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 "Every tax hike on big business is
a tax hike on the people. To business, taxes are an operating expense and all
costs of doing business are passed on to the consumer."- U.S. Sen. Marko Rubio
(R-FL)
Since the Industrial Revolution, the key ingredient needed to sustain a world
super power is energy. It was fossil fuels that carried the allies to victory in
two Great Wars and nuclear energy that helped maintain world peace for over 75
years. Since 1900, every U.S. president has supported America's energy producers
because they were cognizant it takes energy to grease the wheels of democracy.
When Joe Biden entered office, he inherited a nation that was
energy independent. But instead of protecting it, his first day in office he
began dismantling it. By canceling federal drilling permits and the Keystone
Pipeline, he made the U.S. energy dependent overnight. This not only weakened
our security but it tripled prices at the pump. He is begging OPEC for oil out
of fear of being drowned in a red wave.
Biden's progressive mentor Barack Obama's energy policy was, "all-of-the-above
energy," oil, gas, and renewables. Donald Trump, George W. Bush, Bill Clinton
and even Jimmy Carter all realized the political consequences of voters feeling
pain at the pump due to bad energy policy.
"I refuse to allow OPEC, or anyone else to hold America hostage in foreign
energy markets." – Donald Trump
Biden doesn't understand basic economics. Both oil and gasoline prices increased
each time Biden released oil from the Strategic Petroleum Reserve. The market
realized he'd have to refill the tanks at a much higher price. Gas is still
twice as much as it was when Donald Trump was in office.
Biden has been blaming U.S. oil producers for the high price of gasoline instead
of his orders to cancel drilling permits and Keystone. He has accused oil
companies of price gouging since Russia invaded Ukraine.
"Big oil is taking advantage of American drivers because of the war." – Joe
Biden
The American Petroleum Institute, the oil industry’s lobbyists, said that
Biden’s price gouging accusations were “outrageous and bogus.” They denounced
Biden's threat of new taxes as voter “pandering.” If this were to happen, it
would disincentivize new production needed to sustain prices.
API President and CEO Mike Sommers said “Biden is repeating the
same assertions he has been making for two years. He has proposed raising taxes
on our industry as punishment for making a profit. He takes credit when prices
go down and blames us for every penny when gas goes up."
During an interview on Bloomberg TV, Mike Wirth, Chevron's CEO, said, Biden
threatening to go after them for making a profit when oil is in high demand
shows how clueless he is. All profits go back to investors not them. A windfall
profit tax or export ban would only raise prices on gasoline.
Big oil will not allow Biden to make them the scapegoat for his bad energy
policies that totally upset global markets. When he cut a large amount of crude
out of future production and refinement, this not only affected America, it was
a title wave that rippled through the entire world's oil exchanges.
“Government can't adjust supply to meet demand. Only markets can do that." –
Hendrith Smith Jr.
Big Oil is doing nothing more than riding the wave of higher energy prices.
Biden cut the supply so the price on crude went up. Brent crude futures, the
global benchmark, surged more than 40% this year. They went up to an expected
high of $130 a barrel with Russia's invasion of Ukraine.
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While prices have come down since then, Brent is
trading above $100 a barrel, which is bolstering profits for oil
companies. Quarterly profits for the largest oil companies continued
to soar during the period ending in September. Shell and ExxonMobil
took in $9.5 billion and $18.7 billion in profits.
Chevron reported its highest profit in a decade,
while Shell posted its highest earnings in years.
Like any business, there are good times and bad
ones. Oil company's profits were down during the pandemic when
traders were actually paying buyers to take oil off their hands.
Exxon suffered a historic net loss in 2020; its worst performance in
decades. Other companies fared even worse.
"An insightful business knows how to survive during good times and
bad times alike." – Ryan Lilly
In 2018, the U.S. exported more oil than it imported for the first
time in 70-plus years. This was not the result of decades of federal
"energy policies," but despite them. For decades, U.S. presidents
all assumed that increased domestic oil production couldn't solve
our energy problems. Everyone believed strict conservation and
"alternative" forms of energy would be the only practical solution.
When Donald Trump took office, he told the Energy Department, "We
need to lift the restrictions on drilling and allow oil producers to
use advanced drilling technologies to gain energy independence."
This increased production, lowered prices and imports steadily
dropped, while exports increased.
"America doesn't need to depend on anyone for oil when we have oil
right here." – Donald Trump
Biden knows the errors in his ways and is looking for a bogeyman to
take the blame for high gas prices with the midterms only a day
away. He is caught between a rock and a hard place with the climate
geeks, the progressives and of course voters who are paying dearly
for his war on energy.
Last week, Northern Democrats, where heating oil
has doubled in price, contacted Biden to help fend off a Republican
wave in the midterms. Biden's answer was to propose a windfall tax
on oil and gas producers to hoodwink voters that his punishing big
oil with a windfall tax will reduce prices.
Biden announced, "Unless oil companies lower prices and increase
production we will impose a windfall tax on 'excess profits' and
impose other restrictions. Their profits are a windfall of war and I
will not put up with this. Anyone receiving windfall profits like
these will be punished unmercifully."
Mohammad Ali said, "If ya threaten anyone, be prepared to fight."
Not only will the oil companies fight back with a vengeance, but
Congress will also. If you want less of anything put a huge tax on
it. Most intelligent voters are aware that businesses don't pay
taxes, their customers do. When the price of diesel fuel hits $10 a
gallon, Teamster union members will start picketing the White House.
Biden and congressional Democrats have attacked domestic energy
since they took office. Voters are aware their energy policies have
driven up fuel and grocery prices, while net wages went down.
The highest inflation in a generation and talk of a looming
recession are stoking voters’ economic fears as they head out to the
voting booth. When voters are unhappy, they vote with their wallets.
Voters will vote for themselves this election. "You are not just
voting for an individual, you're voting for an agenda. You're voting
for a platform. You're voting for a political philosophy." – Colin
Powell
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