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Truthout - March 29, 2022

“It is unconscionable that U.S. upstream companies like Chevron, Occidental, and ExxonMobil, who receive federal tax subsidies totaling millions of dollars every year, are now set to make billions of dollars more from these high wartime gas prices,” Tim Donaghy, the research manager at Greenpeace USA, said in a statement Tuesday.

A new analysis released Tuesday estimates that U.S. oil and gas corporations are poised to rake in windfall profits of up to $126 billion this year as they exploit Russia’s deadly assault on Ukraine to raise prices at the pump.

Conducted by Oil Change International, Greenpeace USA, and Global Witness, the analysis uses a database that tracks the fossil fuel industry’s production economics to assess how much money the industry is set to make as a result of high global oil prices.

“Under conservative estimates, we find the U.S. upstream oil and gas industry will collect a windfall of $37 to $126 billion in 2022 alone,” the groups’ report states.

The higher-end profit estimate is dependent on oil prices spiking to $120 per barrel this summer and remaining elevated as the West moves to restrict Russian oil imports — a major opportunity for U.S. fossil fuel companies, particularly as the Biden administration looks to ramp up gas exports to Europe.

If oil prices average $88 per barrel, the new analysis finds, the U.S. oil and gas industry would reap $37 billion in additional profits in 2022.

The report notes that the top beneficiaries of the windfall would be industry giants ConocoPhillips, Chevron, Occidental Petroleum, and ExxonMobil. ...
Read full report at Truthout