Biden Urges Energy Companies to Raise Output

Joe Biden on Monday accused large energy companies of profiteering from rises in oil and gas prices and urged companies to increase output.

• Biden called on large energy companies to increase output to lower prices.
• US Gasoline prices reached record-highs in June and have since then remained well above the 5-year average.
• “If they don’t, they’re going to pay a higher tax on their excess profits and face other restrictions,” Biden said.
• The president warned to call on Congress to consider tax penalties, windfall taxes, for oil and gas companies accruing record profits.
• Biden’s remarks were a result of sharp increases in profits by US energy companies Exxon Mobil Corp and Shell.
• News outlets had warned of a windfall tax announcement ahead of Bidens speech, citing sources close to the administration but they have so far failed to materialise.
• In signs of the detriment of windfall taxes, Repsol announced last week that they would focus new investments in North America to avoid the legislation in Europe. Other major oil companies are understood to be considering their options.