The big oil companies multiply their profits in the second quarter of 2022

First modification: 08/02/2022 – 20:00

If any productive sector has benefited economically from the war in Ukraine, it is the oil sector. In the second quarter of 2022, large companies swam in profits and revenues, a picture that contrasts with the first days of 2020 when these same companies were hit hard by the Covid-19 pandemic.

At the worst moment of the health crisis, due to the confinement in several cities, the world demand for fuel was scarce and the price of oil became negative. But now it is back -with a bang- on the path of growth.

The profits of the British Shell, in the second quarter of the year, were close to quadrupling with an increase of 280% compared to the same period of 2021. Its total income grew 426% in the three months ending in June.

For the US companies Chevron and ExxonMobil, the scenario was very similar, with profits rising 270% and 288%, respectively. Second quarter revenues increased by 83% and 280% in the same order.

Why do fuels have high prices in oil-producing countries?

As well as profits, fuel prices continue to rise and in several American countries people pay high sums of money to fuel their vehicles, an effect that is also reflected in the prices of basic necessities that must be transported from its point of production to large distributors.

In countries of the region that are important oil producers, historically high gasoline prices are reported, which have led several Latin American countries to express their anger in massive protests in recent months, as occurred in Ecuador, Peru or the most recent outbreak of demonstrations in Panama.

According to information from the specialized agency Bloomberg, in Brazil, the largest economy in Latin America and the largest oil producer in the region, its citizens must pay at least one third of the monthly minimum wage to fill a 55-liter tank. liters; in Mexico, whoever wants to supply their transport with the same amount must pay at least a quarter of the basic income and in Argentina, Chile and Colombia up to 20%.

10:29

In an interview with France 24, Julio César Vera, president of the Xua Energy foundation, said that “the main function of any oil company is to maximize profits from the exploitation of these resources and obviously this is achieved by selling the oil, or the fuels that they produce and refine, at their opportunity cost, that is, companies maximize their profits based on that opportunity they have to place on the market”.

with AP