The letter from President Joe Biden to oil and gas companies was yet another endeavor by the White House to blame corporations for the present energy crisis.
Exxon Mobil, one of the numerous firms attacked by Biden, is not passively accepting these claims.
Exxon Mobil justified its efforts and highlighted its investments prior to and throughout the pandemic in a statement posted Wednesday afternoon.
“Over the past five years, we have invested $118 billion in additional oil and gas production, compared to $55 billion in net profits,” the statement added.
Even during the epidemic, when they lost more than $20 billion and then had to borrow more than $30 billion to sustain investment in preparation for post-pandemic demand, Exxon Mobile continued to invest.
Exxon comes out swinging! pic.twitter.com/NRMqgd3Ho0
— Eric Nuttall (@ericnuttall) June 15, 2022
Biden’s battle on domestic power generation is well known, from rescinding the Keystone XL authorization to erecting roadblocks for new pipelines in Appalachia.
Biden’s energy program does not include long-term expenditures on fossil-fuel technology, yet he wants firms to comply with his demands.
Exxon pointed out Biden’s shortcomings by advising the president on how he could assist domestic energy production.
Exxon advised the government to stimulate investment through clear and consistent policies that favor U.S. resource development, including frequent and scheduled lease sales, expedited regulatory approval, and support for the pipeline network.
Currently, refiners are not impeding supply. The average utilization rate for refinery capacity over the previous four weeks was 93.44 percent, as of last week.
Biden’s letter attempts to compare the oil sector before and after the epidemic; although worldwide refining capacity decreased by 730,000 barrels per day in 2021.
Exxon Mobil’s statement is “consistent and clear” because the company is aware of the global loss in refinery capacity.
As a result of previously closed facilities, refiners have limited capacity to boost output. However, he is also close to coming up with a solution to the dilemma.
"We're going to make sure everyone knows Exxon's profits. Exxon made more money than God last year"
In 2020 Exxon lost $22.4 billion Federal government made $25.8 billion on gas taxes (imagine how much Biden & Co raking in right now). pic.twitter.com/3ak7oMPhTo
— Charles V Payne (@cvpayne) June 10, 2022
Biden’s letter alludes to the use of executive action in response to the refinery problem.
White House press secretary Karine Jean-Pierre intimated the Defense Production Act could be used to restart closed refineries. She stated, “We’re arguing the president utilized it before and is willing to do so again.”
Exxon Mobil argues in its response that emergency measures can be used to help relieve refiners’ burdens. If Biden wishes to advance, he must collaborate with oil and gas companies to reopen these facilities.
Apparently, he has ruled out a long-term workaround, but there is still an opportunity to alleviate immediate pressures the United States and other world oil producers are experiencing.
Besides, letters denouncing corporate profits are an attempt to avoid office responsibilities by virtue signaling.
During a nationwide energy crisis, the community deserves solutions-oriented policymaking. Exxon Mobil advised Biden; it is now his responsibility to heed it.