Big Oil Profits Spike Under Biden despite Criticism” or “Surprising Financial Success of Energy Sector under Biden Administration

While Big Oil has criticized President Biden’s efforts to decarbonize the economy and restrict fossil fuel production, the industry has actually performed better financially under his administration than during former President Trump’s term. According to data from S&P Capital IQ, the energy sector’s profit margin in 2023 averaged 11.3%, with projections for 2024 remaining similar. This would result in an average profit margin for Biden’s presidency of around 11%. During Trump’s tenure, the energy sector’s profit margin was near zero, except for the disastrous year of 2020 due to the COVID-19 pandemic. However, the current surge in oil prices has allowed companies like ExxonMobil to post record profits, surpassing even pre-pandemic levels. Experts attribute this trend to global market forces rather than specific actions by either president. Under Obama, the fracking revolution led to a boom in US oil production that was not directly related to his administration’s policies. Conversely, under Trump, the OPEC+ nations countered the US production increase by increasing their own output, resulting in low prices for consumers but poor profitability for producers. Trump has proposed reversing some of Biden’s green initiatives in exchange for major campaign contributions, but some executives may prefer maintaining higher prices instead of maximizing production. Ultimately, the impact of any president’s policies on the energy sector may be less significant than broader economic trends.