# Big Oil doubles profits in blockbuster 2022 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-02-08 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Big Oil Profit Surge: Top Companies Shower Shareholders with Meta Description: Big Oil shattered profit records, doubling profits to $219 billion in 2022 amidst volatile energy prices and geopolitical shifts. Companies prioritise security URL: https://financedigest.com/big-oil-doubles-profits-in-blockbuster-2022html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-02-08t125233z1lynxmpej170l2rtroptp4usa-earnings-1736814470113-compressed.jpg) By Ron Bousso LONDON (Reuters) – Big Oil more than doubled its profits in 2022 to $219 billion, smashing previous records in a year of volatile energy prices where Russia’s invasion of Ukraine reshaped global energy markets and, in some cases, the industry’s climate ambitions. The profit surge gave the oil companies scope to increase spending on oil and gas projects, and a chance for some to rethink energy transition strategies to meet new demands for security of supply. The combined $219 billion in profits allowed BP, Chevron, Equinor, Exxon Mobil, Shell and TotalEnergies to shower [shareholders with cash](https://www.financedigest.com/monte-dei-paschis-cash-call-93-covered-so-far-despite-low-shareholder-take-up.html "Monte dei Paschi’s cash call 93% covered so far despite low shareholder take-up"). The top Western oil companies paid out a record $110 [billion in dividends and share](https://www.financedigest.com/abb-to-launch-1-billion-share-buyback-on-april-3.html "ABB to launch billion share buyback on April 3") repurchases to investors in 2022, spurring outraged calls on governments to impose windfall taxes on the industry to help consumers with surging energy costs. Norway’s Equinor on Wednesday reported a doubling of adjusted operating profit in 2022 to $74.9 billion on the back of a surge in European natural gas [prices and as it became Europe’s largest gas supplier after Russia’s Gazprom cut deliveries](https://www.financedigest.com/tesla-posts-record-quarterly-deliveries-after-price-cuts-up-4-from-q4.html "Tesla posts record quarterly deliveries after price cuts, up 4% from Q4") amid the West’s support for Ukraine. [Oil companies last year also pulled out of Russia](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors"), a major energy producer, leading to huge writedowns, including BP’s $24 billion exit from its 19.75% stake in Kremlin-controlled oil giant Rosneft. [LOW DEBT](https://www.financedigest.com/oil-slumps-5-to-five-week-low-amid-us-debt-default-fears.html "Oil slumps 5% to five-week low amid US debt default fears") The sharp rise in oil and gas prices, falling debt levels and the abrupt drop in Russian supplies to Europe also drove boards to [increase spending](https://www.financedigest.com/should-we-be-more-cautious-about-contactless-1-in-4-young-adults-with-contactless-cards-say-theyve-increased-their-spending.html "Should we be more cautious about contactless? 1 in 4 young adults with contactless cards say they’ve increased their spending") on fossil fuel production as governments prioritised security of supply. TotalEnergies [Chief Executive Patrick Pouyanne said after the French company reported record profits](https://www.financedigest.com/bootmaker-dr-martens-warns-on-profit-as-finance-chief-walks.html "Bootmaker Dr Martens warns on profit as finance chief walks") of $36.2 billion on Wednesday that the global backdrop remained very favourable for energy companies, with the relaxing of COVID-19 measures in China pushing up demand for 2023. We wouldn’t be surprised to see [oil back](https://www.financedigest.com/oil-prices-edge-down-recession-fears-back-in-focus.html "Oil prices edge down, recession fears back in focus") to $100 a barrel,” Pouyanne said. Benchmark [oil prices are currently near](https://www.financedigest.com/oil-spills-and-near-misses-more-ghost-tankers-ship-sanctioned-fuel.html "Oil spills and near misses: more ghost tankers ship sanctioned fuel") $85 a barrel. \[O/R\] European companies that have outlined plans to reduce or slow oil and gas [investments and build large](https://www.financedigest.com/large-investment-success-for-basingstoke-cybersecurity-start-up.html "Large investment success for Basingstoke cybersecurity start-up") renewables and low-carbon businesses to cut greenhouse gas emissions adjusted their strategies. [None were more stark than BP Chief Executive Bernard Looney’s move to row back on plans](https://www.financedigest.com/3-factors-to-plan-for-in-2017-a-year-like-none-other.html "3 Factors to Plan for in 2017, A Year Like None Other") to reduce the British company’s oil and gas output and carbon emissions by 2030. We need [lower carbon energy](https://www.financedigest.com/ahold-turns-to-solar-panels-lowers-thermostats-to-save-energy.html "Ahold turns to solar panels, lowers thermostats to save energy"), but we also need secure energy, and we need affordable energy. And that’s what governments and society [around the world](https://www.financedigest.com/old-trafford-attracting-not-just-footballers-from-around-the-world-but-also-investors.html "Old Trafford attracting not just footballers from around the world, but also investors") are asking for,” Looney said on Tuesday. BP’s [shares hit](https://www.financedigest.com/european-shares-hit-nine-month-high-dollar-wobbles-after-powell-remarks.html "European shares hit nine month high, dollar wobbles after Powell remarks") their highest in three and a half years on Wednesday, building on a 7.6% gain a day earlier following the results and shift in strategy. Bernstein analyst Oswald Clint called BP “a lesson in pragmatism, prioritisation and performance”, rating it “outperform”. Pragmatism takes priority this week as a world short [energy together with governments](https://www.financedigest.com/european-governments-spend-half-a-trillion-euros-on-energy-crisis-report.html "European governments spend half a trillion euros on energy crisis – report") begging for more from companies like BP causes a response. BP will lean more into [oil & gas for the remainder of this decade,” Clint said in a note](https://www.financedigest.com/the-peanut-oil-market-to-simulate-on-a-stupendous-note.html "The Peanut Oil Market To Simulate On A Stupendous Note"). (Reporting by Ron Bousso. Editing by Jane Merriman) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---