MercoPress. South Atlantic News Agency

Biden calls oil producers to lend a hand and share earnings

Biden needs to make life easier for US citizens ahead of the mid-term elections

US President Joseph Biden Monday urged oil producers to stop “war profiteering,” after record gains amid rampant inflation and global crisis.

The Democratic leader also underlined it would be in the companies' best interest to follow his advice because, otherwise, they would have to pay more taxes on their windfall profits and face other restrictions.

Thanks to a surge in crude oil prices following Russia's invasion of Ukraine, US hydrocarbon giants ExxonMobil and Chevron posted huge third-quarter profits. ExxonMobil earned US$ 19.7 billion, a record level, while Chevron earned US$ 11.2 billion, just shy of its record from the previous quarter. Amid soaring energy prices fueled by the war in Ukraine, European groups also made significant profits: Shell earned US$ 6.7 billion, TotalEnergies US$ 6.6 billion, and Eni US$ 5.9 billion.

Two years ago when, at the height of the pandemic, energy prices collapsed, which meant huge losses for hydrocarbon producers.

Just days ahead of the Nov. 8 mid-term elections, there have been discussions about US industry turning a portion of its profits directly to the American people. Biden underlined there was a huge difference between dumping profits for shareholders and lowering prices for American families.

To keep the price of gasoline at pumps under control, the US government released some 180 million barrels of crude oil from the country's strategic reserves onto the market, an unprecedented decision.

Biden also said he would ask Congress to consider taxing oil companies and imposing other restrictions if they were unwilling to mitigate the impact of inflation on US households. The average price of a gallon (3.80 liters) of gasoline stood at US$ 3.76 on Monday, according to the AAA automobile association.