Why are Oil Companies Thriving During Joe Biden's Term? Here's What Charges Oil & Gas Industry Profits

By Giuliano De Leon

Jun 11, 2024 01:18 PM EDT

Oil companies thrived significantly during Joe Biden's term, which is surprising since the Biden Administration touted efforts to move away from fossil fuels. Is the US President to blame for the rising oil and gas profits? 

Why are Oil Companies Thriving During Joe Biden's Term? Here's What Charges Oil & Gas Industry Profits
Oil rigs just south of town extract crude for Chevron at sunrise on July 22, 2008 in Taft, California. Hemmed in by the richest oil fields in California, the oil town of 6,700.
(Photo : David McNew/Getty Images)

Why Are Oil Companies Thriving During Joe Biden's Term?

According to ABC 12 News, Donald Trump said during the last presidential election that Joe Biden would destroy the oil industry if he became the US president.

However, his warning didn't happen, as oil giants in the United States greatly thrived under his administration. The US Energy Information Administration revealed that more crude oil was produced in the country in 2023.

The oil production in 2023 even the record set in 2019. Because of this, oil companies are raking hundreds of billions in profits. But why does this happen if Joe Biden wants to transition away from fossil fuels and move towards green energy sources?

CNN Business reported that the US's thriving oil and gas industry isn't directly linked to Joe Biden's policies. Oil companies are thriving because of the following reasons:

  • Travel demand surged after the global COVID-19 pandemic.
  • Russia's ongoing invasion of Ukraine.
  • The arrival of new technologies that help increase oil and natural gas production.

Read Also: Oil Prices Expected to Hit $86 in Q3 Due to Increased Summer Fuel Demand

How Much Oil Companies Earn Now

Between 2021 and 2023, oil companies in the United States earned over $250 billion in profits. Among the top oil and gas companies are the following:

  • ConocoPhillips (CPP)
  • ExxonMobil (XOM)
  • EOG Resources (EOG) 
  • Schlumberger (SLB)
  • Chevron (CVX)

What they earned during the said period was 160% higher than what was earned during the first three years of Donald Trump's presidential term.

Related Article: US Crude Oil Refiners to Boost Fuel Output Beyond 90% Capacity for Summer

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