US President Joe Biden on Friday criticized oil company ExxonMobil for not producing more gasoline, as fuel prices hurt Americans’ pockets and the president’s popularity wanes.
“Exxon made more money than God this year,” Biden said, in advocating a tax increase on oil companies.
ExxonMobil said it made massive profits in the first quarter of the year, a product of rising oil prices after Russia’s invasion of Ukraine and despite declining volumes of oil and natural gas.
Oil companies “have 9,000 licenses to drill the land. They’re not drilling. Why aren’t they extracting? Because they make more money by producing less oil,” Biden said during a conference at the Port of Los Angeles, hours after the government reported inflation. rampant spurred by energy prices.
In addition, through higher profits, “they are buying back their own shares, which frankly should be taxed. They are buying back their shares without making new investments,” he said.
After a terrible 2020, marked by confinements by Covid-19, oil companies returned to profit in 2021, which skyrocketed this year.
ExxonMobil doubled its profits during the first quarter to US$5.5 billion, approximately R$27 billion, and its revenues increased 52.4% to US$87.7 billion, approximately R$437 billion.
The oil giant also increased its share buyback spending by $20 billion. Although it plans to increase capital spending in 2022, ExxonMobil has ruled out additional investment.
Biden’s popularity plummets as the United States experiences the highest inflation in four decades and a rise in gasoline prices.
Data released by the government on Friday shows that the consumer price index rose to 8.6% compared to May 2021 and was above the 8.3% recorded in April. The data even surpassed the March index, estimated by economists as the inflationary peak.
Energy prices rose 34.6% in one year and gasoline prices doubled, up 106.7%, the biggest increase since 1935, when the consumer price index was first recorded.
Oil prices remained above $100 a barrel after hitting $130 in March following the Russian invasion of Ukraine.
American motorists are facing a new record in gas prices. The average cost of fuel per gallon was $4.99 as of Friday, according to the American Automobile Association (AAA).
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