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GOUGING: Oil companies brought in staggering profits hurting consumers

November 1, 2022

Still blaming Biden and the Democrats for high gas prices?

Exxon Mobil broke records with its profits in the third quarter, raking in $19.66 billion in net income. The Irving, Texas, company said Friday that it booked $112.07 billion in quarterly revenue, more than double the revenue it received last year during the same period.

Chevron had $11.23 billion in profits, almost reaching the record profits it attained last quarter, and the San Ramon, Calif., company brought in $66.64 billion in revenues. Chevron’s said its $11.2-billion quarterly net income was the second-highest in company history, surpassed only by the previous quarter when it report more than $12 billion in net income.

Valero Energy Corp. after it reported profits for the July-September quarter that were 500% higher than a year earlier.

Steep gas prices and oil company profits have drawn criticism from President Biden and Democratic lawmakers. Gov. Gavin Newsom took to Twitter again Friday to rip energy company profits. Newsom last week took aim at  “Gas prices shouldn’t be this high. Time to crack down on oil’s price gouging tactics and put their profits back into your pockets,” Newsom tweeted Friday. Newsom has called for a price-gouging penalty as well as additional accountability from oil companies and refiners that do business in the state.

Natural gas prices have also been high, especially as demand for liquefied natural gas has remained strong globally. The U.S. has been increasingly exporting liquefied natural gas to Asia and Europe, especially as supply of Russian natural gas declined after Russia invaded Ukraine and prices skyrocketed. Woods listed inventory concerns as one of the reasons American natural gas prices rose by 15% during the quarter.

Oil prices were initially high during the quarter but fell gradually. A barrel of benchmark U.S. crude was selling for more than $100 when the quarter began in July but was selling for closer to $80 at the end of September. Even so, diesel prices remain high, according to AAA, which affects delivery costs and raises prices for all sorts of consumer goods.