Because of the war in Ukraine, oil and gas prices have skyrocketed. The British group BP benefits from this and records the second-highest quarterly profit in its history. In politics, the development is viewed with suspicion.
The energy company BP earned significantly more money because of the rise in oil and gas prices as a result of the Ukraine war. The British group posted the second-highest quarterly profit ever in the past quarter. Adjusted net income rose to $8.15 billion, the company said. That was significantly more than experts had expected. A year ago, the group reported adjusted earnings of $3.3 billion.
The Saudi Arabian state-owned company Aramco is also one of the winners of the energy crisis: it earned a total of 41.6 billion dollars, around 40 percent more than a year earlier. This is the second-largest net profit since the IPO, the company said. Only between April and June was it larger at $48 billion.
As a result of the Russian invasion of Ukraine, oil prices initially climbed to their highest level in 14 years. They then declined as inflation and tightening central bank policies slowed the global economy. A barrel of North Sea Brent cost $93.95 at midday, a fifth more than at the beginning of the year. Other companies also benefit from the prices. US oil industry leader Exxonmobil had presented the largest quarterly profit in its company history. Competitors such as Chevron, Total, Repsol and Shell also clearly exceeded the billions in profits in the same quarter of the previous year.
While investors benefit from the profits, dissatisfaction is growing among politicians, who are struggling with the effects of inflation and rising interest rates. As a result, the UK already has an excess profit tax affecting Shell and BP. Now Biden also brought such a tax into play.
"The oil industry has a choice. Either it invests in America by lowering consumer prices at the pump and increasing production and refining capacity. Or it pays a higher tax on its excessive profits and faces further restrictions," said Biden. Those who make such high profits have a responsibility to act in the interests of consumers, society and the country. His team will work with Congress to explore options.
Biden had previously voiced his displeasure with share buybacks and dividends, and urged oil companies to put more money into production. Biden's Democrats want to defend their majorities in the House of Representatives and Senate in next week's congressional elections. However, even with a narrow election success, an excess profit tax is unlikely to stand a chance in Congress.
