U.S. President Joe Biden demanded oil refining companies explain why they are not putting more gasoline on the market, sharply escalating his rhetoric against industry as he faces pressure over rising prices.
Biden wrote to executives from Marathon Petroleum, Valero Energy and ExxonMobil and complained they had cut back on oil refining to pad their profits, according to a copy of the letter. Reuters reported the letter is also being sent to Phillips 66, Chevron, bp and Shell.
"At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable," Biden wrote in the letter, adding the lack of refining was driving gas prices up faster than oil prices.
“We are surprised and disappointed by the President’s letter," Chet Thompson, president and CEO for American Fuels & Petrochemical Manufacturers (AFPM) told BIC Magazine. "Our team at AFPM has been working closely with the administration—as recently as this week—providing industry insights and policy recommendations to address the global energy challenge."
"Any suggestion that U.S. refiners are not doing our part to bring stability to the market is false. We would encourage the Administration to look inward to better understand the role their policies and hostile rhetoric have played in the current environment," Thompson added.
Additionally, American Petroleum Institute (API) President and CEO Mike Sommers said “While we appreciate the opportunity to open increased dialogue with the White House, the administration’s misguided policy agenda shifting away from domestic oil and natural gas has compounded inflationary pressures and added headwinds to companies’ daily efforts to meet growing energy needs while reducing emissions.
"I reinforced in a letter to President Biden and his Cabinet yesterday ten meaningful policy actions to ultimately alleviate pain at the pump and strengthen national security, including approving critical energy infrastructure, increasing access to capital, holding energy lease sales, among other urgent priorities," said Sommers.
“Ahead of his travel to the Middle East next month, we urge the President to prioritize unlocking U.S. energy resources - that are the envy of the world - instead of increasing reliance on foreign sources,” he added.
