By Jarrett Renshaw
Aug 31 (Reuters) – President Donald Trump has accused U.S. oil refiners of gouging Americans, called for a Justice Department investigation and urged companies to use their bumper earnings to bring down gasoline prices that spiked amid the ongoing conflict with Iran.
On Tuesday, he is expected to host many of those companies at the White House to celebrate efforts to keep the market well supplied in hopes of managing gasoline prices currently averaging over $4 a gallon.
The timing has created an unusual calculation for executives. Companies received invitations only late last week, with few details about the event or even who else would attend, according to people familiar with the plans, leaving some to consider whether sending their CEOs could turn a traditional White House meeting into an uncomfortable encounter with an unpredictable president.
“You want to be at the table, but you also have to think about what could happen once you’re there. You don’t want your CEO to be embarrassed,” said one company official involved in advising what executives would attend.
Another company official said there were some concerns about the event, but the gathering also offered executives a rare opportunity to raise issues directly with Trump, including the administration’s biofuel policy and the Jones Act, which can affect the cost and availability of fuel shipments between U.S. ports.
“There are certainly concerns about the optics, but you also don’t want to miss an opportunity to have a direct conversation with the president about issues that are important to the industry,” the official said.
There is reason for caution.
At a White House meeting in January, Exxon CEO Darren Woods drew Trump’s ire by calling Venezuela “uninvestable” in its current form. Trump later said he was “inclined to keep Exxon out” of Venezuela, accusing the company of “playing too cute.”
Exxon, the nation’s third-largest refiner by capacity, was not invited to Tuesday’s meeting, according to sources. The White House did not comment on the attendee list, and Exxon did not respond to requests for comment.
Invited companies span the refining industry, from large integrated oil companies to smaller independent fuel makers. They include Marathon Petroleum, Delek US Holdings, Chevron, PBF Energy and Valero Energy, according to people familiar with the plans.
None of the companies responded to requests for comment about any concerns over attending the meeting.
EXPANDING REFINING CAPACITY
The White House says the meeting will focus on expanding U.S. refining capacity, arguing years of Democratic policies led to refinery closures and discouraged investment in new facilities and expansions. The U.S. is operating at nearly 100% of its existing refining capacity, a White House official said, leaving the administration focused on “concrete, near-term steps” to increase capacity and ultimately lower gasoline prices for consumers.
The meeting comes as the administration works to increase flows of Venezuelan crude to U.S. refineries, the official said.
Trump has made cheaper energy a centerpiece of his economic agenda, but has increasingly trained his ire on refiners as pump prices have remained elevated, accusing them of profiteering even as he courts their support for his broader push to expand U.S. energy production.
Gasoline prices have remained elevated throughout much of the year, surging after the Iran conflict began in late February and climbing above $4 a gallon in the spring. Heading into the Labor Day weekend, prices are at their highest level ever for this point in the year, with the American Automobile Association saying August is on track to be the most expensive for that month on record.
U.S. refiners enjoyed bumper profits in the second quarter as gasoline and diesel margins surged and overseas buyers turned to the U.S. for fuel as global supplies were disrupted. Marathon, Phillips 66 and Valero — three of the largest U.S. refiners — reported a combined $12.6 billion in second-quarter profits, according to Reuters.
Stephen Brown, a former Washington energy lobbyist and consultant who has advised CEOs on presidential politics, said he would not recommend sending a CEO to the event given Trump’s treatment of the industry in recent months.
“This event is a made-for-TV moment, strictly performative, that can only embarrass the company,” Brown said.
(Reporting By Jarrett Renshaw; Editing by Nathan Crooks and Chris Reese)
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