Biden has been critical of oil and gas firms for making large profits in the wake of a jump in the price of petroleum as a direct result of Russia’s invasion of Ukraine.
In a speech given before the midterm elections on November 8, Joe Biden issued a warning that major oil firms might be subject to a windfall tax if they do not spend part of their earnings toward reducing prices for American consumers.
The earnings that the American competitor’s Chevron & ExxonMobil have recorded for this year are somewhere in the neighborhood of $70 billion. This is an almost threefold increase from 2021.
Biden said on Monday that the record earnings were a “windfall from the horrible war that is devouring Ukraine and killing hundreds of thousands of people throughout the world.” Biden made this statement.
“It’s time for these corporations to cease profiteering, meet their obligations in this nation, and give the American citizens a break yet still do very well,” he added. “It’s time to stop warfare profiteering, fulfill their obligations in this country, and provide the American people a break.”
In addition, the president issued a stern warning to businesses, stating that they may be subject to “a greater tax on their surplus earnings and face additional limitations.”
The statements made by Vice President Joe Biden one week before the midterm elections have been seen as an effort to engage voters who have been confronted with continuously rising inflation.
Rosiland Jordan, reporting for Al Jazeera from Washington, DC, stated that “Republicans have always been able to gain inroads with voting public this year due to the surge in power prices, notably in the cost of gasoline after the attack of Ukraine by Russia.” Rosiland Jordan’s statement was made in response to the question of why Republicans have only been able to make headway with voters this year.
According to data provided by the American Automobile Association, the national average price of a gallon of gasoline exceeded $4.80 in the month of July. After the Biden administration removed 180 barrels per day ( BPD from the World’s Largest Oil Reserve earlier this year, it has subsequently dropped to an average of $3.76.
According to Jordan, “because the Biden leadership knows that Americans regard the cost of petroleum as a portent of how they’re doing all in all economically, this served as an occasion for the leader of the free world to come out again on Monday and have said to the voting public that he was still working this problem” (because the administration is aware that Americans view the gas price as a harbinger of how they’re doing overall economically).