In the run-up to the midterm elections, President Joe Biden couldn’t resist taking a shot at one of the Democratic Party’s favorite scapegoats. As Americans continued to face high prices at the pump, Biden blasted oil and gas companies for “war profiteering” off Russia’s invasion of Ukraine.
He raised the prospect of a so-called windfall-profit tax on the oil industry, which already exists in the United Kingdom and Europe. While Biden did not explicitly endorse a plan, congressional Democrats have been pushing various proposals for months. And it probably did them some good at the polls on Tuesday, since Big Oil is an effective Democratic Party boogeyman.
Biden is correct that oil and gas companies are minting money, and they do indeed seem out of touch with the impact of energy inflation on ordinary households. Consider Exxon Mobil Corp. boss Darren Woods: Announcing the company’s highest-ever, $19.7 billion quarterly profit at the end of October, Woods acknowledged the pressure to return funds “directly” to the American people. “That’s exactly what we’re doing in the form of our quarterly dividend,” he declared.
