The world’s oil companies have since recovered pandemic It was the highest profit ever made since people started using oil.
Chevron, ConocoPhillips, Exxon and Shell all reported record profits in 2022. russian ukrainian war It collided with the post-pandemic economic recovery, pushing oil prices to all-time highs.
Last year, the four companies had combined sales of $1 trillion, more than the combined economic output of Colombia, South Africa and Switzerland. TotalEnergies and BP are due to report their 2022 financial results next week.
The record profits came a year after gas prices soared. After a sharp drop in 2020, global oil and gasoline consumption recovered much slower than production, putting pressure on gas prices.Russia’s invasion of Ukraine a year ago cut global oil supplies further reduced, resulting in the average price of gas in the United States $5 or more per gallon in spring and summer.
Shell reported on Thursday that it made about $40 billion in profit last year. That’s more than double his previous year’s result and the highest amount Shell has ever earned in his 115-year history. Chevron, her second-largest oil company in the United States, posted record earnings. $36.5 billion Last year, refiner ConocoPhillips doubled its profits to $18.7 billion, the highest in a decade since it spun off its refining business.
Exxon, the largest US oil producer, this week reported a spectacular $55 billion profit in 2022. The oil giant’s earnings “clearly benefited from a favorable market,” CEO Darren Woods told investors. He also touted Exxon’s investments before and during the pandemic. This allowed us to ramp up production as demand surged.
“When others leaned in, we leaned in and broke the conventional wisdom,” Woods said.
The windfall will make Exxon the third most profitable company in 2022, behind Apple and Microsoft, according to Wall Street. journal.
In addition to higher oil prices, higher natural gas prices and higher refining profit margins have also boosted oil company profits, said Peter McNally, industry and energy analyst at Third Bridge.
The White House and environmentalists are blaming oil companies for surging profits. The White House has accused fossil-fuel companies of not increasing production to keep gas prices down, and last year imposed a tax on oil and gas profits.
A White House spokesperson called Exxon’s record profits “outrageous.” BBCSpokesperson Abdullah Hasan also condemned Chevron’s announcement that it will spend $75 billion to buy back shares from investors.
“The company clearly has everything it needs to ramp up production, including record profits and thousands of approved permits. It’s their own decision to keep pushing,” Hasan said. murmured.
“As economies around the world face recession, a windfall tax on oil and gas profits will be released to free up much-needed money to help those struggling with the cost of energy. They are needed more than ever,” Jonathan Noronha Gant Advanced Campaign Global Witness told The Associated Press.
Some jurisdictions, including the European Union and the United Kingdom, impose such taxes on the surplus profits of energy companies, using the proceeds to meet the skyrocketing energy costs of their citizens. December, Exxon appealed to stop EU tax.
“Looking at what happened in the EU, it’s not legal, it’s the opposite of what is needed,” Woods said Tuesday.
Oil companies have made a remarkable turnaround since 2020. A year when travel stopped, demand for fuel evaporated, dozens of oil and gas companies filed for bankruptcy protection, and thousands of industrial workers worked. dismissedExxon lost $22 billion that year.
In addition to oil drilling operations that went offline in 2020, refining capacity also declined, contributing to higher gas prices and refining margins.
“The refining business soared to record levels, especially in the United States,” said McNally, an analyst at Third Bridge. Marathon Petroleum, America’s largest independent refiner, posted record profits, while ExxonMobil and Chevron also compete in refining.”
Associated Press contributed to the report.