Oil and gas executives rebuff Biden criticism of high prices Industry and trade groups say president's 'patriotic' comments have no place in an economic discussion David Lawder and Heather Timmons Biden's criticism is being Washington, 21 June 2022, Business Day soundly rebuffed by industry President Joe Biden's pointed criticism executives and trade groups as of oil and gas companies for earning having no place in an huge profits as families suffer from economic discussion. high petrol prices challenges a pillar of "The injection of 'patriotism' US capitalism: that companies should into this is an attempt to put THE WHITE make as much profit as they legally shame on folks," said Neil Jawboning can, and direct that windfall back to Bradley, chief policy officer at approach: the US Chamber of White House investors. press Biden told Shell, ExxonMobil and Commerce, the pro-business secretary Chevron and other refining giants last lobby group. "These a Karine Jean- Pierre says week they have another responsibility: market forces and market he US functions." administrati to do everything they can to bring down on sees it as high petrol prices that are squeezing US Instead, Bradley and other THE WHITE HOUSE patriotic consumers and driving up inflation. industry officials say the US WASHINGTON duty for US oil "We see it as a patriotic duty," White administration should remove companies House press secretary Karine. Jean- import tariffs and cut to do everything Pierre said. Russia's invasion of Ukraine regulations to allow more they can to has caused gas price hikes, she said. domestic toss1 fuel bring down "We know where to put the blame, on production and refining, high fuel the war. But oil companies, oil refiners which would give energy prices. they have responsibilities too. What they markets the signal that have been doing is taking advantage of supplies will increase. RETHINK Biden himself campaigned on caucus has pushed bills US the war." But, the idea that US CEOS The president's recent push is a promise to fix inequality, expanding workers' and companies, including Exxon BUYBACKS should serve other part of a slow-boil rethink of raise wages and force consumers' rights, playing a and Chevron, pledged they Particularly galling to the White House stakeholders besides the role that companies, CEOs companies to pay their "fair growing role in Washington would not only work for is the jump in industry stock buybacks, investors, and take direction and the very wealthy should share" in taxes, part of a lawmaking. shareholders, but employees, returning profits to shareholders which from other masters besides play in the US, what workers broader attempt to reshape the These companies have made customers, suppliers and thei the administration wants invested in market forces is not new for and average citizens deserve US economy. promises too. In the summer communities to "build an more refining capacity to bring petrol Biden, the US presidency, or and whom governments Democrats' near 100-member of 2019, CEOs of more than economy that serves all prices down. for corporate US. should champion and protect. Congressional progressive 180 big Americans".Inflation hits poorer Americans been very effective", Martin particularly hard because they spend a Bailly, a senior fellow in greater percentage of their income on food economic studies at the and fuel. centrist Brookings Institution Asked about the pledge in the context of think-tank, said. Biden's remarks, the Business Roundtable "Biden's frustration is that organised it said: "Business understandable because there Roundtable CEOs, including energy is no tool to reduce inflation members, are attempting to do just that except to put the whole while navigating a global energy crisis, economy into a downturn," high costs for crude oil and other inputs, said Bailly, an expert on and an adverse regulatory and investment regulation and productivity. environment." "I think the right approach is Biden's attempt to shame these companies to tough this situation out, he into taking less profit has historical said. precedent. President John F Kennedy tried "Tell Americans that the to curb steel prices 60 years ago, inflation is the result of criticising "a tiny handful of steel disruptions from Covid-19 executives whose pursuit of private power and the huge price shock from and profit exceeds their sense of public the Russial Ukraine conflict. responsibility" and accusing them of "Support the Federal Reserve showing "utter contempt for the interests and say that things will be bad of 185million Americans". for some time, but we will get Kennedy's diatribe in April 1962 came in through this and restore response to steel companies announcing a growth and price stability as $6-a-tonne price increase, shortly after soon as possible," Bailly said. agreeing to a new contract - brokered by 7 THE INJECTION OF Kennedy's administration - with the 'PATRIOTISM' INTO United Steelworkers union. THIS IS AN ATTEMPT A day after Kennedy's remarks, the TO PUT SHAME ON companies rescinded the price hike. Unlike now, the exchange came while FOLKS ... THESE ARE steel profits were declining, imports were MARKET FORCES AND increasing and shares were falling. MARKET FUNCTIONS Announcing disappointing earnings a Neil Bradley US Chamber month later, US Steel CEO Roger Blough of Commerce reportedly told shareholders: "This concept is incomprehensible to me - the belief that government can ever serve the national interest in peacetime by seeking to control prices in competitive American business, directly or indirectly, through force of law or otherwise." Jawboning companies "to reduce inflation has never