{"id":217485,"date":"2022-08-08T12:00:13","date_gmt":"2022-08-08T11:00:13","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=217485"},"modified":"2025-01-10T15:06:38","modified_gmt":"2025-01-10T15:06:38","slug":"skyrocketing-oil-and-gas-profits-hit-14-year-high","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2022\/08\/skyrocketing-oil-and-gas-profits-hit-14-year-high\/","title":{"rendered":"Skyrocketing Oil and Gas Profits Hit 14-Year High"},"content":{"rendered":"

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28 Jul 2022 – <\/em>Skyrocketing fuel costs and high margins on oil refining are driving the world\u2019s biggest fossil companies to their biggest profits since at least 2008, according to analysis released just days after a blockbuster report that showed the oil and gas industry taking home $2.8 billion per day in revenue over the last 50 years.<\/p>\n

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The five biggest publicly-trade fossils\u2014ExxonMobil, Chevron, Shell, Total\u00c9nergies, and BP\u2014\u201care set to make even more money than they did in 2008, when international oil prices jumped as high as US$147 a barrel,\u201d Bloomberg Markets reports<\/a>. \u201cThat\u2019s because it\u2019s not just crude that has soared during the crisis created by Russia\u2019s invasion of Ukraine, natural gas prices and refining margins have also broken records.\u201d<\/p>\n

The news report cites Exxon profits rising 46% this year. Total has gone up a relatively modest 11%, but that\u2019s still at a time when the wider Standard & Poor\u2019s stock index is down 17%. The general trend recently had U.S. President Joe Biden complaining that Exxon makes \u201cmore money than god\u201d and accusing fossil companies of exploiting high gas prices, Bloomberg recalls. The UK recently imposed<\/a> a 25% levy on oil and gas profits, albeit with a side deal that offered tax incentives for new oil extraction.<\/p>\n

Just a week ago, citing research by University of Antwerp energy economist Aviel Verbruggen based on World Bank data, the Guardian said<\/a> Big Oil has pocketed a mind-bending $52 trillion in profits since 1970. \u201cYou can buy every politician, every system with all this money, and I think this happened,\u201d Verbruggen said, contending that the trillions in profits pocketed by Big Oil since the 1970s have been weaponized to maintain the fossil status quo.<\/p>\n

But even if this year\u2019s results are reinforcing the trend, fossil CEOs are talking down investors\u2019 hopes for the high returns they\u2019ve typically expected on their oil and gas investments, Bloomberg says. \u201cThe soaring earnings are a direct result of the high energy prices that have stoked inflation, piled pressure on consumers, raised the risk of recession, and prompted calls for windfall taxes,\u201d the more recent news story states. \u201cAmid this political and economic turbulence, shareholders may have to temper their expectations for rising returns.\u201d<\/p>\n

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[Alisdare Hickson \/ CC BY-SA 2.0]<\/p><\/div><\/div>\n

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Part of that caution is a sense that today\u2019s industry profit margins can\u2019t last. Refining now makes up 26% of the sky-high cost of gasoline in the United States, compared to an average of 14% over the last decade, and Bloomberg says Shell is expecting $1 billion in profit from its global refining operations alone. But with consumers hurting, analysts are watching for gasoline demand to dampen and drive down prices.As a result, at least some of the top five fossils look unlikely to hand investors the higher returns they crave. The news agency says Exxon will use its winnings to pay off some of its debts, while Chevron may speed up a program to buy back shares from shareholders.<\/p>\n

The numbers also indicate that fossil companies won\u2019t be directing their profits to new exploration or extraction projects. Although capital expenditures may soon be driven up by inflation, colossal fossils are generally \u201cspending much less than they did the last time oil was above $100 a barrel,\u201d Bloomberg says. \u201cCapital expenditures is creeping to a forecast of $80 billion this year, but that\u2019s half the level of 2013.\u201d<\/p>\n

Go to Original – theenergymix.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

28 Jul 2022 – Skyrocketing fuel costs and high margins on oil refining are driving the world\u2019s biggest fossil companies to their biggest profits, according to a report that showed the oil and gas industry taking home $2.8 billion per day in revenue over the last 50 years. The five biggest\u2014ExxonMobil, Chevron, Shell, Total\u00c9nergies, and BP\u2014\u201care set to make even more money than they did in 2008.<\/p>\n","protected":false},"author":4,"featured_media":51946,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[1441,232,686,550,555,401,562,1098,993,626,894,2060,1213,1160],"class_list":["post-217485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-capitalism","tag-big-oil","tag-capitalism","tag-climate-change","tag-corruption","tag-elites","tag-environment","tag-finance","tag-fossil-fuels","tag-global-warming","tag-greed","tag-pollution","tag-profits","tag-super-rich","tag-world-order"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/217485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=217485"}],"version-history":[{"count":1,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/217485\/revisions"}],"predecessor-version":[{"id":284608,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/217485\/revisions\/284608"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media\/51946"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=217485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=217485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=217485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}