(C) Common Dreams
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Biden Accuses Oil Companies of ‘War Profiteering’ and Threatens Windfall Tax [1]
['Peter Baker', 'Clifford Krauss']
Date: 2022-10-31
Mr. Biden’s statement came just days after the oil giants reported another three months of flush coffers. Exxon Mobil brought in a record of nearly $20 billion in profits for the third quarter of the year, 10 percent higher than the previous quarter and its fourth consecutive quarter of robust earnings. Chevron reported $11.2 billion in profits, just below the record it set the quarter before. The European-based Shell and Total Energies companies similarly reported that profits more than doubled from the same period a year ago.
The five biggest oil companies generated more than $50 billion in profits in the second quarter, and the International Energy Agency has reported that total net income for the world’s oil and gas producers will double this year from last to a record $4 trillion. “Today’s high fossil fuel prices have generated an unprecedented windfall for producers,” the agency said.
A half-dozen of the largest firms earned more in profit over the past six months than in all of last year and more than two and a half times what they earned in the same quarters of 2021, White House officials said. Mr. Biden said if the industry simply earned the same level of profits it has for 20 years, consumers would pay 50 cents less per gallon.
The firms have used their profits in some cases for dividend increases and stock buybacks rather than increased production, which could bring down the price of oil and therefore trim their profits. Exxon Mobil raised its dividend on Friday, citing a commitment to “return excess cash” to shareholders.
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Mr. Biden has been sensitive to gas prices, an important barometer for the public mood. As the price at the pump hit record highs over the summer, the president’s approval rating slid to new lows, but as gas costs came down over the following three months, his own numbers improved. Likewise, according to polls, the rise and fall of gas prices is directly inverse to public feelings about whether the country is heading down the right or wrong track.
Ron Klain, the White House chief of staff, is so attentive to the fluctuations that he checks the average price every day and often posts messages on Twitter pointing out when it dips further.
“If you are filling your gas tank this weekend, you are seeing one of the cheapest Saturdays of the year,” Mr. Klain tweeted on Saturday. “Gas prices continue to drop nationally,” he added on Monday morning.
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[1] Url:
https://www.nytimes.com/2022/10/31/us/politics/biden-oil-windfall-tax.html
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