This week, the threats have increased to the point of using emergency authorities, such as the Defense Production Act, to compel oil refiners to produce more gasoline.
According to a letter obtained by Axios, Biden will warn CEOs of the United States’ largest oil companies by invoking emergency powers to increase U.S. refinery output this week.
Why it’s important: Biden’s direct interactions with the oil giants are part of a wider White House strategy to lower prices despite few alternatives, portraying oil companies as accountable for consumers’ ever-increasing costs.
It’s not the weekend, so I’m not going to start posting memes about how stupid Biden’s warning is, and to be honest, I believe that everyone reading this understands. Joe Biden isn’t bright enough to grasp it, but you are.
While the president appears to believe he is a king, refining capacity does not care about emergency powers. Refineries are already operating at 90 percent of capacity and no new ones have been built in decades owing to strict federal rules and shifting energy policies. Who would want to build a refinery when one party wants to close it down in 5-10 years? Then there’s the fact that the administration has urged refineries to create environmentally harmful, engine-destroying biofuel as part of its “climate” push.
“Refiners can’t just increase production, given that utilization rates are already over 90%. Furthermore, some refineries are being transformed to produce other things like biofuel.”
The company cut ties with Mr. Biden just days after he submitted his missive. The president’s narrative was debunked by Exxon-Mobil, which pointed out several inconvenient facts in response to it, even stating investments that have resulted in losses in order to keep production going during this severe (typically government-caused) period.
The language is concise and straightforward, and while it will not persuade climate hysterics, the information within is true. Despite the oft-repeated claim that oil companies are only taking money away from their shareholders, Exxon-Mobil points out that they have invested twice as much as they have earned during the previous five years. They have increased production by 50% in opposition to the president’s assertion that they are deliberately restricting production.