The Russian-Ukrainian war will push oil prices to a high level, and oil industry profits will soar in 2022.

(AFP)

[Financial Channel/Comprehensive Report] As the Russian-Ukraine war and the Wuhan pneumonia (COVID-19) subside, international oil prices have been pushed to a high level, and the profits of oil companies have been even higher. In this regard, the White House accused US oil companies of increasing oil supply.

Chevron Corporation posted a record profit of US$36.5 billion (about NT$1 trillion) in 2022, more than double its earnings in the same period last year.

Profits in the oil industry have soared, and oil majors have increased their share buybacks to US$75 billion (approximately NT$2.2 trillion). Other oil companies are expected to follow suit.

Analysts expect a bumper earnings season for global energy suppliers.

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The U.S. government tried several times last year to persuade oil companies to increase production when prices rose, but they were unsuccessful, so Biden finally decided to use the U.S. Strategic Petroleum Reserve (SPR).

White House spokesman Abdullah Hasan said the company clearly had everything it needed to increase production, but it was their own decision to keep putting windfall profits in the pockets of executives and shareholders rather than using them to boost supply.

The U.S. Congress has enacted tax breaks for major oil companies due to falling fuel demand during the epidemic blockade, but the United States has not followed the example of European countries in imposing windfall profits taxes on the oil industry.

The energy sector was one of the best-performing sectors in the S&P 500 last year after years of lagging the broader market.

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