How Oil Companies Are Responding To Pressure From Biden On Gasoline Prices

In a letter to top oil executives this week, President Joe Biden criticized oil companies as gas prices hover around the $5 mark in the U.S. 

What Happened: “At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable,” Biden said in the letter. 

Exxon Mobil Corp XOM has touted that it has been investing more than other U.S. oil and gas companies to increase supply.

In a Wednesday statement responding to Biden, the oil company offered  short-term and long-term solutions for the U.S. government: "waivers of Jones Act Provisions and some fuel specifications to increase supply."

Long-term solutions could include government promoted investments such as predictable lease sales and streamlined regulatory approval for pipelines, the oil company said. 

Additionally, Exxon said it has aggressively increased refining capacity to 250,000 barrels per day, borrowing $30 billion during the pandemic after losing $20 billion to continue investments.

"This includes investment in the U.S. of more than $50 billion over the past five years, resulting in an almost 50% increase in our U.S. production of oil during this period."

Earlier in the week, Chevron Corporation CVX  recently announced an acquisition of Renewable Energy Group, bolstering its renewable fuel production capacity to 100,000 barrels per day by 2030.

The Oil Supply: According to the Energy Information Agency, “U.S. crude oil refinery inputs averaged 16.3 million barrels per day during the week ended June 10, 2022 which was 67,000 barrels per day less than the previous week's average.”

This number comes with refineries operating at 93.7% operable capacity, according to the report.