Inslee and legislators say it’s time for “radical transparency” as Big Oil rakes in excessive profits

Big Oil celebrates record profits as consumers grapple with high gas prices and the costly effects of extreme weather events driven by climate change

Gov. Jay Inslee, legislative leaders, and representatives of labor and health care today announced the time has come for Washington state to tackle Big Oil’s record-breaking, excessive profits.

Following “monster profits” in 2022, several oil and gas giants have posted even higher Q1 profits for 2023. Their profits are rolling in at the same time communities everywhere grapple with record heat waves, deadly flooding, drought, wildfires and pollution-related medical conditions that average people and state governments are expected to pay for on top of sky-high fuel prices. Climate-fueled disasters cost the United States $165 billion in 2022.

And yet, spokespeople for these companies are doubling down in defense of high gas prices, saying “it’s not our job to go bankrupt” trying to comply with policies aimed at protecting communities from the brunt of their climate impacts. This same company made $6.6 billion in profits the first quarter of this year — more than twice the profit of Amazon.

Profits for Big Oil busted records in 2022 and continued to go up at the start of 2023. They’re bringing in more profit than Amazon, Tesla and Nike combined.

“We should not yield an inch to these rapacious oil and gas companies that are now using [the Climate Commitment Act] as an excuse,” Inslee said, as he defended the urgency of capping carbon pollution and reinvesting in things like heat pumps and electric buses that benefit communities and children. “Instead we should hold them accountable for their outrageous pricing. We’re not against profits but we’re against price gouging.”

The governor was joined in Burien by Sen. Joe Nguyen, Sen. Rebecca Saldaña, Rep. Joe Fitzgibbon and Rep. Tina Orwall along with representatives from labor and health care. Behind them, electric school buses provide an example of how the state’s Climate Commitment Act will help communities and families transition away from fossil fuels.

Gas prices in Washington have remained stubbornly high in recent weeks, due at least partly to pipeline maintenance issues. Since long before Washington’s climate policies were enacted, the west coast and Washington state have consistently seen some of the highest gas prices in the country — with no transparency as to why oil companies are charging Washington drivers so much more than almost anywhere else. The industry’s shroud of invisibility is precisely why state leaders are calling for legislation.

“What we are asking for today is radical transparency,” said Sen. Joe Nguyen. “We’ve already seen policies in California, we’ve seen policies at the federal level doing similar things… what’s interesting is that the policies in California right when they were being implemented, California gas prices went down, and then Washington state’s went up. Might have been a coincidence, I don’t know. But at the same time, we need to have that radical transparency in here Washington state and that’s what we’re going to bring for this next [legislative session].”

In March, California Gov. Gavin Newsom signed historic price gouging legislation to strengthen transparency in the fossil fuel industry. The policy created an independent watchdog to monitor and investigate questions of market power abuses, and impose penalties when price gouging occurs. Inslee and Nguyen are exploring how similar mechanisms could be used in Washington state.

Footage of today’s press conference is available from TVW.

“I’m tired of my community bearing the brunt of what’s happening with climate change and air pollution… I’m here to stand with [the governor and legislators] and the people, and not the oil companies.” — Yolanda King-Lowe, health care worker and secretary-treasurer of SEIU 1199NW, described the impacts of climate change and air pollution on working families and BIPOC communities.