His comments come days after oil and gas producers including ExxonMobil and Chevron reported huge profits and about a week before crucial midterm elections in which the price of gasoline has put fellow Democrats on the defensive. “In a time of war, any company that receives historical windfalls like this has a responsibility to act beyond the narrow self-interest of its executives and shareholders,” Biden said Monday night. “They have an opportunity to do that by lowering prices for consumers at the pump. If they don’t, they will pay higher tax on their excess profits and face other restrictions.” Exxon, the largest US oil company, reported a record quarterly net profit of nearly $20 billion on Friday. Rival Chevron earned $11.2 billion, short of the previous quarter’s record profits. “Their profits are a windfall of war — a windfall from the brutal conflict that is ravaging Ukraine and affecting tens of millions of people around the world,” Biden said. The president said his administration would work with Congress to shape possible policy responses. “It’s time for these companies to stop war profiteering, live up to their responsibilities to this country, give the American people a break and get on with it.” Biden has repeatedly called on producers to use their profits to invest in boosting production. But Wall Street pressured oil companies to return cash to shareholders. U.S. gasoline prices hit record highs of more than $5 a gallon this summer. They have since declined but remain more than 60 percent higher than when Biden took office amid strong oil consumption and global supply constraints. High prices at the pump have become a political liability for Democrats ahead of next week’s midterm elections, where the president’s party risks losing control of both houses of Congress. Any legislation to impose new taxes on the oil industry faces little chance, especially in the closely divided Senate. Democratic lawmakers have previously floated the idea of a windfall tax on oil company profits, an idea that has received a cold reception from the oil industry. Recommended The American Petroleum Institute lobby group described the president’s remarks as “campaign rhetoric” and said any tax increases could backfire. “Oil companies don’t set prices — global commodity markets do,” said Mike Sommers, managing director of the American Petroleum Institute. “Raising taxes on American energy discourages investment in new generation, which is exactly the opposite of what is needed.” Exxon Chief Executive Darren Woods said on Friday: “There have been discussions in the US about our industry returning some of our profits directly to the American people. In fact, that’s exactly what we’re doing in the form of the quarterly dividend.” The government has taken steps to lower fuel prices, including record announcements from the US Strategic Petroleum Reserve. Biden said a plan to replenish the stock at $67-$72 a barrel would put a floor below prices and give oil companies the confidence to drill more.
