Joe Biden Letter To Oil Companies

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THE WHITE THONOUSE
WASHING
June 14,2022
Dear Mr. Woods:

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Lam writing to you about the shsiignhgprices our fellow Amernincianng are paying at thelipnuemp, aensd how.
wecaenaseadll play a epart in addr0e thenm.. Since the begi of this year, gaso pric have
incr by mor than $1.7 per gallo
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‘Vladipmtierd Putin's wlarof algygressio and theen bipartisa aanld glob.al effort to corupnter it, has oline
disrus the globean supp ofoilg and drives, up the glob perciceedentBeudt the csohnanectrise iwn egeans
priccee is not driv onlcye by ris.in oil pric ebut by anceunpr de dis t bet thel,
pr ho, oi an th pr of ga T la ti th pr no. cr y,oi w s abosu $120 per barre r,in
i f l d e i s h e s t m e i f u l a
Marc the priceof gas at the pump. was $4.25 per gallo Toda gas price are 75 cents highe
and diesel prices are 90 cents higher
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To be sure, the shortageofrefining capacity is a global challenge and a global concern.
‘Around 3 million barrels a day of global refining capacity have gone offline since the onset
of the pandemic, inhibiting our ability to ramp up supply ofgasoline, diesel and jet fuel. 1am
‘working with allies and partners and countries around the world to encourage global refinery
capacity to come back online. But, in the United States alone, oil refiners significantly
reduced their capacity during the pandemic. In the year before I took office, refineries in the
United States reduced their capacity by more than 800,000 barrels a day, leaving American
refinery companies today at their lowest levelof capacity in more than ahalf decade.
T understand that many factors contributed to the business decisions to reduce refinery capacity,
which occurred before I took office. But ata timeofwar, refinery profit margins well above
normal being passed directly onto American families are not acceptable.
“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.
Your companies and others have an opportunity to take immediate actions to increase the
supply of gasoline, diesel, and other refined product you are producing and supplying to the
United States market, With prices for your product where they are today, you have ample
market incentive to take these actions, and I recognize that some of you have already begun
todo so. I also encourage you to continue maintaining and expanding fuel supply safely.
In addition, my Administration is prepared to use all reasonable and appropriate Federal
‘Government tools and emergency authorities to increase refinery capacity and output in the near
term, and to ensure that every region of this country is appropriately supplied. Already, I have
invoked emergency powers to exccute the largest Strategic Petroleum Reserve release in history,
expand access to E15 (gasoline with 15% ethanol), and authorize the use of the Defense
Production Act to provide reliable inputs into energy production. Iam prepared to use all tools
at my disposal, as appropriate, to address barriers to providing Americans affordable, secure
energy supply.
“The erunch that families are facing deserves immediate action. Your companies need to work
with my Administration to bring forward concrete, near-term solutions that address the crisis and
respect the critical equities of energy workers and fence-line communities. I have directed the
Secretary of Energy to convene an emergency meeting on this topic and engage the National
Petroleum Council in the coming days. In advanceof that, I request that you provide the
Secretary with an explanationofany reduction in your refining capacity since 2020 and any
concrete ideas that would address the immediate inventory, price, and refining capacity issues
in the coming months — including transportation measures to get refined product to market.
“The lack of refining capacity -- and resulting unprecedented refinery profit margins
are blunting the impactofthe historic actions my Administration has taken to address
3
Vladimir Putin's Price Hike and are driving up costs for consumers. 1 appreciate your immediate
attention to this issue andyour efforts to mitigate the economic challenges that Viadimir Putin's
actions have created for American families.
pi
Darren Woods
Chairman and Chief Executive Officer
Exxon Mobil Corporation
5959 Las Colinas Boulevard
Irving, Texas 75039

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Dear Mr. Woods:

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