August 8, 2022

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Thanks to the war, the giant American oil companies triple their profits

The largest oil companies in the United States saw profits nearly triple in the second quarter of 2022, thanks to the fallout from the war.

Russia’s war in Ukraine has boosted global energy markets and forced consumers to scale up to offset higher pump prices.

On Friday, ExxonMobil Corp. reported net profit of $17.9 billion for the three months ended June 31, up from $4.7 billion in the same period last year; Revenue was $111 billion, up 68% over the same period.

Meanwhile, Chevron posted a profit of $11.6 billion in 2021, compared with $3.1 billion in 2021. Sales were $64 billion, up 80% from last year.

The huge results came a day after Europe-based Shell also posted a record profit, as the three companies and France’s Total Energies combined earned nearly $51 billion in the second quarter, more than double what they achieved in the same three months from 2021. .

Sanctions on Russia

The impressive results achieved by US energy companies are related to the West’s efforts to punish Russia for attacking Russia by cutting off its energy sales.

Crude oil prices, which slumped in the early months of the coronavirus pandemic, are now 37% higher than a year ago.

Energy companies have thrived this year while the rest of Wall Street has been hit hard; While the broader S&P 500 fell 14%, Vanguard’s Energy Index, an exchange-traded fund of oil companies, rose 37% year-to-date.

Exxon and Chevron shares rose 51% and 36%, respectively; When the average price of a gallon of gasoline in the U.S. exceeded $5 for the first time in June; Last Friday, it was recorded at $4.26.

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Consumers’ gasoline bills rose about 49% in June after rising 20% ​​in May, the Bureau of Economic Analysis reported Friday.

President Biden has faced criticism from the right over his handling of inflation and the economy, calling for Exxon to end its profiteering while he and Chevron implored Chevron to redouble its efforts to bring more oil to market.

The United States is the world’s largest consumer of crude oil with an average of 17 million barrels per day, the second largest importer with an average of 6.2 million barrels per day, and its largest producer. An average of 11.8 million barrels per day.