Oil Industry Responds to Biden’s Price-gouging Accusations

Despite Biden’s call to U.S. refiners to lower gasoline prices, the administration’s unfavorable policy has restricted the oil and gas industry and, given the current challenges, makes ramping up production impossible, analysts told Hart Energy.

Oil Industry Responds to Biden’s Price-gouging Accusations

After last week’s claim that Exxon Mobil made “more money than God,” President Biden has now threatened to take action against U.S. refiners if they don’t boost production. (Source: YASAMIN JAFARI TEHRANI / Shutterstock.com)

American trade associations and U.S. oil major Exxon Mobil Corp. spoke in their defense after President Joe Biden continued to blame Big Oil for not increasing supply despite earning record profits.

“Today’s situation did not materialize overnight and will not be quickly solved,” according to the heads of American Petroleum Institute (API) and American Fuel & Petrochemical Manufacturers (AFPM).

In a joint letter to Biden, API’s Mike Sommers and AFPM’s Chet Thompson, who serve as president and CEO of their respective organizations, noted that oil and gas companies are not to blame for higher pump prices. Instead, they attributed high prices to a supply/demand imbalance, strong consumer demand and the ban on Russian products.

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Faiza Rizvi

Faiza Rizvi is a senior editor of ESG for Hart Energy's editorial department, with a strong focus on E&P Plus and HartEnergy.com. She has been covering all facets of the U.S. and international energy industry for over 5 years.