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| Economy |
| Oil company profits boom as Americans reel from high fuel prices |
| 2022-07-30 |
| [Guardian] The US’s biggest oil companies pumped out record profits over the last few months as Americans struggled to pay for gasoline, food and other basic necessities. On Friday, ExxonMobil reported an unprecedented $17.85bn (£14.77bn) profit for the second quarter, nearly four times as much as the same period a year ago, and Chevron made a record $11.62bn (£9.61bn). The sky-high profits were announced one day after the UK’s Shell shattered its own profit record. Soaring energy prices have rattled consumers and become a political flashpoint. "We’re going to make sure everybody knows Exxon’s profits," Joe Biden said in June. "Exxon made more money than God this year." The record profits came after similarly outsized gains in the first quarter when the largest oil companies made close to $100bn in profits. High energy prices are one of the leading factors driving inflation to a four-decade high in the US. Gas prices have fallen slightly in recent weeks but are now averaging $4.25 a gallon across the US, more than $1 a gallon higher than a year ago. Consumers are facing high fuel prices not just at the pump. Soaring energy prices are being baked into delivery costs, which is driving up the cost of everything from apples to toilet paper. One reason gasoline prices have been so high is that fewer refineries are operating in the US than before the pandemic, so there is a limit to how much gasoline can be produced. Biden has called for the companies to increase production and refining capacities in an attempt to bring down prices. On Friday Exxon said it was expanding refinery and production in Texas and New Mexico. Exxon, based in Irving, Texas, increased its oil and gas production as crude prices hovered above $100 a barrel. Revenue at Exxon soared to $115.68bn, up from $67.74bn during the same quarter last year. Natural gas and liquefied natural gas (LNG) prices are also elevated due to Russia’s invasion of Ukraine and ensuing sanctions against Russia, a large supplier of natural gas. Many European nations have been scrambling for alternatives to Russian natural gas, and have been competing for boatloads of LNG, driving up prices for natural gas globally and in the US. In addition to oil company executives, shareholders also reaped the benefits of high energy prices during the quarter. Since the start of 2022, Exxon and Chevron shares have risen close to 46% and 26%, respectively. |
| Posted by:Besoeker |
| #13 After 12 years in the oil industry I can tell you that the numbers on paper aren't reality. Because you need to explore and deal with delays, those profits vanish when a hurricane ends drilling for 3 weeks and the rigs have to flee or a drill string gets stuck down hole and costs you an extra 5-6 million to deal with. Operating costs in this industry are HIGH. |
| Posted by: Silentbrick 2022-07-30 21:34 |
| #12 "Figures don't lie, but Liars 'figure'." As the old saying goes... |
| Posted by: magpie 2022-07-30 16:43 |
| #11 And we all know how Democrats hate profits. |
| Posted by: Abu Uluque 2022-07-30 12:05 |
| #10 It is nearly word for word a Daily Mail article about a month and a half ago explaining why their energy producers are having record profits at consumer expense so taxes need to be raised to give consumers tax relief on energy prices. |
| Posted by: swksvolFF 2022-07-30 11:10 |
| #9 I question the veracity of the source, and the Grauniard. |
| Posted by: Whiskey Mike 2022-07-30 11:05 |
| #8 Always fail to mention Gross or Net, and post-tax. But the War of Kyeeeev! But like what Raj hits at...how are Pharmaceuticals, Military, and The Big Guy industries doing? |
| Posted by: swksvolFF 2022-07-30 10:10 |
| #7 Number two squarely nails it. There is probably nothing taxed more heavily than the oil and gas industry. Permit to well head, to refinery, to gas station, to consumer. Off-shore and gov't lands are even more lucrative for our D.C. masters. |
| Posted by: Besoeker 2022-07-30 10:04 |
| #6 Is 'the big guy' getting his 10% from "The Big Guy"? How else would he know how much money God makes? |
| Posted by: Bobby 2022-07-30 09:39 |
| #5 "Exxon made more money than God this year." What does God need with |
| Posted by: Raj 2022-07-30 09:34 |
| #4 The fastest way to lose money in the oil business is to drill a dry hole. With drilling shut down, the oil companies are turning to the aspects of their operations that they can operate, and those are making unusual profits in the current distorted market. |
| Posted by: M. Murcek 2022-07-30 09:13 |
| #3 Given, we are told we are using LESS Oil/Gas/Diesel at double the price. Are these earning figures Mathematically possible WITHOUT some slick industry manipulation ? |
| Posted by: NN2N1 2022-07-30 08:32 |
| #2 I figger they're talking about pre-tax profits, so the government gets half, amirite? |
| Posted by: Bobby 2022-07-30 07:43 |
| #1 Supply and demand-101. Limit the supply, the price on whatever is available goes up. |
| Posted by: Besoeker 2022-07-30 04:20 |