Home Economy Oil giants’ massive profits revive calls for windfall taxes

Oil giants’ massive profits revive calls for windfall taxes

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  • Sector up on Rising Oil and Gas Prices
  • Reported by 4 of the 5 largest oil companies in the world
  • US President Biden slams energy companies

Oct. 28 (Reuters) – Global energy giants including Exxon Mobil (XOM.N) and Chevron (CVX.N) Rising natural gas and fuel prices have accelerated inflation around the world, leading to renewed calls for additional taxation on the sector.

Four of the world’s five largest oil companies have reported earnings, with combined net earnings of nearly $50 billion. This was boosted by tight global markets and turmoil after Moscow’s invasion of Ukraine.

Tax more taxes on businesses to raise money from politicians and consumer groups to offset the hit of rising energy costs to households, businesses and the economy at large for huge gains. The calling voice has been revived. They also criticize the big oil companies for not increasing production enough to offset rising fuel and heating costs.

In an interview with Reuters, Pierre Breber, Chevron’s chief financial officer, warned that “taxing production only reduces output.”

The company reported the second-highest profit of $11.2 billion. But the company’s global production is down sharply this year from his year ago, and other U.S. oil companies have already seen production fall in the U.S. shale region, which produces the most. It suggests that

“Raising costs for energy producers would reduce investment, thus defeating the purpose of having more suppliers to make energy more affordable.”

U.S. President Joe Biden, who said earlier this year that Exxon “makes more money than God,” told oil companies this month that it wasn’t doing enough to bring down energy costs.

hours after shell (shell) Quarterly earnings were reported at $9.45 billion and it raised its dividend by 15% on Thursday, but Biden said the company is misusing its profits.

On Friday, he tweeted in response to comments from Exxon’s CEO, saying, “Giving profits to shareholders is not the same as lowering the price of American families.”

In the UK, COP26 climate summit chair Alok Sharma said on Friday that Prime Minister Rishi Sunak’s government should consider extending the windfall tax on oil and gas companies.

“These are excessive profits and must be treated in an appropriate manner when it comes to taxation,” Sharma said.

Shell CEO Ben Van Baden said the energy industry “needs to be prepared and accept” that it will face tax increases to help struggling segments of society. Shell posted more than $9 billion in earnings in the third quarter, and is on track to surpass its 2008 record annual profit of $31 billion.

Reuters Graphics


Exxon Mobil, the largest US major, reported a net profit of about $20 billion in the quarter ending September, surpassing expectations and surpassing the previous record set just three months ago.

Exxon leads the five oil majors in overall revenue, nearly double that of peers Shell and TotalEnergys. (TTEF.PA) in the quarter. Exxon’s stock has lagged those companies’ stocks for several years, and is expected to drop by 2022, despite not making the same commitments as its European competitors to increase spending on renewable energy. recovered to BP (BP.L)the fifth major will report results next week.

Exxon CEO Darren Woods said, “While other companies retreated, retreated and contracted in the face of uncertainty and a historic recession, this company advanced and contracted. We continue to invest,” he said.

All five major stocks posted total returns of at least 29% this year. Exxon leads the way with his 86% increase, and the S&P 500 has a broad market entry. (.SPX) Data from Refinitiv Eikon shows a negative 19% annual total return.

After Russia halted most of its natural gas exports to its main customer, continental Europe, European governments rushed to fill their gas reserves.

On Friday, Norway’s Equinor also broke new ground, aided by all-time highs in European gas prices and Italy’s Eni. (ENI.MI) It nearly tripled its profit a year ago and beat consensus with a profit of €3.73 billion ($3.72 billion). France’s Total Energies reported his record $10 billion profit on Thursday.

“Russia’s war in Ukraine has transformed energy markets, reducing energy availability and increasing prices,” Equinor CEO Anders Opedal said in a statement.

Reporting by Sabrina Valle in Houston and Ron Bousso in London Additional reporting by Francesca Landini, Nerijus Adomaitis and Nora Bull Writing by David Gaffen Editing by David Evans, Kirsten Donovan and Matthew Lewis

Our criteria: Thomson Reuters Trust Principles.

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