Biden implores US oil companies to pass on record profits to consumers

theguardian.com:

Joe Biden has called on oil companies to pass on their massive profits to consumers as he announced the release of 15m barrels of oil from the US strategic petroleum reserve.

Biden is fighting to keep gas prices in check ahead of November’s midterms. He blamed Vladimir Putin’s invasion of Ukraine for the global spike in oil prices and said his administration was doing all it could to keep prices in check.

“Gas prices have fallen every day in the last week,” said Biden. “That’s progress, but they’re not falling fast enough. Gas prices are felt in almost every family in this country. That’s why I’ve been doing everything in my power to reduce gas prices.”

He called on US oil companies to help. In the second quarter of 2022, the six largest US oil companies reported profits of $70bn, said Biden.

“So far, American oil companies are using that windfall to buy back their own stock, passing that money on to shareholders, not consumers,” he said. “My message to all companies is this: you’re sitting on record profits. And we’re giving you more certainty. You can act now to increase oil production. You should not be using your profits to buy back stock or for dividends – not while the war is raging.”

The announcement of the latest oil release speeds up the sale of the last of the 180m barrels that Biden announced in March would be sold. The announcement comes after the oil-producing Opec+ nations said they would cut oil production, driving up prices, in a move that angered White House officials.

Established in 1975 to help mitigate shocks in US oil supply, the strategic petroleum reserve (SPR) is thought to be the largest emergency supply in the world. Stored in underground tanks in Louisiana and Texas, the SPR has capacity for 714m