Federal Reserve Economists Destroy Biden’s Excuse of Oil Companies Profiteering

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Biden Bidening and Democrats Democratting also involve creating crises and blaming Republicans. This is evident in the Biden Oil Crisis because it was quickly followed by Gas Price Hikes.

“Shockingly”, that is not how Democrats or Biden see it.

The skyrocketing prices of gas can’t all be attributed to “profiteering petroleum companies” — a favorite go-to bogeyman for Democrats.

The week ended with record gasoline prices in America. Biden tried again to discredit this “oil companies are profiteering” talking point. Liberal media puppets were again leading the charge.

LIKE clockwork, The New Yorker published an essay titled As Oil Prices Rise to New Highs. It stated that “The Biden White House faces a form of shareholder capitalism that leaves no space for modest profits and rallies behind Ukraine.”

According to A.A.A., the crude oil price has risen more than $100 per barrel ExxonMobil earned $5.5 Billion, Chevron $6.3 Billion, and ConocoPhillips $5.8 Million.

American small-scale energy producers, often called wildcatters, make large profits. Last week, Marathon Oil, Pioneer Natural Resources, and Pioneer Natural Resources reported earnings in excess of $1.3 billion.

The New Yorker shared some wonderful quotes by Biden in March, as if to assist this conservative political pundit.

The chief executives of the major oil companies have stated that they will increase production and investment.

The New Yorker complained that crude oil production in the United States was still lower than pre-pandemic levels.

Biden said that Republicans are responsible for the current energy crisis. They don’t have an immediate plan to lower energy costs or a plan for tomorrow to make America more energy-independent or cleaner.

That’s a huge problem.

Breitbart News reported that Dallas Federal Reserve senior economists had published an analysis discrediting Democrats’ “profiteering” excuse for high gas prices.

Although gasoline prices in the United States are still high in certain areas, this is not due to a lack of oil supply or price.

Um, Joe?

Golding and Kilian explain two facts to debunk the Democrat myth.

Gas station operators decide prices: “Gas station operators determine retail prices by determining the anticipated acquisition cost for their next delivery from the local distributor, and federal tax rates. To pay operating expenses such as rent and delivery costs, they also add a markup.

The fact that only 1% of U.S. gasoline stations are owned by oil producers means that they cannot control the price of gasoline.

Although I won’t hide the roots of this, Golding and Kilian state that crude oil prices represent roughly 59 percent of gasoline prices. An increase in oil prices would equal an increase in retail gas prices by 20%.

Their analysis shows that a 22% drop in oil prices would lead to a 13% decrease in pump price.

Analysts said also that price gouging was not evident from the way prices were responding to gasoline retail prices.

Golding and Kilian suggest that station owners might be trying to recover lost margins during the downswing when stations didn’t raise prices as quickly as they should have. The rapid rise in wholesale gasoline prices could affect station profit margins.

The bottom line:

Democrats will be Democrats and Biden is going to be Biden. Leftist hypocrisy has no limits. It’s all Biden, from the Biden Oil Crisis to Biden’s Border Crisis, to Biden Afghan Debacle to Bidenomics and Bidenflation, it’s all Biden.

It’s all Biden’s fault and he needs to take the blame for his shit instead of playing the blame game.