Almost immediately after Putin invaded Ukraine the price of gas at the pumps starting climbing. Last week President Biden cautioned big oil companies not take advantage of the war in Ukraine.
"American oil and gas companies should not exploit this moment to hike their prices to raise profits," Biden said.
This drew a response from American Petroleum Institute CEO Mike Sommers who insisted that US oil companies would not seek to capitalize on Russia's invasion of Ukraine. "Our companies would never take advantage of this kind of situation," according to Sommers. Sommers argued that US oil companies want to do what's best for consumers around the world. "My member companies are patriots," he said. "This is not a time to target one particular industry that has a proven record."
What a load of bull crap!
How can prices at the pump go up immediately? What about all the gasoline/diesel in storage tanks? Why wouldn't prices go up after the existing supply is used up?
I have a hard time accepting that big oil companies are "patriots", according to Sommers. President Biden was right on the mark when he cautioned them about taking advantage of the war in Ukraine to hike their already stunning profits.
For example, the largest oil and gas companies made a combined $174 billion in profits in the first nine months of 2021 as gasoline prices climbed in the US.
In the third quarter of 2021, 24 top oil and gas companies made more than $74 billion in net income. From January to September, the net income of the group, which includes Exxon, Chevron, Shell and BP, was $174 billion. Exxon alone reported a fourth-quarter profit of $8.87 billion, its largest in seven years.
The analysis of major oil companies’ financials shows that 11 of the group gave payouts to shareholders worth more than $36.5 billion collectively, while a dozen bought back $8 billion worth of stock.
Exxon, Chevron, Shell and BP were among group of 24 who resisted calls to increase production but doled out shareholder dividends.
Here's a suggestion big oil, if you truly want to be patriots, how about taking some of the hit like the rest of us in America by keeping gas prices lower. Oh wait. That isn't going to happen since that would cut into your meager profits, eh?!