The war in Ukraine has boosted the fuel trade around the world. The sector aims to allocate record profits to energy transformation

Posted On: October 6, 2022

Saudi Aramco, Exon Mobile, Chevron, Shell are just a few select fuel companies that apart from Orlen and Lotos posted record profits in the second quarter of 2022. The macroeconomic situation is conducive to above-average earnings. oil companies around the world.

Never in history has the fuel sector gained so well. Oil companies around the world are recording record results. This is facilitated by the growing demand for fuels, which is not accompanied by increased investment in the expansion of extraction and supply and the embargoes imposed by many Western countries on oil imports from Russia after the outbreak of war in Ukraine. In fact, in addition to the United States, the world has had limited oil and gas supplies in recent years. The fuel sector, especially in recent years, prefers to invest in the future, that is to say renewable energies and zero-emission technologies.

Biggest Quarterly Earnings Ever

In the second quarter of 2022, the world’s largest oil company posted record profits. During the quarter, the Saudi company earned a record $48.4 billion. This is the largest quarterly profit not only in Saudi Aramco’s history, but in the entire history of capital markets. So far, no company has earned as much in a quarter as Saudi Aramco last quarter.

Today @aramco Record quarterly net profit for a listed company: $48.4 billion vs. $25.5 billion (Q2 2021)

Being a greaser:

Exxon: $17.9 billion vs. $4.7 billion
Chevron: $11.6 billion vs. $3.1 billion
Hull: $11.5 billion vs. $5.5 billion
TotalEnergies: 9.8 billion dollars against 3.46 billion
Equinor: $5 billion vs. $1.6 billion
Repsol EU2.12b against EU488m
Orlen PLN3.6b against PLN2.4b

-Konrad Krasuski (@kkrasuski) August 14, 2022

On the other hand, the biggest oil companies in the world are also making spectacular profits. The above-average results are the result of the sanctions imposed by many Western countries on oil imports from Russia, but above all of the growing demand, which is not accompanied by significant investments in new production capacities. . There’s no need to look for a second bottom in there. Oil companies around the world, aware of the global trend related to decarbonization and ESG, despite record profits, are investing very cautiously in new production capacities. They see their future in a zero-emissions world and that is where they mainly plan to direct their investments.

High energy prices are accelerating the energy transition

Oil companies are aware that high energy and fuel prices will only accelerate the global energy transition to zero-emission sources, and are therefore reluctant to invest in new conventional deposits and processing capacities. They prefer to use the above-average profits for their own energy transformation. Saudi Aramco CEO Amin H. Nasser in a letter to shareholders recalls that the company is currently implementing the largest investment program in the company’s history in renewable energy sources and in technological solutions enabling the energy acquisition, among others. from hydrogen. Saudi Aramco sees its future in providing energy not only from oil, but also from renewable energy sources

WIG-Paliwa Index Quotes in Years 2020 – 2022

Interestingly, virtually all major oil companies, including the domestic Orlen, have announced their climate strategies and zero-emissions transformation plans. The sector as a whole is at an extremely interesting time. On the one hand, it enjoys above-average profits due to constantly limited investment in new fields and production capacities after the shale revolution, and at the same time is aware that these profits will one day disappear, and will certainly decrease. considerably over time. Therefore, it is currently directing its huge investments towards renewable and alternative energy sources, because the future of the world lies in renewable and zero-emission energy sources, not in fossil fuels.