Business major

Oil majors face backlash as big-profit era returns

“SLAM IN THE FACE”

BP said the result would allow it to accelerate the “greening” of the business.

But the companies’ performance has sparked calls for a windfall tax on UK energy company profits.

“These profits are a slap in the face for the millions of people who dread their next energy bill,” Kate Blagojevic, climate manager at Greenpeace UK, said in a statement.

“BP and Shell are raking in billions from the gas price crisis while benefiting from one of the most favorable tax regimes in the world for offshore drillers,” she said.

“And these are the same companies responsible for bringing our world closer to catastrophic climate change.”

Seeking to head off a political storm, Prime Minister Boris Johnson’s government last week announced a financial support package after the national energy regulator raised prices.

The opposition Labor Party said it was not enough.

Finance Minister Rishi Sunak’s ‘energy plans’ last week left families more worried than ever,” Shadow Labor Minister Rachel Reeves tweeted after the oil company results were released.

“It’s time for Labour’s plan for a windfall tax on oil and gas producers to cut bills.”

Sunak rejected the tax idea.

MORE PROFITS

Ahead of the presidential election in France in April, environmental candidate Yannick Jadot spoke out against profits being made “on the backs of the French” as “gas and gasoline bills rise for the benefit of shareholders “.

TotalEnergies CEO Patrick Pouyanne said that if the company paid more to governments, “it would be at the expense of investments, workers or shareholders”.

But apparently to fend off criticism, TotalEnergies this week announced a discount at the pump in rural areas of France as well as a €100 (US$113) voucher for people struggling to pay their gas bills.

The oil majors, however, could have another banner year for earnings as analysts expect prices to climb to US$100 a barrel.

“The health crisis appears to be coming to an end, economic recoveries in China, the United States and Europe show no signs of waning, supply remains constrained due to a lack of oil investment over the past two years and environmental pressure,” he added. Ajmi said.

“So yes, the oil majors’ profit rebound could continue into 2022.”