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Tipsheet

Biden Threatens Oil Companies' Permits

AP Photo/Evan Vucci

President Biden warned oil companies last week that if they don’t do more to help address rising prices, he will revoke their drilling permits on federal lands.

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While touting that gas prices have fallen to below $4 at 30,000 gas stations across 35 states, he said more needs to be done.

"First, we’re going to look at ways to increase oil production from the existing wells and permits that exist today," he said. "The industry has more approved permits for production on federal lands than they can possibly use.  That’s a fact.  Let me say it again: They have more than they can use. 

"So my message to these companies is: Use the permits or lose them.  Don’t say we can’t — you don’t have access," he added.

Second, I’m telling the industry, “You’re making record profits due to Putin’s war in Ukraine.  Use those profits to increase production and refining.  Don’t use those profits to buy back your stocks and dividends.” 

Look, thirdly, we’ll talk about a global price cap on Russian oil — that I got our partners to agree to last month at the G7 — that will keep supply up and Putin’s revenues down.  In the days and weeks ahead, I’m going to keep doing what I can to bring down the price of gas at the pump. (White House)

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The president went on to argue that the "real answer" is not getting gas back to an affordable level, but clean energy.

"That means cleaner renewable energy, more affordable electric vehicles, and clean energy manufactured here in the United States," he said. "That’s how we’ll protect the climate and create jobs."

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