Monster profits for Shell in 2022, also box office for other oil groups
Substantial gains for other oil groups
A profit of 38.5 billion euros on total sales of $386 billion, that’s a lot. Of course, Shell has benefited from high oil and gas prices. Other oil groups are benefiting just as much from the rise in gas and oil prices. If we add up the profits of other oil companies in 2022, we arrive at a figure of about $260 billion in profits, about $120 billion more than in 2021. BP did turn a loss, due to write-downs on assets in Russia.
Net profit of oil groups in 2022
- ExxonMobil: 51.5 billion euros
- Shell: 38.5 billion euros
- Chevron: 32.6 billion euros
- Saudi Aramco: 119.7 billion euros in first nine months 2022
- ConocoPhillips: 14.2 billion euros in first nine months 2022
- TotalEnergies: €15.9 billion in first nine months 2022
Politics struggles with hefty profits
Whether all those profits are so fair? That, of course, is questionable. The consumer is always the child of the bill. Politicians also take issue with the high profits of oil companies, especially when people can barely make ends meet with skyrocketing energy bills. Extra income tax for oil groups should take a cut from net profits, Shell, for example, will pay an extra $2.3 billion in taxes over 2022. But that is only a fraction of total profits.
Investing in renewable energy
Oil and gas still drive Shell’s profits. The company invests a small portion of its revenue in renewable energy such as wind and green energy. In 2022, it was $3.5 billion. A lot of money, of course, but not enough, according to politicians. Politicians believe Shell should invest more in these renewable energy sources.
The reins of power
Oil companies are ultimately pulling the strings to accelerate the transition to renewable energy. But the principle is clear by now: economic gain always prevails. Of course, the world will need oil and gas for a long time to come, but the power does lie with oil corporations to change things quickly. With $50 billion, Europe is already greening on a large scale through hydroelectric, solar and hydrogen power plants. That money is there, because in 2022 alone, all oil companies combined posted 259.1 billion euros in profits. The only question is whether oil companies will take on the role of Robin Hood, without the “steal” part, of course.