Amid world crises, 'grotesque greed' wins out

Some countries are already in the grips of painful economic contractions; for others, including the United States, the prospect of recession seems around the corner. Europe, ensnared by its reliance on Russian gas, is bracing for what’s being billed as a “winter of despair.” Aid agencies and U.N. officials warn of hunger stalking the planet, as price rises push staples out of reach for tens of millions of people. The global macroeconomic maelstrom has already collapsed one debt-ridden, developing economy (Sri Lanka), while other nations (Zambia, Laos and Pakistan, to name a few) find themselves on the brink.

But for major multinational fossil fuel companies, it’s the best of times.

Recent second-quarter earnings reports proffered eye-popping figures: BP posted second-quarter profits worth $8.5 billion, its biggest windfall in 14 years. ExxonMobil went one further — its $17.9 billion in net income was its largest-ever quarterly profit. U.S. company Chevron, London-based Shell and France’s TotalEnergies also recorded blockbuster results. Put together, these five major companies made $55 billion this past quarter, as hundreds of millions of people around the world bore the brunt of surging prices at the pump.

United Nations Secretary General António Guterres believes this state of affairs is abhorrent. In remarks made last week, he hammered energy companies for price gouging at a time of global crisis and urged governments to aggressively tax these corporations’ profits.

https://www.washingtonpost.com/world/2022/08/08/oil-companies-profits-inflation/