When people are giving you an average 34/61 job approval on the economy, they want to hear a little more response to rapid inflation other than “make lemonade.” This is nearly a Marie Antoinette moment, with Biden basically telling Americans that he will let them drive EVs — cars that the current energy profile on the grid won’t support en masse
, by the way. Rapid increases in gas prices are hammering American households now
, and only became a problem when Biden became president. Just to remind everyone, this is the latest chart from EIA on gas prices, although the new record high will come out later today:
That “fundamental turn” happened in March 2021, and it hasn’t even leveled off yet.
Biden then tells reporters that “his team” will meet with oil executives to demand answers as to how they made $35 billion in the first quarter. Estimates for the entire industry put their Q1 profit margin at 11.1%
— not a bad rate of return, but not even in the top twenty for profitable industries in the US. Assuming Biden’s right on the numbers, and that’s almost always a very bad
assumption, the answer would be that they made it on $318 billion in revenues after paying $283 billion in costs. According to CSI Market, that puts the oil industry at #36 in terms of net profit margin — up from #59 in the previous quarter, but hardly a runaway top investment.
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