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Biden is targeting oil companies as inflation rises

US President Joe Biden said his government was doing everything in its power to tackle inflation and blamed rising oil and shipping prices, with new data showing that consumer prices had reached a four-decade high.

In a speech at the Port of Los Angeles on Friday, Biden said that oil companies were deliberately not increasing production to keep prices high.

He said oil companies had “9,000 licenses to drill. They are not drilling. Why are they not drilling? “

“Because they make money by not producing more oil,” he said.

Asked about Exxon’s profits, Biden said: “Exxon made more money than God this year.

The president also criticized oil companies for spending billions on buying back shares in their own companies and said that this should be taxed.

Exxon has denied some of the allegations.

Brian Deese, Biden’s chief financial officer, met with exxon and Chevron executives this week at the request of the companies, two people familiar with the matter told CNBC. The discussions included prices, production and market conditions.

Exxon also said it expects a 50% increase in capital expenditures in the Permian oil-rich region by 2022 compared to 2021 and is increasing the refining capacity for US light crude oil to process about 250,000 barrels more per day, CNBC said.

Figures from the Directorate of Labor on Friday showed that consumer prices rose by 8.6% in May from the previous year. Gas costs increased by almost 50% in one year and groceries rose by almost 12% during that time, which is the largest increase of this kind since 1979.

Biden said on Friday that major Asian shipping companies had raised their prices by up to 1,000%. He urged the parliament to consider taking action against them.

The president also reiterated his view that inflation was due in part to Russian President Vladimir Putin’s war in Ukraine.

“We have never seen anything like Putin’s taxes on both food and gas,” he said.

Biden announced his government’s efforts to transport cargo in and out of the Port of Los Angeles, which faced heavy bottlenecks last year. However, while the number of ships waiting to arrive at the port for a long time has decreased by 40%, according to the White House, inflation has not decreased.

The president is facing criticism from Republican lawmakers over his inability to prevent prices from rising and is seeing declining voter support. Two-thirds of Americans disagree with Biden’s treatment of the economy, according to a survey by the Associated Press and the NORC Center for Public Research in May.

The president said on Monday that the whole world was facing rising inflation and said: “America can deal with inflation from a strong position. He pointed out that the country had a strong labor market and unemployment close to an all-time low.

In his speech on Friday, Biden also addressed the attack on the US capital on January 6 after the first televised parliamentary report on Thursday night on the attack.

Although Biden did not watch the interrogation, he said the attack was “one of the darkest chapters in the history of our nation,” and said it was important for the American public to understand what really happened. The interrogation is scheduled to continue next week.

Megan Duzor of VOA and the Associated Press contributed to this report.

Biden is targeting oil companies as inflation rises

Source link Biden is targeting oil companies as inflation rises

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