Big Oil generated $48 billion in second-quarter profits and nearly $90 billion in cash, marking an all-time high:
The windfall is fueling fresh political and environmental backlash, with Trump accusing Exxon Mobil and Chevron of making “too much money” amid growing calls for windfall taxes:
The supermajors have yet to unleash a spending spree, raising questions over whether the cash will go toward investment, debt reduction, or shareholder returns:
Where is the money going?
IEEFA's Clark Williams-Derry said oil companies have sought to stockpile cash reserves and pay down debt to improve their balance sheets:
The cynical way to describe the oil industry's financial playbook is: 'Pray for war.' The supermajors need periodic price spikes just to shore up their finances:
Profit and cash flow bonanza 'may not be sustainable'
Oil and gas majors have already demonstrated how they plan to use their bumper profits and cash flows:
“The full range covers mergers and acquisitions, maintenance capex, investment in new projects (renewable or hydrocarbon), debt reduction, and finally, dividends and share buybacks,” Mould said:
API: Windfall taxes 'don't lower prices for consumers'
Alongside Trump's criticism, political pressure on the oil and gas industry's wartime profits has been growing:
Campaigners have called on policymakers to impose higher taxes on energy majors to help fund climate-resilient infrastructure:
