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White House Calls Exxon Record Profit ‘Outrageous’
As a direct result of Russia’s invasion of Ukraine, the oil industry behemoth ExxonMobil raked in a record profit of $55.7 billion (£45.2 billion) in 2016, thanks to the sharp increase in oil prices. The total was more than double what it was in 2021 and is likely to revive pressure on the industry after several countries, including the UK, slapped special taxes on the profits of certain industries in the previous year.
Such efforts have been criticized by Exxon as being counter-productive. It filed a lawsuit against the European Union last month regarding the new windfall tax. Exxon has also spoken out against similar plans in the United States, where President Joe Biden has sought to place blame for last year’s high prices of motor fuel on businesses that did not spend their earnings to raise supply.
Exxon has spoken out against these suggestions. After the American people were forced to pay such high rates at the pump in the midst of [Russian President Vladimir] Putin’s invasion, a statement released by the White House on Tuesday termed it “outrageous that Exxon has recorded a new record for Western oil corporation profits.”
“The most recent earnings reports make it clear that oil companies have everything they need to increase production, including record profits and thousands of unused but approved permits,” said Abdullah Hasan, a spokesman for the White House.
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“However, instead of choosing to increase production, they have chosen to plow those profits into padding the pockets of executives and shareholders.” Exxon boss Darren Woods said in an interview with CNBC that the White House needed to “get its facts straight,” noting that the company had continued to spend money on oil and gas projects despite pressure from investors and others to shift investments to renewable energy.
Woods was commenting on the fact that Exxon had continued to spend money on oil and gas projects. On Tuesday, he addressed the investors and argued that the company’s strategy had been proven successful by the recent profits. “Of course, our earnings definitely benefited from a favorable market,” Mr. Woods said on a conference call with investors.
“However, in order to take full advantage of the undersupplied market, our work began years before.” We went against the grain of common thinking and leaned in when everyone else was leaning out. The decline in demand for oil in 2020, which caused Exxon to post its first loss in decades, led to a dramatic decline in the value of the company’s shares.
However, the price of the shares has skyrocketed since 2021, particularly after the price of oil increased significantly after the conflict in Ukraine interrupted the energy supply in the previous year.
The company claimed that it had been making significant efforts to cut expenses and that its earnings would have been considerably greater if it weren’t for the windfall taxes that are levied in Europe.
The corporation reported that it suffered a loss of $1.3 billion in the last months of 2022, the majority of which was due to additional taxes levied in Europe. It also declared a charge for the year totaling $3.4 billion due to the expropriation of its investments in Russia. This charge came about during the course of the year.
According to Exxon, the company raised its investments by around 38% in the previous year. According to the corporation, production increased by more than 30 percent in several critical locations, such as Guyana and the Permian Basin.
This was sufficient to balance the output lost due to divestments and the shift in Russia. The total amount of oil that was produced rose by around 3% in 2022, going from 2,289 thousand barrels per day in 2021 to 2,354 thousand barrels per day in 2022.
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