Saudi Press

Saudi Arabia and the world
Thursday, Mar 05, 2026

Oil giants' massive profits revive calls for windfall taxes

Oil giants' massive profits revive calls for windfall taxes

Global energy giants including Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) posted another round of huge quarterly profits, benefiting from surging natural gas and fuel prices that have boosted inflation around the world and led to fresh calls to further tax the sector.

Four of the five largest global oil companies have now reported results, combining for nearly $50 billion in net income, lifted by tight global markets and disruption following Moscow's invasion of Ukraine.

The sheer size of the profits has revived calls from politicians and consumer groups to impose more taxes on the companies to raise funds to offset the hit to households, businesses and the wider economy from higher energy costs. They have also criticized big oil companies for not doing enough to raise production to offset rising fuel and heating costs.

Chevron Chief Financial Officer Pierre Breber warned in an interview with Reuters that "taxing production will just reduce it."

The company reported its second-highest profit of $11.2 billion. However, the company's global production is down so far this year from a year ago, and other U.S. oil companies signaled that output in the top-producing U.S. shale region is waning already.

"If you raise the costs on energy producers, it will decrease investment so that goes against the intent of increasing suppliers and making energy more affordable."

U.S. President Joe Biden, who earlier this year said Exxon was making "more money than God", told oil companies this month that they were not doing enough to bring down energy costs.

Hours after Shell (SHEL.L) reported a quarterly profit of $9.45 billion and raised its dividend by 15% on Thursday, Biden said the company was misusing its profits.

On Friday, he noted on Twitter in response to a comment from Exxon's CEO that "giving profits to shareholders is not the same as bringing prices down for American families."

In the UK, the president of the COP26 climate summit Alok Sharma said on Friday that Prime Minister Rishi Sunak's government should explore extending a windfall tax on oil and gas firms.

"These are excessive profits, and they have to be treated in the appropriate way when it comes to taxation," Sharma said.

Shell CEO Ben Van Beurden has said the energy industry "should be prepared and accept" that it will face higher taxes to help struggling parts of society. Shell earned more than $9 billion in the third quarter, putting it on track to surpass its record annual profit of $31 billion set in 2008.



WINDFALL


Exxon Mobil, the largest U.S. major, reported nearly $20 billion in net income in the quarter ending in September, exceeding expectations and surpassing its previous record set just three months earlier.

Exxon led the five oil majors in overall revenue, nearly doubling its peers Shell and TotalEnergies (TTEF.PA) in the quarter. Exxon's shares lagged those companies' stocks for several years, but have rebounded in 2022 even as it has not made the same commitment as its European competitors to ramp up spending in renewables. BP Plc (BP.L), the fifth major, reports results next week.

"Where others pulled back in the face of uncertainty and a historic slowdown, retreating and retrenching, this company moved forward, continuing to invest," Exxon CEO Darren Woods said.

Shares of the five majors have all posted a total return of at least 29% this year. Exxon leads the way with an 86% increase, while the broad-market S&P 500's (.SPX) total return is minus-19% on the year, according to Refinitiv Eikon data.

European governments have scrambled to fill gas storage after Russia cut off most of its natural gas exports to the continent, its primary customer.

On Friday, Norway's Equinor also broke new ground helped by the all-time high in European gas prices, and Italy's Eni (ENI.MI) nearly tripled its profit from a year ago, beating the consensus with earnings of 3.73 billion euros ($3.72 billion). France's TotalEnergies reported a record profit of $10 billion on Thursday.

"The Russian war in Ukraine has changed the energy markets, reduced energy availability and increased prices," Equinor Chief Executive Anders Opedal said in a statement.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Iran Says Its Strikes Target Only U.S. Military Assets and Denies Attacking Saudi Arabia
Drone Strike Hits U.S. Embassy in Riyadh as Middle East Conflict Escalates
Tom Brady’s Saudi Flag Football Event May Shift to U.S. as Middle East Conflict Disrupts Plans
Iran War Strikes Saudi Arabia at a Critical Moment for Its Economic Transformation
Saudi Cabinet Declares Kingdom Will Take All Necessary Measures to Defend National Security
United States Urges Citizens to Leave Fourteen Middle Eastern Countries as Iran War Escalates
Saudi Aramco’s Ras Tanura Refinery Targeted Again in Second Drone Attack Within Two Days
Saudi Pro League Orders Clubs to Continue Fixtures Despite Rising Middle East Conflict
Trump Pursues Major Civil Nuclear Agreement With Saudi Arabia Amid Regional Turmoil
Mass Drone Attacks Strike Gulf States as Iran Conflict Spreads Across Region
No Verified Confirmation of Ronaldo Departure Linked to Iran Conflict or AFC Suspension
No Verified Evidence of Israeli Intelligence Arrests in Qatar or Saudi Arabia
Drone Attack Forces Temporary Shutdown of Saudi Arabia’s Largest Oil Refinery
Israel Intensifies Air Campaign in Tehran as Iran Expands Regional Retaliation
Iranian Strikes Escalate Middle East Conflict, Drawing Saudi Arabia Closer to Wider War
No Verified Confirmation of Drone Strike on King Fahd Causeway Amid Regional Tensions
No Verified Evidence Saudi Crown Prince Is Seeking to Weaken Israel Amid Regional Tensions
Reports Emerge of Drone Strike Near US Embassy in Saudi Arabia as Americans Told to Shelter
Saudi Arabia Weighs Strategic Options as Tensions With Iran Intensify
Iran Expands Strikes on Saudi and Qatari Infrastructure, Opening a New Front in Gulf Conflict
Western Navies Sound Alarm as Russian Shadow Tankers Transit NATO Waters in Defiance of Sanctions
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Imola Emerges as Standby Venue if Bahrain or Saudi Arabia Grands Prix Are Cancelled
Uncertainty Clouds $24 Billion Gulf Investment Linked to Paramount–WBD Deal
Middle East Strikes Disrupt Qatar LNG, Saudi Refining and Israeli Energy Fields
Gulf States Signal Possible Collective Action Over Iran’s Escalating Strikes
Saudi Arabia Summons Iranian Ambassador After Cross-Border Attacks
Saudi Arabia Intercepts Drones Targeting Ras Tanura Oil Refinery as Conflict Escalates
Saudi Arabia Clarifies It Supported Diplomacy With Iran, Not Military Escalation
Putin and Saudi Crown Prince Confer on Escalating Iran Crisis
Drone Strike Forces Shutdown of Saudi Arabia’s Largest Oil Refinery
Saudi Arabia Signals Harder Line on Iran as Regional Conflict Deepens
Strikes in Qatar and Saudi Arabia Pull Energy Infrastructure Deeper Into Expanding Middle East Conflict
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
Emerging Saudi–Turkish Alignment Draws Attention as Potential Strategic Challenge for Israel
Saudi Arabia Unveils $100 Billion Technology Investment Fund to Accelerate Post-Oil Diversification
US Lawmakers Question White House Consideration of Saudi Nuclear Enrichment Framework
Saudi Arabia Reaffirms Firm Commitment to Two-State Solution in Renewed Diplomatic Push
Saudi Arabia Launches Central Kitchen in Gaza to Deliver 24,000 Meals a Day
Saudi Arabia Announces $346 Million Support Package for Yemen in Renewed Humanitarian Push
Saudi Investors Increase US Equity Exposure Amid Domestic Market Weakness
Saudi Arabia Unveils Major Desert Gas Development in Strategic Shift Toward Diversified Energy Growth
Satellite Images Indicate Increased Aircraft Presence at Saudi Airbase Hosting US Forces
Telephone Diplomacy Sparks Tensions Between Two Key US Allies After Trump Intervention
Asian LPG Prices Surge After Damage Forces Saudi Aramco Export Disruptions
Saudi Arabia Unveils $100 Billion AI Infrastructure Fund to Challenge US and China
Saudi Stocks Close Lower as Tadawul All Share Index Falls 1.28 Percent
×