Big Oil Raked in Record Profits at the Expense of Working Families While Hiking Prices at the Pump
FOR IMMEDIATE RELEASE: July 29, 2022
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BIG OIL RAKED IN RECORD PROFITS AT THE EXPENSE OF WORKING FAMILIES WHILE HIKING PRICES AT THE PUMP
AP: Unprecedented profit for major oil drillers as prices soared
Reuters: Shell smashes record again with $11.5 bln profit
New York Times: Exxon and Chevron Report Record Profits on High Oil and Gas Prices
WASHINGTON, D.C. — This week, Americans got a look behind the curtain at the result of Big Oil’s price gouging: new earnings reports show that these companies have been raking in record profits for themselves while working and middle class Americans feel the pain at the pump. While President Biden is using every tool at his disposal to lower the price of oil and provide relief to consumers in the wake of the pandemic and Putin’s invasion of Ukraine, Big Oil has been capitalizing on these global crises at the expense of everyday Americans.
Today, the average price of oil is the same as it was in early August 2014 – but gas prices are, on average, over 80 cents/gallon higher now than they were then. President Biden has directed his administration to investigate Big Oil companies for this price gouging, and continues to fight to bring down costs across the board for working families. 203 House Republicans, on the other hand, voted against legislation to prevent Big Oil from price gouging and hold them accountable. They’d rather enable these big corporations, protecting their profits instead of fighting on behalf of working Americans. President Biden is working to lower gas prices — and even in spite of Big Oil’s price gouging, we’ve seen prices falling over the past 40 days.
“These earnings reports underscore yet again the true cost of corporate greed and the harm it causes American families,” said Building Back Together Executive Director Danielle Melfi. “President Biden knows how important lowering gas prices is for working Americans, which is why tackling inflation is his top domestic priority. He’s been consistent in calling on Big Oil to give consumers a break and will continue to fight for his agenda to lower the cost of essentials families rely on – even in the face of MAGA opposition.”
President Biden has taken significant actions to bring down the price of oil, including:
- Releasing one million barrels of oil from the Strategic Petroleum Reserve every day for six months – a historic move to lower prices that prevented up to 40-cent increases at the pump.
- Working with international partners to release a further 240 million barrels of oil to bring down prices on the global market.
- Expanding access to biofuels like E15 to increase supply and lower prices at thousands of gas stations nationwide.
- Calling on Congress to suspend the federal gas tax.
- Prioritizing our transition to affordable clean energy to make us less reliant on foreign oil.
- While gas prices have dropped significantly, they have not dropped as quickly as oil prices.
- Today, the average price of oil is the same as it was in early August 2014, – but gas prices are, on average, 82 cents higher now than they were in early August 2014.
- And while consumers are paying higher prices at the pump, this week’s profit reports, including from Shell, Exxon, and Chevron, show Big Oil is reaping the benefits of lower oil prices without passing on savings to consumers.
- President Biden has taken steps to investigate this price-gouging and called on oil companies to pass on their savings to consumers.