The biggest oil and gas companies are prepared to report annual profits, raking in extraordinary revenues after a year of volatile fossil fuel prices and Russia’s assault in Ukraine.
In the coming days, the Big Oil companies will release their final quarterly results. Chevron, BP, Exxon Mobil, TotalEnergies, and Shell should report a total profit of $190B for 2022.
With plenty of cash, the energy titans plan to reward shareholders by increasing dividends and repurchasing shares.
Joe Biden has previously charged that oil companies are profiting from the conflict while refusing to assist in bringing down gas prices for American motorists.
According to Exxon Mobil spokesperson Erin McGrath, higher energy prices are “largely the result of a supply-demand imbalance,” and the company’s investments over the last five years are driving quarterly results.
Success, according to Exxon, “is a ‘and’ equation, one in which we can produce the energy and products society needs—and—be a leader in reducing greenhouse gas emissions from our operations and those of other companies.
The Big Oil profits are a sort of payback within the industry. During the height of the 2020 lockdowns, oil demand plummeted, and the energy giants came under intense pressure from shareholders and activists to make investments in clean energy.
However, the green reform campaign came to a halt in 2017.
In response to calls for a swift switch to renewable energy sources, the oil and gas industry has sought to emphasize the significance of energy security, typically highlighting the ongoing high demand for fossil fuels.
Europe Has Tamed Its Energy Cravings
Europe has broken free from its dependence on energy. Due to the conflict in Ukraine, Russian gas exports to the EU27 significantly dropped last year. As a result, people and businesses had to find more cost-effective ways to use energy. However, the prospect of gas mask preservation success is more ominous for European businesses.
According to data from the European Commission, the European Union used 412B cubic meters (bcm) of gas in 2021. According to the International Energy Agency, that figure fell by around 50B cubic meters last year, or 12%. Part of the drop might be due to efforts by families and businesses to limit rising gas prices.
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