President Biden took another jab at Big Oil yesterday, taking aim at a record $30 billion in combined industry earnings this quarter. He threatened higher taxes on oil companies should they fail to work to lower consumer gas prices. Americans continue to face high prices at the pump - $.3.75 a gallon on average nationwide - despite the Department of Energy releasing millions of barrels of oil from the Strategic Petroleum Reserve.
Garrett Baldwin and Mark Sebastian don't really see this tax materializing anytime soon, no matter what the oil companies do - or fail to do. In fact, as Mark noted, oil stocks were up on the day of Biden's speech. Not only that, but relations with key oil supplier Saudi Arabia are continuing to deteriorate, and supply should continue to run tight. That's why Garrett continues to like companies like Chevron Corp. (NYSE: CVX), Devon Energy Corp. (NYSE: DVN), Marathon Oil Corp. (NYSE: MRO), Occidental Petroleum Corp. (NYSE: OXY) and Exxon Mobil Corp. (NYSE: XOM).
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