Big Oil’s gushing profits call for government crackdown, says Sen. Schumer
With Americans suffering pain at the pump, the government needs to crack down on big oil companies suspected of price gouging, New York Sen. Charles Schumer said Sunday.
Oil giants are taking advantage and raking in record profits, according to Schumer, who also is Senate majority leader.
“We know that Russia’s unprovoked invasion of Ukraine has contributed to higher prices at the pump, the same with COVID-related supply issues,” he said in a statement, “but big oil, in my opinion, is using both these issues to pull the wool over all our eyes as it cashes in more and more.
“It’s time for an inquiry at the FTC level, and beyond,” he said.
Schumer vowed to get law professor Alvaro Bedoya confirmed this week as head of the Federal Trade Commission, enabling the agency to “take a hard look” at potential price gouging.
A former counsel to a Senate judiciary subcommittee, Bedoya would give Democrats a 3-2 majority over Republicans at the agency. Vice President Kamala Harris is expected to provide the tiebreaking vote in favor of Bedoya in the evenly divided Senate.
The appointment comes as gas prices are averaging more than $4 per gallon across the U.S., according to Reuters.
A close look at the money being made by big oil is critical, Schumer said.
“Last year, the top 25 oil and gas companies reported a combined $205 billion, with a ‘B’, in profits,” he said.
“Instead of giving Americans a break at the gas pump, they’ve used their gushing profits to reward shareholders with stock buybacks, which demands answers and inquiry,” he said.
He pointed to a recent report by Friends of the Earth, Public Citizen and BailoutWatch that found the biggest oil and gas companies in the country have hugely boosted stock buybacks and dividends since Russia invaded Ukraine.
“With Big Oil pumping out profits as consumers struggle, a closer look by the FTC is warranted, and with the addition of Mr. Bedoya to the FTC, that can happen,” Schumer said.
