Oil Companies Are Raking in Record Profits in This Gas Crisis

President Biden called out oil refineries in a letter Tuesday, noting that many oil companies are posting record profits during the ongoing gas price crisis. The administration is calling on them to increase supply quickly and explain any capacity decreases since 2020.

"At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable," Biden wrote, as CNN reported. "There is no question that Vladimir Putin is principally responsible for the intense financial pain the American people and their families are bearing. But amid a war that has raised gasoline prices more than $1.70 per gallon, historically high refinery profit margins are worsening that pain."

The letter was addressed to ExxonMobil, Shell, BP, Chevron, Marathon, Valero, and Phillips 66. The companies have not ramped up production in response to rising prices nearly as aggressively as in previous oil price spikes, though the explanations for that are debated. Some accuse the companies of profiteering, others suggest that the companies are hesitant to invest in new capacity at a time when overall global oil consumption is approaching what many experts believe will be its peak. As the world pivots to renewables, there's little appetite for costly investments in capacity.