Big Oil Earns Billions Despite High Oil Prices
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Oil companies are making huge profits as crude oil prices rise.
ExxonMobil’s ( XOM), 2021 profit was $23 billion, the company’s largest in seven years. It’s also expected to earn nearly $33 billion this fiscal year, as crude oil prices rise. BP ( BP) earned $12.8 billion in 2021, and is expected to earn $15.6 million in 2022.
This huge earnings growth has prompted talk from both sides of the Atlantic about the necessity of a windfall tax on Big Oil. These taxes could be used to provide financial assistance for consumers who are struggling with high energy prices.
In the past, both the United States of America and the United Kingdom imposed windfall profits taxes with wide political support. However, this time support has been largely limited to liberal parties in both countries.
Boris Johnson, the Prime Minister of Britain, has rejected the idea. Rishi Sunak (his finance minister) is expected to outline the plans of the British government to assist citizens with dealing rising energy prices Wednesday.
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