Trump Summons Oil Executives to White House Over High Prices

White House Showdown Over Bumper Profits and High Pump Prices

The high-stakes friction stems from a glaring disconnect between plummeting crude oil costs and the stubborn prices drivers continue facing at local service stations. Following economic shocks and supply disruptions tied to the conflict with Iran, gasoline prices soared earlier in the year. Even though crude prices have dropped sharply from their peaks, three of the largest U.S. refiners recently posted a combined $12.6 billion in second-quarter profits, according to Reuters. Marathon, Phillips 66 and Valero reported these massive earnings as gasoline and diesel margins surged and overseas buyers turned to the U.S. for fuel amid global supply disruptions.

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, pump prices sit at their highest level ever for this point in the year. The American Automobile Association reports that August is on track to be the most expensive month on record for that period.

An Uneasy Guest List and the Exclusion of Exxon

The hastily organized White House gathering 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.”

Company official involved in advising attendees, via Reuters

Invited companies span the refining industry, from large integrated oil companies to smaller independent fuel makers, including Marathon Petroleum, Delek US Holdings, Chevron, PBF Energy, and Valero Energy, according to people familiar with the plans. However, notable friction remains evident in who was left off the schedule. Exxon, the nation’s third-largest refiner by capacity, was not invited to Tuesday’s meeting, according to sources. The exclusion follows lingering tension from a January White House meeting where Exxon CEO Darren Woods drew Trump’s ire by calling Venezuela “uninvestable” in its current form, after which Trump said he was inclined to keep Exxon out of Venezuela, accusing the company of playing too cute. The White House did not comment on the attendee list, and Exxon did not respond to requests for comment.

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Lobbying Priorities and Capacity Realities

Despite anxieties over the president’s unpredictable approach, some executives viewed the gathering as a vital opening to lobby the administration directly. 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.”

Unnamed company official, via 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. The White House maintains that the primary objective of the summit is to push for concrete, near-term steps to expand domestic refining capacity. Administration officials argue that years of Democratic policies led to refinery closures and discouraged investment in new facilities and expansions. According to a White House official, the U.S. refining system is currently operating at nearly 100% of existing capacity, 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.