Biden, Chevron chief trade sharp words over gas prices

Jun 21, 2022, 2:36 PM | Updated: Jun 22, 2022, 7:20 am

WASHINGTON (AP) — In a pointed back and forth, the head of Chevron complained Tuesday that President Joe Biden has vilified energy firms at a time when gasoline prices are at near record levels and the president responded that the oil company CEO was being “mildly sensitive.”

The president in recent weeks has criticized oil producers and refiners for maximizing profits and making “more money than God,” rather than increasing production in response to higher prices as the economy recovers from the pandemic and feels the effects of Russia’s invasion of Ukraine.

Michael Wirth, chairman and CEO of Chevron, sent Biden a letter via email on Tuesday that said the president’s own words have been self-defeating in terms of encouraging companies to boost their output.

Chevron is investing in more production, Wirth wrote, but “your Administration has largely sought to criticize, and at times vilify, our industry. These actions are not beneficial to meeting the challenges we face and are not what the American people deserve.”

The oil company CEO said he wanted a more cooperative relationship with the government.

“Let’s work together,” Wirth wrote. “The American people rightly expect our country’s leaders and industry to address the challenges they are facing in a serious and resolute manner.”

Asked about those comments, Biden displayed no sympathy.

“He’s mildly sensitive,” Biden said. “I didn’t know they’d get their feelings hurt that quickly. Look, we need more refining capacity. This idea that they don’t have oil to drill and to bring up is simply not true.”

Average gas prices are nearly $5 a gallon nationwide, a strain on commuters and a political albatross for Biden’s fellow Democrats going into the midterm elections. That has left the White House scrambling for solutions, including a possible suspension of the 18.4 cents a gallon federal gas tax .Biden plans to decide by the end of the week if the tax should be suspended, a move meant to relieve price pressures and that would need approval from a reluctant Congress.

The gas tax funds highways, but Biden said Tuesday any lost revenue would not have a major impact on road construction because of last year’s $1 trillion infrastructure law.

The clash between the Biden administration and oil producers and refiners unfolded ahead of a Thursday meeting that Energy Secretary Jennifer Granholm will hold with energy companies.

Both House Speaker Nancy Pelosi and Senate Republican Leader Mitch McConnell have previously voiced skepticism about the benefits of suspending the gas tax. But Rep. Adam Schiff, D-Calif., is sponsoring a bill that would put the gas tax on hold through the end of 2023.

Schiff said in a statement that he has been in touch with the White House to encourage the gas tax holiday, adding, “But we shouldn’t stop there. We should also hold Big Oil accountable for the price-gouging that is driving prices up in the first place.”

The House has approved legislation to crack down on alleged price gouging by oil companies, but the bill has stalled in the Senate. Democratic proposals to impose a “windfall profits” tax on oil producers have generated little support in Congress.

The possibility of a gas tax holiday has drawn criticism from economists and the business community for not fixing the underlying supply challenges.

In an address Tuesday at the Economic Club of New York, a non-profit, non-partisan business group, Target CEO Brian Cornell called the gas tax holiday a temporary “mini stimulus” that does nothing to fundamentally change the supply and demand curve for fuel and transportation.

“We have a classic supply-and-demand challenge,” Cornell told the audience. “In all due respect, the gas holiday is only going to fuel demand. It’s doing nothing to increase the supply.”

Harvard University professor Jason Furman, formerly the top economist in the Obama White House, said a gas tax suspension would not address the supply pressures.

“Refineries are even more constrained now so supply is nearly fully inelastic,” he wrote on Twitter. “Most of the 18.4 cent reduction would be pocketed by industry — with maybe a few cents passed on to consumers.”

White House press secretary Karine Jean-Pierre told reporters that the administration is looking into as many ways as possible to provide consumers with some relief at the gas pump. But the administration does not plan to tell Americans to drive less during the July 4 holiday and reduce some of the supply pressures.

“Americans are going to do what they feel is right for themselves and for their family,” Jean-Pierre said. “That’s not something for us to make a judgment on.”

___

AP reporters Matthew Daly in Washington and Anne D’Innocenzio in New York contributed to this report.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Police officers stand outside a Target store as a group of people protest across the street,...

Associated Press

Pride becomes a minefield for big companies, but many continue their support

Many big companies, including Target and Bud Light's parent, are still backing Pride events in June despite the minefield that the monthlong celebration has become for some of them.

2 days ago

FILE - Then-Democratic presidential candidate Joe Biden plays music on a phone as he arrives to spe...

Associated Press

Biden, looking to shore up Hispanic support, faces pressure to get 2024 outreach details right

Joe Biden vowed in 2020 to work “like the devil” to energize Hispanic voters, and flew to Florida seven weeks before Election Day to do just that.

2 days ago

Editorial members of the Austin American-Statesman's Austin NewsGuild picket along the Congress Ave...

Associated Press

Correction: US-Gannett Walkout story

Journalists at two dozen local newspapers across the U.S. walked off the job Monday to demand an end to painful cost-cutting measures and a change of leadership at Gannett, the country's biggest newspaper chain.

2 days ago

FILE - The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of...

Associated Press

Saudi Arabia reducing global oil supply, could spell higher prices for US drivers

Saudi Arabia will reduce how much oil it sends to the global economy, taking a unilateral step to prop up the sagging price of crude.

3 days ago

This photo provided by Robert Wilkes, owner of a house boat management company, shows smoke rising ...

Associated Press

Houseboats catch fire while docked at Wahweap Marina on Lake Powell

More than half a dozen house boats momentarily caught fire at a popular boating destination on the Utah-Arizona line on Friday.

5 days ago

File - Women work in a restaurant kitchen in Chicago, Thursday, March 23, 2023. On Friday, the U.S....

Associated Press

US hiring, unemployment jump in May and what that says about the economy

The nation’s employers stepped up their hiring in May, adding a robust 339,000 jobs, well above expectations.

5 days ago

Sponsored Articles

...

SANDERSON FORD

Thank you to Al McCoy for 51 years as voice of the Phoenix Suns

Sanderson Ford wants to share its thanks to Al McCoy for the impact he made in the Valley for more than a half-decade.

(Photo: OCD & Anxiety Treatment Center)...

OCD & Anxiety Treatment Center

Here’s what you need to know about OCD and where to find help

It's fair to say that most people know what obsessive-compulsive spectrum disorders generally are, but there's a lot more information than meets the eye about a mental health diagnosis that affects about one in every 100 adults in the United States.

(Photo by Michael Matthey/picture alliance via Getty Images)...

Cox Communications

Valley Boys & Girls Club uses esports to help kids make healthy choices

KTAR’s Community Spotlight focuses on the Boys & Girls Club of the Valley and the work to incorporate esports into children's lives.

Biden, Chevron chief trade sharp words over gas prices