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Oil Majors Keep Being Lucrative Despite Environmental Concerns

Oil majors have made enormous profits amidst intense criticism by environment activists and consumers’ huge bills.

Companies of ExxonMobil, TotalEnergies, and UK giants Shell and BP reported of their huge revenue totaled $66.7 billion in 2021. It shows a recovery from 2020, when the pandemic hit the global economy and brought about lockdowns. The global issue brought down crude prices. Oil and gas prices rebounded in 2021, jumping to $70 per barrel.

In the month of January, the major international and U.S. contracts jumped to seven-year highs, currently at $90 approx.

 Energy & Resources Assurance Leader for Europe, Moez Ajmi, said oil firms profited from exceptional alignment of planets. He said alongside higher energy prices, energy companies cleaned up their assets and kept the most lucrative ones. They reinforced their cost-cutting measures as well.

 A slow rise in yield by OPEC and allies was also helpful. US firm ExxonMobil, with a loss of $22.4 billion in 2020, saw a profit of $23 billion in 2021. France’s TotalEnergies witnessed a remarkable growth- from $7.2 billion loss to a $16 billion profit. Shell, too, gained $20.1 billion in 2021, from $21.7 billion loss a year before. BP saw a slight growth, from $20.3 billion loss to $7.6 billion profit.

However, the energy bills have increased. The energy firms in the UK demanded a windfall tax on their profits.

Kate Blagojevic, Greenpeace UK's head of climate, said these profits are an insult to so many consumers awaiting their upcoming bills. She also criticized these companies for intensifying tragic climate change.

Although oil majors have been subjected to criticism, they are expected to grow their profit in 2022: analysts predict oil process to go up to $100 per barrel.

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By Saha on February 13, 2022

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