Biden Is Threatening Oil Companies With Use of Emergency Powers Against Them – Opinion

Joe Biden has attempted to put the blame for skyrocketing gasoline prices on inflation, blaming everyone else. His most common excuse for the rise in gas prices has been that it is “Putin’s price hike” because of Russia’s invasion of Ukraine. But the gas prices were going up long before Putin invaded in February 2022 — they’ve been going up ever since Joe Biden came into office. They’ve doubled since Biden took office and J.P. Morgan analysts are predicting gas may be $6.00 a gallon by August. It’s over $5.00 now and the experts are predicting that it will continue to be a problem.

It’s not hard to understand why, given Biden’s attack on the fossil fuel industry. He promised the nation that he would eliminate fossil fuels during his campaign.

But now, Biden is trying to place the blame on another source — the oil companies. He’s written a letter to multiple oil companies including Marathon Petroleum Corp, Valero Energy Corp, ExxonMobil, Phillips 66, Chevron, BP, and Shell, blaming them in part for the high prices and taking profits.

The President of the United States writes an email to executives complaining (!!!) The industry has shut down too many refining capacities:

“At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable” (full letter via @axios ) #OOTT pic.twitter.com/rOv2ANxxGD

— Javier Blas (@JavierBlas) June 15, 2022

Imagine you would ever have someone in Biden’s position daring to tell private companies that passing along their expenses is “not acceptable.” We’re talking about the government trying to dictate the means of production. The upside is that he seems to finally accept the fact that prices are affected by a lack of refinery production.

While I am aware of many factors that contributed to my office’s decision to lower refinery capacity, I also understand the importance of these business decisions. However, in a wartime environment, margins of refinery profits that are significantly higher than normal and passed on directly to American families is unacceptable. [….]

My Administration will also use any Federal Government tool and authority that is reasonable or appropriate to expand refinery output and capacity in the short term, and ensure adequate supply to every part of this country. Already, I invoked emergency power to authorize use of Defense Production Act for reliable energy inputs. If necessary, I’m prepared to employ all available tools to eliminate barriers to supplying Americans with affordable, reliable energy.

Families are in a crisis and need to act immediately. My Administration and your companies must work together to find concrete solutions to the current crisis. This will ensure that the vital equities of workers in the energy sector and communities along the fence line are protected. The Secretary of Energy has been directed to call an emergency meeting and involve the National Petroleum Council on the matter. In advance of that, I request that you provide the Secretary with an explanation of any reduction in your refining capacity since 2020 and any ideas that would address the immediate inventory, price, and refining capacity issues in the coming months — including transportation measures to get refined product to market.

The lack of refining capacity — and resulting unprecedented refinery profit margins — are blunting the impact of the historic actions my Administration has taken to address Vladimir Putin’s Price Hike and are driving up costs for consumers. I appreciate your immediate attention to this issue and your efforts to mitigate the economic challenges that Vladimir Putin’s actions have created for American families.

Nevertheless, that’s a concerning threat. That’s a Mafia letter saying “Come across or we’re going to make you comply.”

Biden continues to blame them for the problem, even though he was responsible. He’s the one who was shutting down pipelines, stopping drilling, and canceling leases. His ally, Senator Ron Wyden (D.OR), has threatened a 21% surtax on oil profits. Why would business people increase their production in an environment that has made them enemy, where they are deemed the enemy of the government?

Biden talks about being in a “war” and the war affecting things. He’s right — except the war is the one he declared on the energy industry. He’s blaming the victims of his war. The purpose of this is to play to his leftist base who believe this lie that it’s because of gouging oil companies. They don’t ask why these oil companies weren’t gouging us all under Trump? But that’s what this letter is about — to say, “See? I threatened them with a strongly worded letter.”

What would they do if they put in a surtax? As a result, prices would rise and everything will get worse. This would reduce the supply of companies as no one would be willing to make products under such a threat from the government. That isn’t the way our constitutional republic is supposed to work.

Biden should retract all of his previous attacks, and adopt a sensible policy so American companies can have stability on the markets. He wants to be a dictator, and his latest letter shows that.