Oil giants poised for record profits amidst Middle East conflict

These substantial profits have intensified calls for oil corporations, including Saudi Aramco and BP, to contribute to environmental remediation and support the transition to renewable energy sources. Investment broker AJ Bell’s analysis indicates that nine leading listed oil producers are on track to achieve this record profit level for the three months ending September. The surge in oil prices, exceeding $126 a barrel, initially occurred seven months ago due to the US-Israel conflict with Iran.

Saudi Aramco is expected to lead the profit charts, with analysts predicting a 7% increase in quarterly net income, reaching $30 billion, despite facing attacks from Iran-backed Houthi forces. Carbon Majors data identifies Aramco as the largest historical contributor to carbon emissions, followed by Chevron and ExxonMobil, with Shell and BP also among the top polluters.

BP recently announced quarterly profits of $8.46 billion for the July to September period, marking its highest earnings since 2008. Refining divisions have significantly benefited from the price increases and supply shortages resulting from disruptions in the Strait of Hormuz following the Iran conflict.

“The oil companies are raking in enormous profits while millions of people struggle to afford their energy bills and the planet burns,” stated Mike Childs of Friends of the Earth. “Instead of investing in cheap, homegrown renewables… the fossil fuel industry is fighting for permission to extract even more oil and gas.”

Robin Wells of Fossil Free London questioned the UK government’s continued subsidies for a highly profitable industry. He highlighted the oil lobby’s efforts to secure further drilling concessions, including the Rosebank oilfield, which he argues will not lower energy bills.

UK energy secretary Miatta Fahnbulleh is currently considering approval for drilling in the Rosebank oilfield in the North Sea, following the recent approval of a license for the Jackdaw gasfield. Experts estimate Rosebank could release an additional 1 million tonnes of carbon dioxide annually by 2042, a figure that clashes with the UK’s net-zero targets.

Shell and Saudi Aramco declined to comment. BP referred to remarks from CEO Meg O’Neill emphasizing the company’s role in ensuring energy supply. Eni stated that its profits reflect “an effective operational and financial management model” and highlighted its expansion into renewable energy. Equinor, TotalEnergies, Chevron, ExxonMobil, and ConocoPhillips were contacted for comment.