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While consumers are getting hammered by high gas prices and spiraling energy costs linked to the Russian invasion of Ukraine, top fracking executives have seen their wealth soar. Since the beginning of the year, the value of shares currently held by the CEOs of just eight leading fossil fuel companies has increased by nearly $100 million.
A Food & Water Watch analysis of leading fossil fuel interests --- fracking companies Cheniere, EQT, EOG Resources, pipeline giants Kinder Morgan and Enbridge, and industry powerhouses Chevron, ConocoPhillips, and Exxon Mobil - shows that executives have profited from the current crisis, taking advantage of global price increases that have sent company stocks soaring.
The value of Cheniere CEO Jack Fusco's company stock has increased by $25 million from January to March 10 of this year. ExxonMobil CEO Darren Woods's stock holdings have increased by $25 million over the same period, while the value of Kinder Morgan CEO Steven Kean's stock has jumped nearly $15 million. Some of these corporate leaders have sold shares to cash in on the crisis; ConocoPhillips head Ryan Lance sold shares for $23 million in mid February, while Chevron CEO Michael Wirth sold $14 million worth of stock in January and February.
The companies are finding other ways to consolidate wealth in response to this crisis. These eight big fracked gas and export companies announced stock buybacks and repurchase authorizations in the last year totaling over $25 billion. That amassed wealth is equivalent to filling up 500,000,000 10 gallon tanks of gas at $5 a gallon or enough to heat the homes of over 33 million people for the winter (assuming a $750 gas bill).
"This data shows that a small handful of fossil fuel CEOs are making enormous and unconscionable profits from this invasion and the ensuing humanitarian crisis," said Food & Water Watch Research Director Amanda Starbuck. "The fracking industry is seeking a long-term strategy to deepen global dependence on dirty fossil fuels. It is nothing short of a cynical exploitation of a genuine crisis. The climate crisis demands a shift away from fossil fuels, and these companies are attempting to drive us in the opposite direction."
The invasion of Ukraine is being used by fossil fuel interests to promote an even greater expansion of liquified natural gas (LNG) exports, theoretically to replace Russian gas in Europe. EQT, the largest US gas company, launched a PR campaign with a plan titled "Unleashing U.S. LNG: The Largest Green Initiative on the Planet."
While the industry and White House officials make a push to increase drilling, this would have no impact on current gas prices. The campaign to promote LNG in response to Ukraine is a cynical calculation by the dominant players in the industry to lock in long-term contracts that would create decades of additional fossil fuel dependence.
Food & Water Watch mobilizes regular people to build political power to move bold and uncompromised solutions to the most pressing food, water, and climate problems of our time. We work to protect people's health, communities, and democracy from the growing destructive power of the most powerful economic interests.(202) 683-2500
China's Ministry of Foreign Affairs said the U.S. military's move, ordered by President Joe Biden, "seriously violates international convention."
"The Chinese side clearly requested that the U.S. appropriately deal with this in a calm, professional, and restrained manner," the ministry said, again dismissing the Pentagon's claim that the high-altitude balloon was part of a surveillance operation aimed at monitoring sensitive military sites.
"For the United States to insist on using armed force is clearly an excessive reaction that seriously violates international convention," the ministry continued, invoking force majeure, which under international law refers to unforeseen circumstances that are beyond a state's control. China has claimed the balloon was a civilian weather research aircraft that was blown way off course by unexpected winds.
"China will resolutely defend the legitimate rights and interests of the enterprise involved, and retains the right to respond further," the ministry concluded.
War hawks in the Republican Party, including former President Donald Trump, predictably reacted with hysteria to the Pentagon's Thursday announcement that it detected the balloon over the state of Montana.
"President Biden should stop coddling and appeasing the Chinese communists. Bring the balloon down now and exploit its tech package, which could be an intelligence bonanza," said Sen. Tom Cotton (R-Ark.), one of the most vocal warmongers in Congress. "And President Biden and Secretary Austin need to answer if this was detected over Alaskan airspace. If so, why didn't we bring it down there? If not, why not? As usual, the Chinese Communists' provocations have been met with weakness and hand-wringing."
An unnamed Pentagon official said Saturday that this latest incident is one of several times a Chinese balloon has been detected in U.S. airspace in recent years. The other balloons were not shot down.
"[People's Republic of China] government surveillance balloons transited the continental United States briefly at least three times during the prior administration and once that we know of at the beginning of this administration, but never for this duration of time," the official said in a briefing with reporters.
Tensions between the U.S. and China have risen sharply in recent months, largely over Taiwan. The Biden administration recently announced that it is expanding the U.S. military's footprint in the Philippines, a move widely characterized as a message to China.
As The New York Timesreported Thursday, "A greater U.S. military presence in the Philippines would... make rapid American troop movement to the Taiwan Strait much easier. The archipelago of the Philippines lies in an arc south of Taiwan, and the bases there would be critical launch and resupply points in a war with China. The Philippines' northernmost island of Itbayat is less than 100 miles from Taiwan."
Rep. Michael McCaul (R-Texas) said late last month that the odds of a U.S. war with China within the next two years are "very high," echoing the assessment of the head of the Air Mobility Command.
Far from promoting diplomatic talks with China, Republicans in Congress appear bent on ratcheting up tensions further—and some Democrats are joining them. Last month, with overwhelming bipartisan support, House Republicans established the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party.
Upon her appointment to the panel on Thursday, Rep. Mikie Sherrill (D-N.J.) called the Chinese Communist Party "a threat to our democracy and way of life" and said the select committee represents the "best opportunity to accomplish real results for Americans and respond to China's aggression."
Rep. Mike Gallagher (R-Wis.), the chair of the select committee, has said the panel's goal is to help the U.S. "win this new Cold War" with China.
Nearly two dozen House progressives issued a statement last month opposing the formation of the committee, saying the U.S. "can and must work towards our economic and strategic competitiveness goals without 'a new Cold War' and without the repression, discrimination, hate, fear, degeneration of our political institutions, and violations of civil rights that such a 'Cold War' may entail."
"House Republicans are trying to slash lifelines for middle-class families on behalf of rich special interests," said a White House spokesperson.
The White House on Saturday condemned a newly introduced Republican bill that would repeal the Inflation Reduction Act, a law that includes a number of changes aimed at lowering costs for Medicare recipients.
Unveiled Thursday by freshman Rep. Andy Ogles (R-Tenn.), the bill has 20 original co-sponsors and is endorsed by several right-wing groups, including the Koch-funded organization Americans for Prosperity.
The Biden White House argued that rolling back the Inflation Reduction Act, which also contains major climate investments, would represent "one of the biggest Medicare benefit cuts in American history" as well as a "handout to Big Pharma." According to Politico, which first reported the White House's response to the GOP bill, the administration is planning to release "state-by-state data indicating how this would affect constituents in different areas."
"House Republicans are trying to slash lifelines for middle-class families on behalf of rich special interests," White House spokesperson Andrew Bates said in a statement. "Who on earth thinks that welfare for Big Pharma is worth selling out over a million seniors in their home state?”
The Inflation Reduction Act authorized a $35-per-month cap on insulin copayments for Medicare recipients, as well as an annual $2,000 total limit on out-of-pocket drug costs.
The bill will also, among other long-overdue changes, allow Medicare to begin negotiating the prices of a subset of the most expensive prescription drugs directly with pharmaceutical companies, which fiercely opposed the law and are working with Republicans to sabotage it. The newly negotiated prices are set to take effect in 2026.
Ogles, whose two-page bill would eliminate the above reforms, repeatedly attacked Medicare, Medicaid, and other federal programs and protections during his 2022 campaign for the U.S. House.
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The White House's critique of Ogles' bill comes as Biden is facing pressure from advocates and physicians to cancel a Medicare privatization scheme that his administration inherited from its right-wing predecessor and rebranded.
It also comes as the White House is locked in a standoff with House Republicans over the debt ceiling. Republican lawmakers have pushed for deeply unpopular cuts to Medicare, Social Security, and other critical federal programs as a necessary condition for any deal to raise the country's borrowing limit and avert a catastrophic default.
"In less than a month, MAGA extremists have threatened to drive the economy into a recession by defaulting on our debt, promised to bring up a bill to impose a 30% national sales tax, and now have introduced legislation to repeal the Inflation Reduction Act," Patrick Gaspard, president and CEO of the Democratic Party-aligned Center for American Progress said in a statement. "This will cut taxes for corporations who earn billions in profit while empowering Big Pharma and Big Oil to continue ripping off the American people."
"It is vital that all Americans understand what is at risk if MAGA extremists succeed in passing their latest dangerous idea: millions of lost jobs, millions more without health insurance, and higher costs for lifesaving insulin, utilities, and more," Gaspard added.