- Exxon CEO Darren Woods predicted that the White House’s request for an investigation into “possibly unlawful activity” in the oil and gas business would yield “nothing.”
- “If you go back in time, you see similar types of probes every time supply and demand imbalances tighten and prices rise,” Woods told reporters on Wednesday.
- In a letter to FTC Chair Lina Khan dated Nov. 17, Biden stated that there is “growing evidence of anti-consumer activity by oil and gas businesses.”
Biden’s unjustified call?
President Joe Biden’s request to examine “possibly unlawful activity” in the oil and gas business, according to Exxon, is unnecessary.
“If you go back in time, we find supply and demand mismatches tightening and prices rising every time.” Similar investigations have been seen,” Exxon CEO Darren Woods told reporters, before adding that “nothing” has been found.
“This is a commodity market,” says the narrator. Prices are determined by the amount of available supply as well as the amount of demand. I guarantee you that if you restrict supply while doing nothing to address demand, prices will rise,” he continued.
Remarks after FTC investigation
Biden made remarks after calling on the Federal Trade Commission to investigate energy corporations’ actions after gas prices soared to their highest level in seven years.
Biden claimed there’s “growing evidence of anti-consumer activity by oil and gas businesses” in a letter to FTC Chair Lina Khan dated Nov. 17. Despite a decline in the price of unfinished gasoline, gas prices have remained high, according to the letter.
The White House also stated that increasing energy costs benefit the “two major oil and gas businesses in the United States.” The businesses were not named in the letter, but Exxon and Chevron are the two largest oil companies in the United States by market capitalization.
According to AAA, the national average for a gallon of gas was $3.385 on Wednesday. This compares to a month ago’s average of $3.402. Although the decline does not correspond to the sharp drop in oil prices, it compares.
After rising above $85 at the end of October, US oil was trading about $68.47 per barrel.