Joe Biden may have come into office with bold promises on climate action, but oil companies have found ways to thrive. How exactly have these giants managed to profit? Let’s dig into the specifics.
1. Record High Oil Production
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Despite Biden’s climate promises, U.S. oil production hit a record 13.3 million barrels per day in 2023. This level of production is making oil companies richer than ever.
2. Federal Drilling Permits Increase
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Biden approved more federal drilling permits in his first three years than Trump did, allowing oil companies to expand operations significantly.
3. Rising Exports
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U.S. ports are shipping record volumes of oil and gas abroad, particularly to Europe. This increase in exports has been a boon for companies’ bottom lines.
4. Corporate Profits Surge
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Oil giants like ExxonMobil and Chevron reported combined profits of over $85 billion in 2023, riding high on increased production and export volumes.
5. High Gas Prices
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The average gas price during Biden’s presidency has been $3.60 per gallon, compared to $2.57 under Trump. Higher prices at the pump mean more revenue for oil companies.
6. Fossil Fuel Job Growth
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Jobs in the oil, gas, and coal sectors grew by 11.3% during Biden’s first two years, outpacing growth in renewable energy jobs and ensuring more workforce stability for fossil fuels.
7. Shareholder Payouts
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Companies like Shell announced massive shareholder dividends and stock buybacks, reflecting their strong financial performance under Biden’s administration.
8. Tax Benefits
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Despite Biden’s climate rhetoric, tax policies and loopholes still favor fossil fuel industries, allowing companies to maximize profits while minimizing tax liabilities.
9. Keystone XL Cancellation
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While Biden canceled the Keystone XL pipeline, the decision has not significantly impacted overall oil production or profits, thanks to high domestic and export demands.
10. Natural Gas Expansion
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U.S. natural gas production reached new heights, helping to satisfy both domestic and international demands, further boosting company revenues.
11. Permian Basin Boom
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The Permian Basin continues to be a gold mine for oil extraction, with companies investing heavily in this region to capitalize on high production rates.
12. Regulatory Easing
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While Biden has pushed for stricter environmental regulations, enforcement has lagged, allowing many oil companies to operate with fewer restrictions.
13. Record LNG Exports
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Liquefied natural gas (LNG) exports from the U.S. have hit new records, driven by global energy demands and geopolitical shifts like the Ukraine conflict.
14. International Demand
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Global crises have pushed countries to seek stable energy supplies, making U.S. oil and gas an attractive option, thereby increasing exports and profits.
15. Renewable Energy Job Lag
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While renewable energy jobs are growing, they still lag behind fossil fuel sector employment, ensuring that oil companies retain a strong labor force.
16. High Demand Post-Pandemic
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The post-COVID economic rebound has spiked demand for energy, driving oil and gas consumption back to high levels and benefiting producers.
17. Supply Chain Dominance
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Oil companies have maintained dominance over energy supply chains, ensuring they capture a significant share of profits from both production and distribution.
18. Political Influence
Despite Biden’s green agenda, oil companies continue to wield significant political influence, shaping policies that protect their interests.
19. Energy Security Concerns
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Biden’s administration has emphasized energy security, often resulting in policies that favor maintaining robust oil and gas production.
20. Financial Market Performance
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Oil stocks have surged, with the Dow Jones U.S. Oil and Gas Index reflecting substantial gains, rewarding investors and ensuring continued capital flow into the sector.
Time to Rethink?
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These facts make it clear: oil companies are thriving under Biden’s watch, despite his climate ambitions. If you’re concerned about climate change or the economy, it might be time to rethink our energy policies and their real-world impacts. The next vote could shape the future of both the planet and our pocketbooks.
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For transparency, this content was partly developed with AI assistance and carefully curated by an experienced editor to be informative and ensure accuracy.
