Indeed, the Biden administration, for one, has been quick to call on oil companies to “to pass through lower energy costs to consumers right away.” Claiming that input costs for refiners are falling while their margins are rising, the White House said in a recentthat the industry must immediately share its higher profits with consumers by lowering end prices for their products.
Meanwhile, the attempts of governments on both sides of the Atlantic to force the oil industry to part with some of its “excess” profits may be about to backfire. Ever since the EU and the UK announced plans for windfall taxes on the oil sector, both the industry and analysts have been warning this would lead to lower investment appetite. Instead, companies will continue to prioritize the return of cash to shareholders, which would further undermine the security of future supply.
In the UK, the windfall tax was approved in July, and the country’s industry lobby group warned it would threaten investment plans. The head of the body, Deirdre Michie, noted that “Exploring for oil and gas and then bringing it to shore is inherently a risky and expensive business, so our members need the UK’s fiscal rules and other regulations to be stable and predictable before they consider investing the hundreds of millions of pounds needed for such projects.
Compare to $APPL who made $83 billion in third quarter, seems like ENERGY and Biden should be talking to them about a windfall tax. Unbelievable a gadget, with forced obsolescence built in, made in China earns more than all of Big Oil combined.
…….so much more cash to come yet.