White House spox gets schooled after trying to defend Biden from Jeff Bezos' criticism: 'Doubling down on stupid'



White House press secretary Karine Jean-Pierre tried to defend President Joe Biden on Sunday over a controversial tweet in which Biden demanded gas stations immediately lower their gas prices.

But her attempt fell completely flat.

What is the background?

On Saturday, Biden told gas stations they must lower their prices — and they better do so immediately.

"My message to the companies running gas stations and setting prices at the pump is simple: this is a time of war and global peril," Biden said. "Bring down the price you are charging at the pump to reflect the cost you’re paying for the product. And do it now."

\u201cMy message to the companies running gas stations and setting prices at the pump is simple: this is a time of war and global peril. \n\nBring down the price you are charging at the pump to reflect the cost you\u2019re paying for the product. And do it now.\u201d
— President Biden (@President Biden) 1656777600

The message generated stinging rebuke from many, including from Jeff Bezos, who said the message indicated the Biden administration painfully misunderstands basic economics.

"Ouch. Inflation is far too important a problem for the White House to keep making statements like this," Bezos responded on Twitter. "It's either straight ahead misdirection or a deep misunderstanding of basic market dynamics."

What did Jean-Pierre say?

Jean-Pierre directly responded to Bezos on Sunday and claimed the Biden administration does not misunderstand basic economics, charging the market is "failing the American consumer."

"Oil prices have dropped by about $15 over the past month, but prices at the pump have barely come down. That’s not 'basic market dynamics.' It’s a market that is failing the American consumer," Jean-Pierre said.

"But I guess it’s not surprising that you think oil and gas companies using market power to reap record profits at the expense of the American people is the way our economy is supposed to work," she added.

\u201cBut I guess it\u2019s not surprising that you think oil and gas companies using market power to reap record profits at the expense of the American people is the way our economy is supposed to work.\u201d
— Karine Jean-Pierre (@Karine Jean-Pierre) 1656869207

Omri Ceren, national security adviser for Sen. Ted Cruz (R-Texas), quickly pointed out why Jean-Pierre's response completely missed the mark.

"For oil to become fuel it has to be refined. There's a complex supply chain before and after refining," Ceren explained. "You guys disintegrated investment across that chain by signaling you'd dry up fossil fuel production at top. That's why."

\u201c"Basic market dynamics."\n\n*rubs temples*\n\nHI Karine,\n\nFor oil to become fuel it has to be refined. There's a complex supply chain before and after refining. You guys disintegrated investment across that chain by signaling you'd dry up fossil fuel production at top. That's why.\u201d
— Omri Ceren (@Omri Ceren) 1656887600

EnergyCynic, a popular social media account that focuses on energy, described Jean-Pierre's response as "doubling down on stupid."

"No idea what they are talking about and most people know it," the account said. "These people like to claim they are the 'smart' party."

Despite the Biden administration repeatedly blaming oil companies for record-high gas prices, economists at the Federal Reserve Bank of Dallas explained recently why oil companies are not responsible for gas prices.

"Since only 1 percent of service stations in the U.S. are owned by companies that also produce oil, U.S. oil producers are in no position to control retail gasoline prices," the economists said last month.

ExxonMobil CEO predicts oil market turbulence will go on for years: 'A lot of volatility and discontinuity'



ExxonMobil CEO Darren Woods predicted Tuesday the global oil market will continue to be "tight" for years to come, indicating cost relief at the gas pump is not on the horizon.

What did Woods say?

Speaking at the Bloomberg Qatar Economic Forum in Doha, Woods predicted that turbulence within the global oil market will not subside for three to five years.

"You are probably looking at three to five years of continued fairly tight markets," Woods said. "How that manifests itself in price will obviously be a big function of demand, which is difficult to predict."

Woods added that protection from market volatility will require governments and oil companies to enact "more thoughtful policies."

"We are going to see a lot of volatility and discontinuity in the market place if we don't get to more thoughtful policies," he explained.

Woods also responded to accusations from President Joe Biden that ExxonMobil has "made more money than God." Woods dismissed the remarks as "political rhetoric," explaining his company looks "past" such rhetoric from politicians.

Last week, ExxonMobil responded to a threatening letter that Biden wrote executives at seven oil companies by advising the solution to the gas price crisis lies partially in "clear and consistent policy" from the government "that supports U.S. resource development, such as regular and predictable lease sales, as well as streamlined regulatory approval and support for infrastructure such as pipelines."

The problem that ExxonMobil hinted at is the Biden administration's hostility toward fossil fuels. Through his presidency, Biden has demonized oil and gas. Now, however, he is demanding they produce more oil while accusing them of profiteering.

Anything else?

Woods' dire prediction came one day before Biden called on Congress to temporarily suspend the federal gas tax.

The measure, according to economists, would worsen inflation and probably not benefit Americans who are struggling with record-high gas prices.

Ironically, former President Barack Obama slammed a so-called "gas tax holiday" in 2008 as a "gimmick."

"For us to suggest 30 cents a day for three months is real relief, that that’s a real energy policy, means that we are not tackling the problem that has to be tackled," Obama said at the time.

The national average cost of gas continues to hover around $5 per gallon.

Chevron CEO fires back at Biden over threatening letter — then Biden insults him: 'He's mildly sensitive'



President Joe Biden mocked Chevron CEO Michael Wirth on Tuesday after the oil executive denounced Biden for vilifying oil companies.

What did Wirth say?

Chevron sent Biden a letter Tuesday in response to one that Biden executives sent seven oil companies last week.

In Biden's letter, the president threatened to use "emergency authorities" if the companies do not comply with demands to increase production.

But according to Wirth, Chevron is producing more oil today than at any other point in company history, thus deflating the charge that oil companies are not working hard enough as gas prices remain at record highs. After outlining Chevron's production numbers and its investments, Wirth took aim at Biden.

"[Y]our Administration has largely sought to criticize, and at times vilify, our industry," Wirth said. "These actions are not beneficial to meeting the challenges we face and are not what the American people deserve."

The solution to the ongoing crisis, Wirth explained, "requires thoughtful action and a willingness to work together, not political rhetoric." Wirth, therefore, suggested that bringing down gas prices and increasing oil supply "will require a change in approach" from Biden.

"The U.S. energy sector needs cooperation and support from your Administration for our country to return to a path toward greater energy security, economic prosperity, and environmental protection," Wirth wrote. "We need clarity and consistency on policy matters ranging from leases and permits on federal lands, to the ability to permit and build critical infrastructure, to the proper role of regulation that considers both costs and benefits."

How did Biden respond?

The president was asked about Wirth's letter at the White House Tuesday afternoon.

"He’s mildly sensitive," Biden said of Wirth. "I didn’t know they’d get their feelings hurt that quickly.

"Look, we need more refining capacity. This idea that they don’t have oil to drill and to bring up is simply not true," he continued. "We ought to be able to work something out whereby they’re able to increase refining capacity and still not give up on transitioning to renewable energy."

\u201cReporter: "The Chevron CEO... said that your administration has largely criticized the oil and gas industry and ...would need to take a change in approach in order to make progress in reducing energy prices."\n\nBiden: "I didn't know they'd get their feelings hurt that quickly."\u201d
— Washington Free Beacon (@Washington Free Beacon) 1655841951

How did Chevron respond?

In response to a question about Biden's remarks, a Chevron spokesperson told TheBlaze that Wirth is "looking forward" to a meeting with Energy Secretary Jennifer Granholm on Thursday.

The spokesman added that Wirth "is hopeful for a constructive conversation about actions to address the near-term issues and longer-term stability of energy markets."

CNN anchor exposes massive problem with Biden's threatening letter to oil companies: 'But that’s the problem'



CNN anchor John Berman confronted Energy Secretary Jennifer Granholm Wednesday over a threatening letter President Joe Biden recently sent to oil companies.

What about the letter?

The letter — which Biden sent to executives at BP, Chevron, Exxon Mobil, Marathon Petroleum, Phillips 66, Shell, and Valero Energy — accused oil companies of profiteering at a "time of war" and demanded they do more to increase production of oil.

"At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable," Biden said. "There is no question that Vladimir Putin is principally responsible for the intense financial pain the American people and their families are bearing. But amid a war that has raised gasoline prices more than $1.70 per gallon, historically high refinery profit margins are worsening that pain."

Biden also threatened to use "emergency authorities" if the companies do not comply with his demands.

"Your companies and others have an opportunity to take immediate actions to increase the supply of gasoline, diesel and other refined product you are producing," he said. "My administration is prepared to use all reasonable and appropriate Federal Government tools and emergency authorities to increase refinery capacity and output in the near term, and to ensure that every region of this country is appropriately supplied."

What happened on CNN?

During an interview with Granholm on "New Day," Berman pointed out the contradictory nature of Biden's demands.

Biden administration officials have made it clear from day one they want to transition America from reliance upon oil and gas, and they have even celebrated the current gas price crisis for accelerating that transition. But how can you simultaneously demonize oil companies and demand more oil production?

"Five years from now, 10 years from now, are you telling me you want them drilling for more oil? You want the refineries putting out more gasoline in 5 years or 10 years?” Berman asked.

When Granholm confirmed that "what we're saying is today we need the supply increased," Berman exposed the flaw in that position. Why would oil companies invest in producing more oil if such an investment will be turned to waste in just a few years?

"But that’s the problem for these companies," Berman told Granholm. "These companies are saying, you know, ‘You’re asking me to do more now, invest more now, when, in fact, 5 or 10 years from now we don’t think that demand will be there, and the administration doesn’t even necessarily want it to be there."

\u201cCNN's John Berman asks Energy Sec. Granholm how President Joe Biden could expect oil companies to absorb losses in the near term while his administration works to put them out of business entirely.\u201d
— Virginia Kruta (@Virginia Kruta) 1655315828

Economists at the Federal Reserve of Dallas have already debunked the allegation that oil companies are responsible for record-high gas prices.

"Since only 1 percent of service stations in the U.S. are owned by companies that also produce oil, U.S. oil producers are in no position to control retail gasoline prices," the economists explained last month.

Economists at Federal Reserve bank debunk popular Dem narrative about record-high gas prices



Economists at the Federal Reserve of Dallas published analysis this week debunking a popular claim that Democrats make against oil companies.

What do Democrats claim?

As gas prices reached new record highs this week, the popular Democratic talking point — that oil and gas companies are profiteering — was recycled into the national conversation.

The New Yorker published an essay titled, "As Gas Prices Reach New Highs, Oil Companies Are Profiteering." Contained in the publication are quotations from various Democrats, including President Joe Biden, that accuse oil companies of not spending the resources necessary to beef up production of oil and gas because they care more about their profit margins.

Next week, the House is even voting on legislation promoted by Democrats to combat the oil industry's alleged exploitation of consumers.

But what do the economists say?

Garrett Golding and Lutz Kilian, senior economic analysts at the Federal Reserve of Dallas, explained that profiteering and price gouging are not contributing to the staggering price of gas.

Two facts in particular disprove this myth. Golding and Kilian explained:

  • Gas station operators set prices: "Gas station operators set retail prices based on their expected acquisition cost for the next delivery of fuel from the local distributor, federal and state tax rates, and a markup that covers operating expenses, such as rent, delivery charges and credit card fees."
  • Nearly every gas station is owned by a company that does not produce oil: "Since only 1 percent of service stations in the U.S. are owned by companies that also produce oil, U.S. oil producers are in no position to control retail gasoline prices."

Meanwhile, they explained that in March 2022, when the average price of gasoline was $4.22 per gallon, 59% of the cost was directly related to the price of the oil, while 18% of the cost was refining the oil, 12% of the cost was distribution and marketing, and the remaining 12% was the cost of taxes.

The economists also addressed asymmetric nature of gas price changes.

[T]he asymmetry of the response of retail gasoline prices need not be evidence of price gouging. One potential explanation is that station operators are recapturing margins lost during the upswing, when gas stations were initially slow to increase pump prices. The reluctance to lower retail prices also likely reflects concerns that oil prices—and, hence, wholesale gasoline prices—may quickly rebound, eating into station profit margins.

Another possible reason for this asymmetry is consumers’ tendency to more intensively search for lower pump prices as gasoline prices rise than when they decline. This diminished search effort provides further pricing power to gas stations, causing prices to fall more slowly than they rose. This has prompted researchers to liken the response of gasoline prices to higher oil prices to a rocket—and the response to lower oil prices to a feather.

Gas prices hit another record high on Friday, according to AAA, when the national average of gas reached $4.43 per gallon.