Why Oil Companies Are Raking In Record Profits Under Joe Biden

Why Oil Companies Are Raking In Record Profits Under Joe Biden - Merchant Navy Info - News

During a recent campaign rally, Donald Trump reiterated his warning that President Biden would harm the oil industry. Meanwhile, despite Biden’s focus on transitioning to green energy, the U.S. oil and gas industry has thrived under his presidency, with record-breaking production and profits. This growth can be attributed to factors beyond the administration’s control, such as geopolitical events and technological advancements. The industry has experienced a significant increase in profits. Thus,highlighting the limited influence of U.S. presidents on global oil and gas markets. Produced more crude oil than ever before in 2023. Thereby surpassing the overall previous record set in 2019, and investors benefited handsomely.

The Energy Select Sector SPDR Fund (XLE). It is for tracking the performance of major oil and gas companies. This has surged over 100% since President Biden’s inauguration. Strong financially, these industries are actively engaging in deals, such as ConocoPhillips’ $22.5 billion acquisition of Marathon Oil. Additionally, big oil companies like ExxonMobil and Chevron have been utilizing their profits for substantial stock repurchases. In doing so drawing criticism from the Biden administration. Shareholders also received dividends, and CEOs of these companies significantly increased their wealth. President Trump’s actions regarding environmental regulations and promises made to oil industry executives are also mentioned.

Clean Energy Push — And Pull

This comes from an exclusive report by The Washington Post. Climate activists say Biden’s record on the climate crisis and clean energy is mixed. However, Biden has, in fact, made the largest climate change investment in U.S. history. Also, the biggest legislative victory yet for the environmental movement since the Clean Air Act. On his first day in the White House, Biden revoked the permit his predecessor Trump gave for the controversial Keystone XL pipeline and imposed a moratorium on oil and also gas leasing in the Arctic. Bob McNally, president of consulting firm Rapidan Energy Group, told CNN at the time that “the days of supporting fossil fuels, even as a temporary bridge to a cleaner future, are over.” Additionally, the Biden administration is taking steps to help the auto industry move away from gasoline-powered vehicles, including implementing new emissions standards and overhauling tax credits for electric vehicles.

Biden suspends LNG projects

Earlier this year, Biden announced he would suspend approvals for some upcoming liquefied natural gas export projects, saying, “The pause on approvals for new LNG projects shows the climate crisis for what it is: an existential threat to our time.” The energy industry is taking notice. According to Open Secrets, oil and gas industry figures have donated heavily to Republican candidates and conservative groups this year. But the Biden administration in March approved ConocoPhillips’ massive Willow oil drilling project on Alaska’s North Slope. This holds about 600 million barrels of oil, infuriating climate activists. Despite his mixed record with oil and gas companies,  Biden has led a historic campaign for the industry, Kloza said.

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