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telegram好玩的群组(www.tel8.vip)_Biden blasts oil refiners for cutting production

telegram好玩的群组(www.tel8.vip)_Biden blasts oil refiners for cutting production

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,Major fuel: A man works at a Chevron petrol station in Los Angeles. Fuel demand has remained robust despite record-high gasoline prices. — AFP

WASHINGTON: US President Joe Biden, under pressure over sky-high gasoline prices, demanded oil refining companies explain why they are not putting more fuel on the market as they reap windfall profits.

Biden wrote to executives from Marathon Petroleum Corp, Valero Energy Corp and Exxon Mobil Corp, and complained they had cut back on oil refining to pad profits, according to a copy of the letter seen by Reuters.

The letter was also sent to Phillips 66, Chevron Corp, BP and Shell, a White House official, who declined to be identified, told Reuters.

“At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable,” Biden wrote, adding the lack of refining was driving up gas prices faster than oil prices.

Biden said the industry’s lack of action is blunting the administration’s attempts to offset the impact of oil-rich Russia’s invasion of Ukraine, such as releases from the US oil reserves and adding more ethanol to gasoline.

Energy companies are enjoying bumper profits since the invasion, which added to a supply squeeze driving crude prices above US$100 (RM440) a barrel. Fuel demand has remained robust despite record-high gasoline prices.

White House spokesperson Karine Jean-Pierre said refiners have a “patriotic duty” to increase supplies and cut consumer costs.

“We are calling on them to do the right thing, to be patriots here,” she told reporters.

US refining capacity peaked in April 2020 at just under 19 million barrels per day (bpd), when prices tanked during the pandemic and refiners shut several unprofitable facilities.

As of March, refining capacity was 17.9 million bpd, but there have been other closures announced since then.

US refiners are running at near-peak levels to process fuel - currently at 94% of capacity. They say there is little they can do to quickly satisfy Biden’s demands.

“Our refineries are running full out,” Bruce Niemeyer, corporate vice president of strategy and sustainability at Chevron, said on the sidelines of a Reuters energy transition conference on Tuesday, before the letter was made public.

Shell is “producing at capacity” and looking at options to increase oil and gasoline production, a spokesperson said.

Exxon, the focus of the president’s ire against oil companies last week, has invested to expand its refining capacity by 250,000 bpd, the equivalent of a medium-sized refinery, said spokesman Todd Spitler.

Spitler said the administration in the short term could lift the Jones Act provisions that force domestic shippers to use US-flagged vessels that employ union labour, or waive fuel regulations.

The US government has waived summertime bans on the use of cheaper, smog causing fuel components in emergency cases. The administration recently used emergency powers to lift the ban on gasoline with higher blends of ethanol.

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