Oil Giants Reap $93 Billion Profit Amid Iran Conflict and Heatwaves

Eight of the world's largest oil corporations have reported staggering profits of nearly $93 billion for the April-June quarter, a period marked by the ongoing Iran conflict and severe heatwaves globally. This figure represents a near doubling of profits compared to the same period last year, when earnings stood at approximately $50 billion.

The analysis, based on quarterly figures compiled by The Guardian, reveals that these companies collectively generated over $700,000 in profit every minute during the spring quarter. Their combined market valuations surged by roughly $600 billion, surpassing $3 trillion. This quarter marks the first full one since the United States and Israel initiated the Iran conflict, which propelled global oil prices to highs exceeding $126 per barrel.

Saudi Aramco, the state-owned Saudi Arabian oil giant, emerged as the most significant beneficiary, with its profits rising 34% to over $33 billion in the three-month period. This occurred even as Saudi Aramco's infrastructure sustained damage from drone and missile attacks by Iranian and Houthi forces. However, the surge in oil and fuel prices, driven by the conflict, proved more impactful on overall profits.

The report also draws attention to the environmental impact, citing the database "Carbon Majors" which identifies Saudi Aramco as the largest historical contributor to CO2 emissions, followed by Chevron and ExxonMobil. Shell and BP are also among the top ten polluters. A study published in "Nature" last autumn indicated that oil companies are significantly responsible for heatwaves, with man-made climate change making such events considerably more likely and intense. The 14 largest emitters of CO2 and methane are responsible for 30% of climate-damaging emissions, including Saudi Aramco, Gazprom, ExxonMobil, Chevron, the National Iranian Oil Company, BP, and Shell.

In defense of the profits, BP's new CEO, Meg O’Neill, stated the company is focused on "the things we can do to help manage the situation," such as producing necessary oil products. BP had previously announced a strategic shift, drastically cutting investments in renewable energy to refocus on fossil fuels. The company is currently looking to sell its US biogas business, Archaea, which it acquired just in 2022.

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on the things we can do to help manage the situation