President Joe Biden took aim at oil companies on Monday, accusing them of profiting from Russia’s invasion of Ukraine while threatening to tax excess oil profits if companies do not bolster production in the United States.
“Oil companies’ record profits today are not because they’re doing something new or innovative,” Biden said. “Their profits are a windfall of war—the windfall from the brutal conflict that’s ravaging Ukraine and hurting tens of millions of people around the globe. You know, at a time of war, any company receiving historic windfall profits like this has a responsibility to act beyond their narrow self-interest of its executives and shareholders.”
The president went on to state that oil companies “have a responsibility to act in the interest of their consumers, their community, and their country” and should invest in America by increasing production and refining capacity.
Biden then threatened to impose a windfall tax on the industry if it did not move to lower costs for consumers.
“If they don’t, they’re going to pay a higher tax on their excess profits and face other restrictions,” Biden said. My team will work with Congress to look at these options that are available to us and others. It’s time for these companies to stop war profiteering, meet their responsibilities to this country, and give the American people a break and still do very well.”
Oil Giants Post Record Profits
Biden reiterated his comments on Twitter later on Monday, stating that the oil industry “has a choice,” and can either bring costs down at the pump for consumers while also boosting production and refining capacity or “pay a higher tax on your excessive profits and face other restrictions.”Energy prices have soared since the start of 2021, with gas prices rising further following post-pandemic demand and Russia’s invasion of Ukraine in February along with subsequent sanctions from the West on Moscow.
Biden has repeatedly blamed the hefty prices at the pump on Russian President Vladimir Putin, or what he calls “Putin’s price hike” while also taking aim at the oil industry.
Biden’s threat of a windfall tax on the oil industry comes shortly after U.S. oil giants ExxonMobil and Chevron announced record profits.
All three companies cited a surge in oil and natural gas prices this year as a reason for their bumper profits.
