Major oil companies generating record profits – global energy geopolitics

If you listened during your last refueling at your favorite gas station, you must have heard champagne corks popping at almost every oil extraction company.

Although the barrel has passed the $100 mark, it’s a party to the point of increasing share buybacks in order to artificially boost prices (and bonuses) and dividends. Want to know where some of your gas money goes and how oil companies fund lobbies and politics? Overview.


For those who are frightened by the numbers, it should be noted that the business of a large oil company is not to extract oil, but to generate profits, distributing them to shareholders who will continue to invest even more to continue the virtuous circle.

The higher the price of a barrel, the higher the margins.

PAN

In the first quarter, its earnings totaled $6.2 billion, the highest since 2008 and double last year. That figure does not include the slate that the British giant owes in its hasty exit from Russian deposits. The company will buy back 4.2 billion of its shares.

BP will invest up to US$23 billion in Britain’s energy system by the end of 2030. Of the US$25 billion in earnings forecast for this year, BP expects to pay US$1.5 billion in taxes on its oil and gas in the North Sea this year, which is ridiculously low.

Sir Keir Starmer, leader of the UK opposition Labor Party, said that “BP’s profits bolstered the case for an extraordinary tax on British North Sea oil and gas profits.

Bernard Looney, CEO of BP, told the Financial Times “that he understood that many families were “really struggling” and that BP’s role was to return money to shareholders (note: which does not include households in difficulty)including millions of British retirees, to pay taxes and invest in Britain’s energy system.”

Shell

The company moved its center from the Netherlands to England to pay even less tax. Since the Netherlands is a tax haven!

Profit totaled $8.7 billion in the first quarter. Shell talked a lot about renewable energy, but hey, here we go back to the basics.

The withdrawal of its investments in Russia will cost US$ 5 billion and, above all, millions of barrels of oil and m³ of gas.

Total Energy

The group generated $4.9 billion in profit in the quarter. The company will buy back 3 billion of its shares, but will also keep the dividend increase management had promised shareholders. Isn’t France a paradise for shareholders?

To pass the pill to drivers at their stations, the group reduced the selling price. Some call this unfair competition.

Total has written in its accounts for the first half of 2022 a provision of US$ 4.1 billion for its withdrawal from the liquefied natural gas project in Siberia, of which the company holds 10% (21.64% including its shares in the Russian giant of Novatek gas).

ENI

Claudio Descalzi, CEO of the Italian company, is delighted with a profit of €3.27 billion with extractions of 1.65 million barrels per day (-3% compared to the same period in 2021). Gas represents 930 million in profits.

This month, Eni reached an agreement to increase pipeline gas imports to Italy from Algeria to 9 billion cubic meters a year by 2023-24.

In Egypt and the Republic of Congo, the Italian energy group aims to increase liquefied natural gas exports by 3 billion and 4.5 billion cubic meters per year, respectively.

ExxonMobil

The American posted its best quarter since 2012 with $5.5 billion, which includes 3.4 billion losses from its shares in Russia. The Siberian deposit of Sakhalin-1 extracts 220,000 barrels a day.

Revenue rose to $90.5 billion. Exxon’s capital and exploration expenditures for the first quarter totaled $4.9 billion.

Exxon bought back 2.1 billion of its shares. The goal is to buy back 30 billion shares by 2023, that is, if the system is profitable.

We had a solid quarter looking at the underlying performance of the business, putting aside temporary weather and calendar impacts, and we are building on our momentum in the second quarter.“says Kathy Mikells, Exxon’s chief financial officer.

chevron

the second largest American oil company announces a profit of US$ 6.5 billion, 4 times more than in the same period in 2021. Like Exxon, it is the best quarter since 2012 with revenues of US$ 54 billion. CEO Michael Wirth announces dividends of $3.36 per share.

In the Permian Basin shale deposit, the volume is 692,000 bopd (+15%).

In the US, US President Joe Biden has urged domestic oil producers to increase production to lower prices at the pumps, which are fueling the highest inflation the US has seen in 40 years. Joe releases 1 million barrels a day of oil from the strategic reserve. Duration: 180 days.

Finally, let’s leave the last word to Nancy Pelosi: “The big oil companies took advantage and exploited the market…“.

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