2024-02-20 11:30:37
According to a report by the NGO Global Witness, major European and American oil companies have made record profits: more than 260 billion euros since the start of Russia’s invasion of Ukraine in February 2022.
The five largest Western oil and gas companies — Shell, BP, Chevron, ExxonMobil and TotalEnergies — have accumulated profits exceeding 261 billion euros since Russia invaded Ukraine, according to a report published by Global Witness on Monday ( February 19).
Wholesale energy prices have increased significantly with the Covid-19 pandemic, and most notably, with the war in Ukraine.
Economic sanctions imposed on Moscow over its invasion of Ukraine and the Kremlin’s decision to stop gas imports to some countries in retaliation have driven up gas prices in Europe, triggering a global energy crisis.
American and European oil and gas companies have seen their profits explode.
Faced with these record profits, US President Joe Biden accused oil companies of “profit from the war”just like United Nations Secretary General António Guterres, who denounced the fact that these groups are making record profits “thanks to this energy crisis, on the backs of the poorest populations and communities, with a massive cost for the climate”.
Patrick Galey, fossil fuel analyst at Global Witness, echoed these comments, saying that “Regardless of what happens on the front lines, fossil fuel giants are the main winners in the war in Ukraine”.
“They have amassed untold wealth through death, destruction and skyrocketing energy prices. »
British companies Shell and BP made £75 billion in profits, a sum that might cover all UK household electricity bills for 17 months, according to Global Witness.
Shell, in addition to reversing its decision to reduce its oil production over the next decade, has decided to lay off 200 members of its division responsible for green jobs.
Record profits have also allowed major oil companies to strengthen their position by buying up smaller players in the oil and gas sector. Thus, Chevron bought Hess Corporation for $53 billion and ExxonMobil did the same with Pioneer for $60 billion.
All these companies combined emit more carbon each year than Brazil, Australia and Spain combined, Global Witness points out in its report.
The top five fossil fuel producers paid out an unprecedented $111 billion to their shareholders in 2023, equivalent to around 158 times what was promised to climate-vulnerable nations at COP28.
The French oil giant TotalEnergies, for its part, paid 15 billion euros to its shareholders, a sum which largely corresponds to the costs paid by the French government to cover the damage caused by storms and droughts in 2022, estimated at 10 billion euros.
« [Les compagnies pétrolières] are now spending their earnings on gifts to investors and to produce more and more oil and gas, which Europe does not need and which the climate cannot support.lamented Mr. Galey.
Tax fossil fuels
Sebastian Mang of the New Economics Foundation, a London-based think tank, said windfall profits amassed by big oil companies were clear evidence that the economic system is flawed and favors fossil fuel giants over citizens ordinary.
“It is high time to significantly increase taxes on the profits of companies like Shell, Total and BP, ban new oil and gas projects globally and accelerate environmentally friendly public investment”Mr. Mang told Euractiv. “If we are to overcome the climate crisis, our economic system must prioritize sustainability over greed. »
At the EU level, the European Commission has proposed revising the 2003 Energy Tax Directive to ensure that low-carbon energy is taxed at a lower rate than fossil fuels.
However, as taxation is an exclusive competence of the Member States, each of them has a right of veto and the proposal is stalled.
Thierry Bros, professor at Sciences Po University in Paris, explained to Euractiv that the windfall profits made by energy companies were mainly returned to shareholders who have the possibility of investing them in less polluting companies if they wish.
“This is how capitalism works: shareholders can vote with their dollars”did he declare.
Mr Bros said a more effective way to change the behavior of oil companies would be to more strictly enforce carbon pricing policies.
“All companies that have made huge profits should pay for all their Type 1 emissions in the EU and UK”said the professor, insisting that no CO2 emission quotas should be granted to oil refineries.
“It’s amoral and destructive for the climate”said Mr. Bros, adding that oil companies “should not receive subsidies in any form for any environmental program, because they are sufficiently rich”.
Frédéric Simon contributed to the writing of this article.
[Édité par Anne-Sophie Gayet]
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