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.
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.