MEMO: Q3 Energy Corporation Profits – What to Expect and When

As OPEC considers cutting oil production by over 1 million barrels, and temperatures start to drop, households across the country are seeing home energy bills rise more than usual for the season change, as well as the possibility of artificially inflated gas prices. For many this winter, heftier bills will mean sacrificing other necessities to keep their families safe and comfortable. The consumer energy costs are stressful, but they aren’t surprising – for decades, oil and gas corporations have taken advantage of their hold on the United States’ energy system to raise prices artificially, passing on costs to working families while raking in profits and padding shareholders’ pockets. Beginning in late October and spanning until just before the election, fossil fuel-linked energy companies will release their third quarter profits. The profits will be revealing as Americans pay more for basic necessities.

Here are some key dates to keep in mind as prices rise: 

High prices and even higher profits are nothing new. Just this summer, as Americans dug out from pandemic losses, Big Oil raised their prices, blaming the eye-popping price for a gallon of gas on Russia’s invasion of Ukraine. They failed to mention that while global instability and foreign control of oil reserves does make gas a volatile commodity, they were purposely price gouging, intentionally keeping supply low in order to rake in record profits. It worked. 

In the second quarter, almost every major oil producer saw record profits: 

• BP saw a 202% increase in profits, coming in at  $8.45 billion. BP paid out $2.3 billion in stock buybacks and $1.06 billion in dividends.
• Marathon had a 1,200% increase in profits, which totaled $5.69 billion. Marathon spent a total of $6.82 billion on rewarding shareholders.
• ExxonMobil saw a 273% increase in profits for a total $17.5 billion, and paid out $6 billion in stock buybacks and $7.5 billion in dividends.
• Chevron saw a 247% increase in profits, over the same period last year, totaling $11.4 billion, and paid out $2.5 billion in stock buybacks and $2.8 billion in dividends.
• Shell reported a 107% increase in profits, which totaled $11.5 billion. Shell paid out $5.54 billion in stock buybacks and $1.85 billion in dividends.