This week, President Joe Biden fired another shot across the bow of Big Oil, accusing it of reaping a “windfall of conflict” that generated record profits while raising petrol and home heating prices and increasing inflationary pressures.
Biden vowed to ask Congress to impose taxes on oil firms unless they used their earnings to boost production and cut total retail costs in remarks to reporters at the White House late Monday.
“My team will collaborate with Congress to examine these possibilities accessible to us and others,” Biden stated. “It’s time for these corporations to stop profiting from war, meet their responsibilities in this country, and give the American people a break while still doing extremely well.”
“If they don’t, they’ll face a harsher tax on their surplus profits, as well as other constraints,” he warned.
Biden’s remarks come only hours before British oil major BP Plc reported another record set of third-quarter profits. BP, which gained approximately $8.15 billion from the continuous rise in crude and gas prices, increased its dividend by 10% and pledged to increase its share buyback plans by approximately $10 billion.
However, BP has stated that it will pay approximately $800 million to fulfill a so-called “windfall tax” on the company’s North Sea operations.
The 25% levy, which was implemented in the United Kingdom earlier this year, could be extended until 2023 at a higher rate of 30%, according to plans apparently being developed by new Finance Minister Jeremy Hunt.
Saudi Aramco reported net profits of $42.4 billion for the three months ending in September, a near 40% increase over the same period last year, and signaled that low carbon pivots will not threaten its bottom line anytime soon.
“While global crude prices were impacted by prolonged economic uncertainties during this period,” said Aramco CEO Amin Nasser, “our long-term view is that oil consumption will continue to expand for the rest of the decade given the world’s need for more affordable and reliable energy.”
Exxon Mobil (XOM) and its smaller rival Chevron (CVX) reported combined net income of just over $31 billion for the three months ending in September, bringing their nine-month total to around $72.4 billion – a figure that still falls far short of Apple’s (AAPL) and Microsoft’s (MSFT) combined net income of $116.2 billion (MSFT)
Over the same time span, the two largest technology businesses