(The Hill) – Not everyone is suffering from high gas prices that have spiked further with Russia’s invasion of Ukraine and the international sanctions imposed on Moscow.
Some players, including the U.S. oil producers, stand to gain financially. And countries such as Saudi Arabia stand to gain both monetarily and politically.
On Friday, U.S. oil prices stood at around $106 per barrel, while international benchmark Brent crude cost $110 per barrel. Gas in the United States costs $4.33 per gallon on average.
Here’s a look at who is benefitting — or could benefit — from the spike.
Companies that drill for oil
As oil prices rise, producers can get more money for their product.
“Oil drillers and producers — it’s a grand slam for them right now,” said Patrick De Haan, head of petroleum analysis at GasBuddy, a gasoline price-tracking website.
He said the industry is essentially in the opposite position of where it stood in 2020 when the coronavirus pandemic crushed demand.
Claudio Galimberti, senior vice president of analysis at Rystad Energy, said all types of producers, except those in Russia, stand to gain.
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“Biggest winners in this price environment are the producers – all of them, Shale, Canadian, onshore, offshore, etc. apart from the Russian ones, of course,” he said in an email.
The fact that these companies can profit has spurred left-wing criticism and some accusations of price gouging.
“American oil and gas companies should not exploit this moment to hike their prices to raise profits,” President Biden said last month.
Rep. Ro Khanna (D-Calif.) and Sen. Sheldon Whitehouse (D-R.I.) this week announced legislation that would impose a tax on major oil companies based on the difference in oil prices between pre-pandemic years and now. But the bill faces resistance from Republicans and moderate Democrats and faces an uncertain future.
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