President Joe Biden talks about the recently approved COVID-19 vaccines for children under 5, Tuesday, June 21, 2022. The Chevron chief complained on Tuesday that President Joe Biden had discredited energy companies at a time when gasoline prices were near record levels, and the president responded that the CEO of the oil company was “mildly sensitive”. The president has criticized oil producers and refineries in recent weeks for maximizing profits and making “more money than God” instead of increasing output in response to higher prices as the economy recovers from the pandemic and feels the effects of its invasion. Russia in Ukraine. Michael Wirth, president and CEO of Chevron, wrote an email to Biden on Tuesday stating that the president’s own words were self-destructive in encouraging companies to boost production. Chevron is investing in more production, Wirth wrote, but “your management has largely sought to criticize and at times discredit our industry. “These actions are not good for the challenges we face, and they are not what the American people deserve.” The CEO of the oil company said he wanted a more cooperative relationship with the government. “Let’s work together,” Wirth wrote. “The American people rightly expect our country’s leaders and industry to address the challenges they face in a serious and decisive manner.” Asked about these comments, Biden showed no sympathy. “He is slightly sensitive,” Biden said. “I did not know that they would be hurt so quickly. Look, we need more refining capacity. “The idea that they do not have oil to drill and to carry is simply not true.” Average gas prices are nearly $ 5 a gallon nationwide, a pressure on commuters and a political albatross for Biden’s fellow Democrats running in the by-elections. That left the White House trying to find solutions, including a possible suspension of the 18.4 cents gallon federal gas tax. Biden plans to decide by the end of the week whether the tax should be suspended, a move aimed at easing price pressures and that it would need approval from a reluctant Congress. The gas tax finances highways, but Biden said on Tuesday that any loss of revenue would not have a significant impact on road construction due to last year’s $ 1 trillion infrastructure law. The clash between the Biden government and oil producers and refineries unfolded ahead of Thursday’s meeting between Energy Secretary Jennifer Granholm and energy companies. Both House Speaker Nancy Pelosi and Senate Republican leader Mitch McConnell have previously expressed skepticism about the benefits of the gas tax cut. But spokesman Adam Schiff, D-Calif., Backed a bill that would put the gas tax on hold until the end of 2023. Sif said in a statement that he had contacted the White House to encourage the gas tax holiday, adding: “But we must not stop there. We should also hold Big Oil responsible for the price spike that is driving prices up from the start. “ Parliament has passed legislation to crack down on alleged price increases by oil companies, but the bill has stalled in the Senate. Democratic proposals to tax “unexpected profits” on oil producers have generated little support in Congress. The possibility of a gas tax holiday has provoked criticism from economists and the business community for failing to address the underlying supply challenges. In a speech Tuesday at the Economic Club of New York, a non-profit, non-partisan business group, Target CEO Brian Cornell described the gas tax holiday as a temporary “mini incentive” that does not radically change the supply curve. and demand for fuel and transportation. “We have a classic supply and demand challenge,” Cornell told the audience. “With all due respect, gas breaks will only fuel demand. It does nothing to increase supply. “ Harvard University professor Jason Furman, a former top economist at the Obama White House, said the gas tax suspension would not address supply pressures. “Refineries are even more limited now, so supply is almost completely inelastic,” he wrote on Twitter. “Most of the 18.4 cents reduction will go to industry – with perhaps a few cents being passed on to consumers.” White House spokeswoman Karine Jean-Pierre told reporters that the government is considering as many ways as possible to offer consumers some relief at the petrol pump. But the administration does not intend to tell Americans to drive less during the July 4 vacation and to reduce some of the supply pressures. “Americans will do what they think is right for themselves and their families,” said Jean-Pierre. “It’s not something we can judge.”
