Progressives seize on quarterly oil profits to call for windfall tax

Progressives and environmentalists pointed to huge first-quarter profits posted by major oil companies to argue in favor of a windfall profits tax on oil companies amid the ongoing energy crunch. 

Exxon Mobil reported an earnings total of $5.5 billion Friday, even after the $3.4 billion loss the company took after divesting from Russia in response to the invasion of Ukraine. Chevron, meanwhile, announced a nearly 20 percent increase from the quarter before, reporting $6.3 billion in the first quarter of 2022. 

Critics of the oil companies called the reports evidence of gouging by the fossil fuel industry at a time when consumers have seen gas prices skyrocket. Environmental groups have called for taxes on oil companies’ windfall profits to be passed on to consumers.

Facing midterm headwinds due in part to pain at the pump, congressional Democrats have pinned the increases on a combination of corporate greed and the Ukraine crisis. Republicans have pointed the finger at Biden administration policies.

Rep. Ro Khanna (D-Calif.) cited the earnings reports in support of bicameral windfall tax legislation he has introduced with Sen. Sheldon Whitehouse (D-R.I.), tweeting, “Big Oil’s profits skyrocketed last quarter while hardworking Americans suffered at the pump. Let’s pass my bill with @SenWhitehouse to stop this profiteering.” 

Sen. Bernie Sanders (I-Vt.), who has introduced a separate windfall tax bill with Rep. Jamaal Bowman (D-N.Y.), also pointed to Exxon’s reported plans to triple stock buybacks, tweeting, “Instead of increasing supply or expanding production, what did Exxon do? Triple its stock buyback program to $30 billion to enrich its wealthy shareholders. We need a windfall profits tax.” 

“Industry-targeted tax proposals like windfall profits taxes won’t help America’s energy security or reduce prices at the gas pump,” a Chevron spokesperson told The Hill. “Proposals would discourage investment in American companies and further reduce domestic supply.”

The Hill has reached out to Exxon Mobil for comment. 

Updated 4:47 p.m.