WASHINGTON (AP) – The Chevron chief complained Tuesday that President Joe Biden insulted energy companies at a time when gasoline prices were about to rise, to which the president replied that he was the CEO of an oil company. Sensitive. “
The president has criticized oil producers and refineries in recent weeks for maximizing revenue and making “more money than the Lord” in response to rising prices in response to rising prices as the economy recovered from a pandemic and suffered the effects of Russia’s invasion of Ukraine.
Michael Wirth, president and CEO of Chevron, emailed Biden on Tuesday stating that the president’s own words were counterproductive in terms of encouraging companies to increase their productivity.
Chevron is investing more in manufacturing, Wirt wrote, but “your administration has primarily tried to criticize and sometimes insult our industry. These actions are not profitable for addressing the challenges we face and it is not what the American citizen deserves.
The chief executive of the oil company said he wanted more cooperation with the government.
“We work together,” Wirth wrote. “American citizens rightly expect that our nation’s leaders and industry will take these challenges seriously and surely.”
When asked about these comments, Biden expressed no sympathy.
“It’s slightly sensitive,” Biden said. “I didn’t know that their feelings would be affected so quickly. You see, we need more mastering skills. “The idea that they don’t have oil to drill and export is not true.”
The average gas price is about $ 5 per gallon nationwide, which is a stress for passengers and a political albatross for Biden’s fellow Democrats in dealing with the by-election. This prompted the White House to seek solutions, including a possible federal tax suspension of 18.4 cents per gallon per gallon. Biden expects to decide by the end of the week to suspend the tax, a move aimed at reducing price pressures and would require the approval of a reluctant Congress.
The gas bill funded the freeways, but Biden said Tuesday that any loss of revenue would not have a significant impact on road construction because of the $ 1 trillion infrastructure law last year.
The clash between the Biden administration and oil producers and refineries came ahead of a meeting on Thursday with Energy Secretary Jennifer Granholm along with energy companies.
Both House Speaker Nancy Pelosi and Republican Senate Leader Mitch McConnell have previously expressed skepticism about the benefits of gas tax cuts. But California Rep. Adam Schiff is funding a bill that would suspend gas charges by the end of 2023.
Schiff said in a statement that he contacted the White House to encourage a gas tax exemption, adding, “But we don’t have to stop. We also owe it to Big Oil for raising prices, which in the first place is driving prices higher “.
The House passed legislation that would raise the price expected by oil companies, but suspended the bill in the Senate. Democratic proposals to impose a “windfall profit” tax on oil producers have garnered little support in Congress.
The possibility of gas tax exemption has garnered criticism from economists and the business community for failing to address key supply challenges.
Speaking to the New York Economic Club, a non-profit business group, Brian Cornell, CEO of Target, called the gas tax exemption a temporary “mini-incentive” that makes no changes to the demand and demand curve. . ‘offer. fuel and transportation.
“We have a classic challenge between supply and demand,” Cornell told the audience. “In all due respect, the gas holiday is about fuel demand. It does nothing to increase the offer”.
Harvard University professor Jason Furman, Obama’s former chief economist at the White House, said the gas tax cuts would not address supply pressures.
“Processing facilities are more limited now, so supply is almost completely inelastic,” he tweeted. “Most of the 18.4 cent cut will take the industry out of pocket, maybe a few cents will be passed on to consumers.”
White House spokeswoman Carine Jean-Pierre told reporters that the administration is looking at as many ways as possible to provide some relief to gas pump consumers. But the administration has no plans to tell Americans to drive less during the July 4 holiday and reduce pressure on deliveries.
“Americans will do what they think is right for themselves and their families,” Jean-Pierre said. “It’s not our fault”.
The report was co-authored by AP reporter Matthew Dalim in Washington and Ann D’Inocentio in New York.
Source: Huffpost
