Jones Act provisions and some fuel specifications to increase supplies” could be used to address short term concerns. Long term policies could include “streamlined regulatory approval and support for infrastructure such as pipelines,” it suggested.
Chevron said that since Biden got into office, the administration has relayed that it will “impose obstacles to our industry delivering energy resources the world needs.”
Both companies highlighted in statements measures they have taken during this time where Americans are seeing the highest gas prices in years.
Chevron said it will be increasing Permian Basin production by more than 15 percent this year. ExxonMobil says it has increased refining capacity to process U.S. light crude by around 250,000 barrels a day.
After the pandemic, ExxonMobil also stressed it borrowed $30 billion to prepare for ...-pandemic increase in oil demand.
In response to the oil price increases, Biden has released an unprecedented amount of oil from the Strategic Petroleum Reserve.
However, the war in Ukraine put a further strain on the global energy supply which has added to the U.S.’s struggles with inflation and fuel prices in particular.
“The crunch that families are facing deserves immediate action,” Biden said in the letter. “Your companies need to work with my Administration to bring forward concrete, near-term solutions that address the crisis and respect the critical equities of energy workers and fence-line communities.”