consumers. that s the best thing to do right now. daniel, do you see that as a solution? that may help alleviate some of the short-term pain. tapping the reserve have resulted in some lower prices. a little history here is useful. in the 2010s multiple boone cycles of drilling in the shale patch. companies were so successful they lowered prices over the years and most lost money. investors are now demanding that companies like those who are testifying today limit their drilling and focus on only producing the most profitable sites and deliver a return. this is why we are seeing more share buybacks and capital discipline because they have not been profitable in recent years and investors are looking for a return to profitability as they are in any other sector of the economy. but they are making profits. we just reported about exxon s profit, that it could be record
quarterly profits could total $11 billion. profits. the highest in a decade. the company s ceo insisted the jump in profits has nothing to do with price gouging. no single company sets the price of oil or gasoline. the market establishing the price based on available supply and the demand for that supply. continued investments in new production is the only way to achieve balanced markets and more affordable prices that bring real relief at the pump. let s discuss with robert reich, former labor secretary and professor of public policy and daniel rainy, fellow at resources for the future. gentlemen, thanks for being with us. secretary reich, your reaction to what we just heard from the head of exxon essentially saying don t blame us. well, i d be skeptical. the reason is oil companies are
gouging. that should not be allowed. the best, immediate way of dealing with that. several governors have implemented gas tax holidays and estate gas tax average is 39 cents per gallon, so subtract that from the price of the pump . what do you think of that idea, daniel? i think that s a short sided solution to a longer term problem. transportation funding, including especially at the federal level, has fallen well short of what we ve needed in recent years because gasoline taxes have been too low both at the federal level and at the state level. if we want to be serious about addressing our transportation infrastructure and addressing climate change, the answer is not lower gas taxes or gas tax holi holidays that set long-term structural problems we have to deal with in the future.
daniel, we know it s complicated but can you just boil it down, is greed from oil companies to blame for the high prices right now? you re right. it is complicated. viewers at home and americans, especially low-income households, are suffering from the high energy prices. the finger pointing we see in congress from both sides is shedding more heat than light. there are literally thousands of oil and gas producers in the united states, some of them very large, most very small, and they do not set prices. oil prices and gasoline prices are really set by global market forces. today s high prices are mostly driven by market fundamentals and the russian invasion of ukraine. the best way to reduce exposure is to gradually reduce oil consumption and move towards an economy that s less reliant on fossil fuels which have the benefit of addressing climate