Tensions grow between the White House and the oil companies

Benefiting from the tightening of the oil market and the increase in prices due to the war between Russia and Ukraine, the companies continued to increase their profits in the third quarter of this year. Although the increase in prices negatively affected inflation with the effect of not limiting high profits, oil companies became the target of US President Joe Biden.

US oil producers made more than $200 billion in total profits and reaped huge profits from a period of geopolitical turmoil that rattled the global energy market and pushed up prices due to the Russian-Ukrainian war.

PROFIT OF $200 BILLION IN 6 MONTHS

According to earnings reports prepared by S&P Global Commodities Research for the Financial Times, the total net profit of publicly traded oil and gas companies operating in the US reached $200.24 billion in the second and third quarter of the year.

For example, US oil giant ExxonMobil tripled its third-quarter profit, breaking a record, while Chevron increased its third-quarter profit by 84 percent year-on-year. In addition to US companies, European oil giants also posted record profits.

French Total’s third-quarter profit doubled to $9.9 billion year-on-year, while Shell’s profit doubled year-on-year to $9.45 billion in the same period. BP, for its part, recorded a profit of 8,150 million in the third quarter, above expectations, supported by natural gas trading operations.

Record profits were also shown in the third quarter. Although oil prices partially fell compared to the second quarter, the international energy giants managed to multiply their profits. However, this situation further escalated the tension between the White House and the companies.

ADDITIONAL TAX SIGN

US President Joe Biden described the huge profits announced this week as “an unexpected result of the war” and accused companies of profiting from the war between Russia and Ukraine. Biden argued that businesses should pay higher taxes.

Abdullah Hasan, a White House spokesman, noted that additional new regulations could be introduced, saying: “We will do whatever it takes to support families.”

THE WHITE HOUSE AND THE COMPANIES CAME AGAINST

The increase in gasoline prices fueled inflation by increasing the prices of many products, especially logistics costs, and this situation brought the oil industry and the White House face to face in recent months.

Biden, who put gas tax cuts on the agenda to lower prices, accused oil companies of taking advantage of supply shortages to boost profits. Biden said: “Exxon has earned a lot of money from God this year. “American oil companies used their profits not to drill more, but to buy back shares,” he said.