BREAKING: 2022 New York State Solar Incentives Now Best In USA

Oil Companies Seeing Record Profits

Currently, major oil companies are earning more money than they know what to do with. Records show that within the first three months of 2022, 28 of the largest oil-producing companies profited a total of almost one hundred billion dollars (4).

 Due to Russia’s invasion of Ukraine, oil commodity prices skyrocketed. Countries that depend on Russia for energy rushed for alternative fuel sources due to uncertainty. The current first quarter benchmark for global oil prices is on average $102.23/barrel, which is 67% higher than last year (1). Since inflation is quickly on the rise in many countries, companies are returning billions of dollars to shareholders through buybacks and dividends (4).

Climate campaigners have a strong viewpoint on the way oil companies are conducting their businesses. They have referred to their profits as “obscene” and insisted that the supply of fossil fuels would not be as “lavishly rewarding” if governments addressed the growing climate crisis effectively. Lori Lodes, the executive director of Climate Power (an advocacy group), claims that businesses are boasting about how much the war on Ukraine and inflation has positively affected them.

 

 

Oil companies are likely going to be hesitant to give up these record profits. Prices hopefully will be able to go back to normal once the world returns to a less crazy state. However, companies may choose to keep their prices high for as long as they can. After all, it will likely be extremely difficult for big-time companies to give up record profits, since they are currently making more than they ever have before. 

 Oil companies argue that they have nothing to do with the set global price of oil. However, with the shocking spike in profits, scientists are forewarning us that if we don’t slow down the use of fossil fuels, we will cause heatwaves, drought, a sea level rise, and overall intensify the already existing climate emergency. 

 The wealth stemming from the oil and gas industry proves that there is more money being made from destroying the climate than the attempt to preserve it. According to the International Energy Agency, if there are any new oil/gas fields, or coal mines, the world will NOT reach our goal of net-zero emissions by 2050 (4).

 How can we slow the use of fossil fuels? A way we can do this is by choosing a form of renewable energy, such as solar energy. There are limited oil and gas companies choosing to report on their investments in clean energy (solar/wind power) or their attempt to remove Carbon Dioxide from the atmosphere (4). Not only should we be aware of our own carbon footprint, but of the companies around us as well. 

The Bottom Line

So, what does this mean for the common person? While record profits for oil companies does not help the ongoing climate change crisis (and likely makes it worse than it already is), we are confident that these prices will not be going down anytime soon. While oil companies may not have any control over the current global rate, we expect them to keep their company prices high, even when the cost of the oil itself decreases to a normal rate again (whenever that may be). This is because these companies are making more money than they know what to do with, and returning to “normal” profits after this high of an increase is not going to be easy. The easiest solution for homeowners and business owners to regain their energy independence is to go solar. Get in touch with us today!