Brace for $6/gal as Lawmakers Push 21% Tax Hike on Oil Companies

Two years ago, New Mexicans were paying under $2.00 a gallon for gas. One year ago, they were paying under $3.00. Today, they are paying just under $5.00, and analysts anticipate prices will hit $5.50 by the end of the month and $6.00 nationally by the end of August.

The mainstream media blame the usual suspects for the surge, with Vladimir Put at the top of the list.

“A confluence of forces, led by Russia’s invasion of Ukraine, has crimped oil supply and bumped up demand.”

MSM, June 13, 2022

Ukraine, however, is not a major oil producing country, and war there did not slow Russia’s own production of oil. It was global leaders’ attempt to punish Russia by blacklisting their oil that “crimped supply and bumped up demand.”

Crude oil was trading over $120 a barrel Tuesday.

Democrats, from the president to legislators in New Mexico, the second-largest oil producer in the country, have been increasingly critical of Big Oil, threatening to shut down drilling and move away from fossil fuels toward “greener” technologies. Adding to the anti-oil sentiments, U.S. Senate Finance Committee chairman Ron Wyden plans to introduce a bill in the U.S. House to set an additional 21% tax on oil profits that politicians consider “excessive.”

The American Petroleum Institute, the top U.S. oil lobby organization, said “policymakers should be focused on increasing energy supply and reducing costs for Americans. Imposing new taxes on our industry will do the exact opposite and only discourage investment at a time when it’s needed most.”

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3 replies »

  1. Observe that many companies have grandfathered leases down state but choose not to open or explore because of regulatory uncertainty and now increased cost of capital. The traffic is a bit calmer. Wells are still producing but shale eventually slows, so will remain steady. To a degree ESG investment barriers are involved in making producers think overseas for drilling. We will discover green is more expensive than we dreamed about. Notice all those green jobs we were promised haven’t quite arrived, if ever.


  2. “ U.S. Senate Finance Committee chairman Ron Wyden plans to introduce a bill in the U.S. House to set an additional 21% tax on oil profits that politicians consider “excessive.”
    Why are these anti American socialists allowed to cripple our way of life in sacrifice to their ideology? People are suffering while they turn the screws even tighter…their goal of 0 hydrocarbons is unrealistic and will take us back to the dark ages…vote them out now before it’s too late for our country!


  3. Proves the idiots have no idea that corporations never pay taxes, the consumer does.

    If they really want to raise prices more, why not a surtax on all income of corporations after deductions. With Apple at a much higher profit margin over Exxon think how that would generate revenue. Better yet, usually the high profit corporations provide goods and services much less essential to the economy.


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