Joe Biden slams Big Oil over profits: ‘Exxon made more money than God this year’
- US consumer inflation accelerated in May as petrol prices hit a record high and the cost of food soared
- Biden issued a warning to the oil sector, whose profits have jumped with oil and gas prices, pointing to the gains as evidence consumers are paying for more than higher labour and shipping costs
US consumer inflation accelerated in May as petrol prices hit a record high and the cost of food soared, leading to the largest annual increase in four decades. A gallon of regular petrol cost an average US$5.00 nationwide on Saturday, according to motorist group AAA.
Biden, who came into office vowing to reduce US dependence on fossil fuels, said on Friday he was hoping to speed up oil production, which is expected to hit record highs in the United States next year.
But he also issued a warning to the industry, whose profits have jumped with oil and gas prices, pointing to the gains as evidence consumers are paying for more than higher labour and shipping costs.
“Exxon made more money than God this year,” Biden told reporters following a speech to dockworker union representatives at the Port of Los Angeles. US oil companies are not using higher profits to drill more but to buy back stock, he added.
Share buy-backs improve earnings per share by reducing the number of shares outstanding, indirectly helping to boost share prices. Companies see buy-backs as a way to reward investors.
“Why aren’t they drilling? Because they make more money not producing more oil,” Biden said. “Exxon, start investing and start paying your taxes.”