Nine of the world's biggest listed oil producers are projected to share more than $95 billion (£71bn) in profits during the third quarter, marking a second consecutive period of massive earnings. According to analysis by investment broker AJ Bell, this windfall comes seven months after the US-Israel war on Iran caused global oil prices to surge above $126 per barrel. The same group of companies had already reported $96 billion in profits for the preceding quarter.
Saudi Arabia's state-owned Aramco is expected to lead the profitability rankings for the period. Analysts anticipate the company, valued at $1.7 trillion, will report a 7% increase in quarterly net income to reach $30 billion, despite being targeted by Iran-backed Houthi forces. Meanwhile, London-listed BP published its results for the July to September period last week, revealing quarterly profits of $8.46 billion, its highest since 2008.
The industry's financial gains have been significantly bolstered by refining divisions that capitalized on higher prices and supply shortfalls following disruptions to shipments through the Strait of Hormuz. However, these record profits have intensified criticism from environmental campaigners who argue that millions of households are left paying higher energy bills while the planet faces climate chaos.
Mike Childs of Friends of the Earth stated that big oil companies are raking in enormous profits while people struggle with affordability and the environment suffers. He criticized the industry for fighting to extract more oil and gas instead of investing in cheap, homegrown renewables that could lower bills and create jobs. Childs called on ministers to accelerate the transition to renewables and force polluters contributing billions to help build a cleaner energy system.
Robin Wells, director of Fossil Free London, questioned why the UK government continues to subsidize an industry generating billions in quarterly profits. He noted that the oil lobby is pushing for more drilling, including the Rosebank oilfield in the North Sea, while seeking tax breaks. Experts estimate that developing Rosebank could emit an additional one million tonnes of carbon dioxide annually by 2042, against a UK target of 90 million tonnes.
UK Energy Secretary Miatta Fahnbulleh is currently weighing whether to approve drilling at Rosebank after recently licensing the less controversial Jackdaw gasfield. A decision to proceed with Rosebank would likely face opposition from climate campaigners and some Labour backbenchers who view it as a deviation from net zero priorities.
In response to the situation, Shell and Saudi Aramco declined to comment. A BP spokesperson referenced comments by CEO Meg O'Neill regarding the company's role in ensuring diesel and jet fuel supply during the global energy crisis. Eni attributed its profits to an effective management model that develops hydrocarbon resources to meet structural global demand for energy security, while also noting its expansion into renewable energy businesses. Equinor, TotalEnergies, Chevron, ExxonMobil, and ConocoPhillips were contacted for comment.
Sources: The Guardian Business.