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(CNN) --
US President Joe Biden has called on major oil companies to take "immediate action" to increase supply, telling them in a new letter that "historically high" profit margins are unacceptable at a time. in which Americans continue to see prices rise at the gas pump.
The letter is part of an effort by Biden to deflect blame from rising gas prices, which has become a major political issue, though the reality is that there isn't much he can do about it.
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"In wartime, well above normal refinery profit margins passed directly to American families are not acceptable," the president writes in a letter dated Tuesday and sent to seven companies.
"There is no question that Vladimir Putin bears the main responsibility for the intense financial pain that the American people and their families are enduring. But in the midst of a war that has raised gasoline prices by more than $1.70 a gallon Historically high refinery profit margins are making that pain worse."
He adds: "The lack of refining capacity - and the resulting unprecedented refinery profit margins - are blunting the impact of the historic measures my government has taken to deal with price gouging generated by Vladimir Putin and are driving up costs for consumers.
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The president and his team have acknowledged in recent weeks that there is not much he can do to curb rising prices, and that the measures he has taken so far, such as the record release of oil from the country's strategic reserves, will not they have worked.
OPEC agrees to pump more oil 1:06
Several factors have driven prices higher, including increased demand following Covid-19 lockdowns in previous years and workers returning to offices.
But the White House has mostly tried to focus attention on Russia's war in Ukraine, accusing oil companies of trying to make huge profits from Putin's aggression.
Biden's letter was sent Tuesday to seven oil companies: Marathon Petroleum, Valero Energy, ExxonMobil, Phillips 66, Chevron, BP and Shell.
Although Biden urged companies to take "immediate action to increase the supply of gasoline, diesel and other refined products," the president also said the federal government is willing to use additional emergency powers to increase capacity and production of refineries.
"In addition, my administration is prepared to use all reasonable and appropriate tools of the Federal Government and emergency authorities to increase refinery capacity and production in the short term, and to ensure that every region of this country is adequately supplied." ", write.
"I am willing to use all the tools at my disposal, as necessary, to address the obstacles that prevent us from providing Americans with an affordable and secure energy supply."
Biden writes that he has instructed Energy Secretary Jennifer Granholm to hold an emergency meeting on the issue, as well as to engage with the National Petroleum Council.
Before the meeting, Biden asks the companies to provide Granholm with "an explanation of any reduction in their refining capacity since 2020 and any concrete ideas that may solve immediate inventory, price and refining capacity issues in the coming months, including transportation measures to bring the refined product to market.
"The crisis families are facing deserves immediate action. Your companies need to work with my Administration to come up with concrete, short-term solutions that address the crisis and respect the critical interests of energy workers and nearby communities." Biden writes.
OPEC discusses pumping more oil 1:13
On Wednesday, Granholm told CNN's John Berman on "New Day" that the administration is considering all options to reduce record gasoline prices.
"There has been talk of a number of measures that Congress could take. The Defense Production Act has been on the table and the president has used it in other contexts. But he wants to hear, why he wrote this letter. , it's because you want to hear from these refiners" about high prices, Granholm said, citing "massive profit-taking" by oil companies.
Biden, he said, is "always looking for all the tools," noting that he is also using the Strategic Petroleum Reserve.
Granholm declined to say whether the White House would support an additional tax proposed by Democratic Sen. Ron Wyden of Oregon.
Wyden is proposing a 21% surtax on excessive profits from oil and gas companies that generate more than $1 billion in revenue, according to a spokesman for the senator.
"The president is calling for both increasing oil production in the United States and around the world and increasing refinery capacity, and he's calling them together to say, 'What can we do to help make that happen? ?'".
Granholm said.
Citing the current war situation amid Russia's invasion of Ukraine, he called for supply to be increased in the short term.
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"We ask that, in this time when we are on a war footing, that you consider increasing supply both domestically and internationally," he said, adding that in the longer term, the United States is working to move toward clean energy.
Looking ahead to Biden's trip to Saudi Arabia next month, Granholm said there is "no promise beforehand" that the Saudis will increase energy production.
The energy industry fears a repeat of 2020, when it overinvested in
fracking
exploration and refining at a time when demand evaporated.
Several US energy companies went bankrupt and access to Wall Street money disappeared.
Despite record gasoline prices and rising oil and natural gas prices, the energy industry has been much more cautious about expanding this time.
You also know that regulations and consumer demand will force you to invest in cleaner energy projects.
Meanwhile, others see an opportunity abroad, where energy prices are higher than in the United States and capacity has been further constrained as Europe tries to outrun Russian oil and gas.
In Washington, progressive Democrats, led by Massachusetts Sen. Elizabeth Warren, have called for a windfall tax on energy companies to help offset the rising cost of fuel for Americans.
But with little prospect of it passing Congress, Biden resorts to demanding action that he almost certainly knows the oil companies will reject.
With information from David Goldman and Kate Sullivan.
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