Exclusive: oil companies' profits soared to $174bn this year as US gas prices rose

[mysteryowl]

Source: The Guardian/US

Exxon, Chevron, Shell and BP among group of 24 who resisted calls to increase production but doled out shareholder dividends.
The largest oil and gas companies made a combined $174bn in profits in the first nine months of the year as gasoline prices climbed in the US, according to a new report.

The bumper profit totals, provided exclusively to the Guardian, show that in the third quarter of 2021 alone, 24 top oil and gas companies made more than $74bn in net income. From January to September, the net income of the group, which includes Exxon, Chevron, Shell and BP, was $174bn.

Senator Schumer Holds a Press Conference on Rising Gas Prices in New York, US - 14 Nov 2021Mandatory Credit: Photo by Ron Adar/SOPA Images/REX/Shutterstock (12603254k) A driver fills up a vehicle's gas tank at a Mobil gas station on 8th Avenue in the West Village in New York City. Standing in front of a Mobil gas station on 8th Avenue in the West Village where prices start at $4.33 a gallon of 87 octane gasoline, Senate Majority Leader Chuck Schumer (D-NY) says New York drivers desperately need relief from surging fuel prices. Senator Schumer hopes tapping into the nation's Strategic Petroleum Reserve would help reduce fuel costs for a while. Senator Schumer Holds a Press Conference on Rising Gas Prices in New York, US - 14 Nov 2021
Biden to release 50m barrels of oil in effort to bring down rising US gas prices
Read more

Exxon alone posted a net income of $6.75bn in the third quarter, its highest profit since 2017, and has seen its revenue jump by 60% on the same period last year. The company credited the rising cost of oil for bolstering these profits, as did BP, which made $3.3bn in third-quarter profit. “Rising commodity prices certainly helped,” Bernard Looney, chief executive of BP, told investors at the latest earnings report.

Gasoline prices have hit a seven-year high in the US due to the rising cost of oil, with Americans now paying about $3.40 for a gallon of fuel compared with around $2.10 a year ago.

Read more: https://www.theguardian.com/business/2021/dec/06/oil-companies-profits-exxon-chevron-shell-exclusive

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I had an idea the high gas prices was a result of big oil stealing from people.

[multigraincracker]

1. Putin and the Saudies

are smiling too.

[AllaN01Bear]

2. and these "investigations" dissapear , never to be heard from again.

[durablend]

3. Yup

And as gas prices dropped, they're still raking it in by keeping pump prices up.

[Claustrum]

4. Not hard to imagine. Part of the "inflation" is definitely going to more corporate profits.

I said it weeks ago when inflation was a hot topic for the media. We will find out soon that every corporation will post their best earning. They never have a time where they can raise their prices without much pushback from consumer. Everyone see raising prices and then blame "inflation". Yes, there is inflation but it's definitely not the only reason for our price increase.

[Mr. Sparkle]

5. A Windfall tax of $175 Billion would be nice.

we all have to do our bit during the pandemic

[Tactical Peek]

6. What this country needs is a Windfall Profits Tax.

We did it during the 80s and this time, besides the fossil fuel barons, it can apply to big pharma and to big tech so that some of those outsized gains can benefit the society in which they occurred.

[Deuxcents]

7. Let's keep giving them subsidies

They need it

[PatrickforB]

8. No surprise. Just another capitalist gouge.

Profits over people every time. Curtail supply, raise prices, provide dividends to shareholders.

[melm00se]

9. yet for Exxon

all of this year's net income does not meet the loss that Exxon had in Q4 last year.

$15B in Q1-3 net income vs. ($20B) in Q4.

But that gets glossed over in righteous indignation.

Also the thing that gets ignored is what is the net profit margin (net income divided by total revenue).

Going back to Exxon: their Q3 net profit margin is ~9%.

Go to the financials of your most favored publicly traded companies and do the math yourself.

Go to Yahoo finance, enter the company and find the "Financials" tab, then select "Income Statement". Find "Total Revenue" and "Net Income..." and divide Net Income into Total Revenue.

That is how many pennies per dollar the company made in profit.

[EX500rider]

15. Exactly it sounds like a lot but what was the total sales volume

Last time I looked at Exxon when they made around 17 billion in profit it turned out to be about 4%
Not what I consider a good return

[MissMillie]

10. Heard on NPR this morning...

that wages increased 4% in the last year.... a WHOPPING 4%!!!!!!

Same report said that economist think that this 4% increase in wages is what will keep inflation high. (apparently the high cost of oil/gas and the huge increases in corporate profit have nothing to do with inflation)

[Alexander Of Assyria]

11. Of course they did. Slashed taxes when Exxon chief in political power. Now they all

collude on the faux narrative there is an oil shortage.

If there is, won’t be after Iran enters the marketplace.

And who do you think these grateful wretches will openly and secretly tithe for the corruption of the tax system in their favour?

Can we at least stop subsidizing them? What happened to the concept of a mineral royalty…on the peoples minerals and base elements, don’t forget, after they were gods.

[Journeyman]

12. That makes up a little for what they lost in 2020 . . .

Wouldn't it be nice if the rest of us could recoup our 2020 losses by jacking prices. Oh wait, many other companies are doing exactly that!

[marble falls]

13. Why are we subsidising thier exploration with tax money? Why aren't they paying their fair share?

[BumRushDaShow]

14. This is why the President had announced the belows last month

Biden calls on FTC to probe anti-consumer behavior by energy companies as gas prices soar

Published Wed, Nov 17 202110:20 AM EST Updated Wed, Nov 17 202111:39 AM EST

Pippa Stevens
@PippaStevens13

President Joe Biden is asking the Federal Trade Commission to look into behavior from energy companies as prices at the pump hover around a seven-year high. In a letter to Chair Lina Khan Wednesday, Biden said there’s “mounting evidence of anti-consumer behavior by oil and gas companies.” The letter noted that prices at the pump have remained high despite a decline in the price of unfinished gasoline. “This unexplained large gap between the price of unfinished gasoline and the average price at the pump is well above the pre-pandemic average,” the letter said.

The letter added that the “two largest oil and gas companies in the United States” — which are Exxon and Chevron based on market capitalization — are on track to almost double their net income compared with 2019 levels, while the two companies have also announced stock buybacks and dividend hikes. Biden’s latest request comes as the administration tries to quell the surge in gas prices and its contribution to inflation across the economy. In August the administration called on OPEC and its oil-producing allies to boost output and also asked the FTC to investigate price-gouging at the pump.

The administration has repeatedly said that it’s examining the tools at its disposal to alleviate some of the burden on consumers, which could include tapping the Strategic Petroleum Reserve. The national average for a gallon of gas stood at $3.41 on Wednesday, according to data from AAA. That’s up from $3.31 one month ago, and $2.12 one year ago. The jump in gas prices comes as West Texas Intermediate crude futures, the U.S. oil benchmark, hit a seven year high above $85 in October.

The blistering rally comes after the contract dipped into negative territory in April 2020 for the first time on record as the pandemic sapped demand for petroleum products. OPEC+ made the unprecedented decision in April 2020 to remove nearly 10 million barrels per day from the market in an effort to support prices, while U.S. producers also scaled back production. These supply cuts, coupled with a demand recovery, have pushed oil prices to levels last seen well before the pandemic took hold.

https://www.cnbc.com/2021/11/17/biden-calls-on-ftc-to-probe-anti-consumer-behavior-by-energy-companies-as-gas-prices-soar.html

In 2020, due to the Saudi-Russia oil production/price war, for a brief period, they were forced to PAY for storage when the price/bbl was in the negatives.



Now they are trying to make up for that.

[twodogsbarking]

16. Oil price manipulation? You betcha.