Story by Maddy Williams / Contributing Writer
Gas prices have been drastically soaring in 2022.
Many blame Russia for this disturbance. However, prices should not have risen to this degree.
Gas prices reached $4.33 per gallon, a record high according to AAA.
President Joe Biden explained that prices did go up 75 cents after Putin sent troops to the Ukrainian border. Unfortunately, they have only continued to rise, despite the allowance to drill for more oil after the U.S. has pulled away from dealing with Russia.
White House National Economic Council Deputy Director Bharat Ramamurti stated in a television interview that there are around 9,000 unused permits that the U.S. government has provided for oil and gas production.
This questions whether oil companies genuinely need to raise prices as much as they currently are.
Europe and Asia receive the majority of their oil from Russia. According to U.S. Energy Information Administration, Europe received 60 percent of Russian oil exports, and China acquired 20 percent.
Very little of Russia’s supply goes to the United States. For example, only about 90,000 barrels of crude oil per day were delivered throughout December.
Re-adjusting from the pandemic in 2021 helped oil companies to reach record profits, as people were enthusiastic about traveling again.
Chevron earned $15.6 billion in profits in 2021, due to rising gas prices, according to The Wall Street Journal. They expect profits to increase in 2022.
Exxon made $8.9 billion in 3 months at the end of 2021, according to The New York Times. They also expect to save more money and earn a more significant competitive advantage this year.
Shell’s earnings increased from $4.85 billion in 2020 to $19.3 billion in 2021, according to Reuters.
B.P. reached its highest profits in eight years, making $12.85 billion in 2021, according to Reuters.
The government can help this issue by suspending federal gas taxes for the rest of the year. CBS News said that this could save motorists about 18.5 cents a gallon.
Gas prices are only continuing to rise, benefiting oil companies by allowing them to make more profit than they’ve made in years.
It is unknown at this time when prices are expected to decrease.
Photo by Toriana Williams / News Editor
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