The economy today
Should oil company super profits be taxed?
Audio 04:06
The oil giants TotalEnergies, Chevron and ExxonMobil could well record historic quarterly results (photo illustration).
AFP/File
By: Dominique Baillard Follow
3 mins
Oil companies are raking in record profits on the back of rising oil prices.
The publication of the wonderful results of the first quarter revives the debate on an exceptional tax on their profits.
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At a time when prices at the pump are soaring, the oil industry's bonanza is shocking and arousing greed.
According to a Bloomberg estimate, the jackpot will be $34 billion in the first three months of the year for the five largest oil companies in the world.
Historic quarterly results.
Unheard of since 2011.
TotalEnergies
, which opened the ball for results on April 28, made half of its profit for the whole of 2021 in three months – if we exclude the provisions announced to initiate a partial withdrawal from Russia.
US giant Chevron quadrupled its profit.
For the other American super-major, ExxonMobil, the profit only doubled because of provisions for its departure from Russia.
Vladimir Putin, with his war on Ukraine, propelled the barrel to 114 dollars on average in the first quarter.
As a result, it recovers the assets of Western private companies with one hand and returns them in the form of windfall profits with the other.
Benefits that should benefit consumers, say elected Democrats in the United States
It is in the United States and the United Kingdom that the debate on the taxation of this exceptional income is the most virulent.
In the United States, two elected Democrats made this exceptional tax proposal a month ago.
They want to redistribute it directly to households.
But the administration turns a deaf ear.
The debate focuses on the use of these super-bonuses.
The US government wants them to be reinvested in local production and not abroad and no longer simply redistributed to shareholders.
However, this is the chosen option.
Dividends are on the rise, as are share buybacks, which help to boost the stock market price.
In London, British Finance Minister Rishi Shunak hinted last week that he could introduce this surcharge on companies that do not invest enough in the deposits in the process of depletion in the North Sea.
An opening no doubt intended to reassure public opinion, since in reality both BP and Shell have already provided for investment expenditure in this region.
The proposal supported by Labor therefore has very little chance of succeeding.
The results of the two companies listed in London are expected this week.
This could revive the debate.
In the European Union, only Italy has dared to impose a temporary tax on energy companies
Rome must generate 4 billion in revenue with this new tax with the blessing of the European Union.
Brussels encourages its members to tax them to finance the aid provided to the end consumer.
But most Member States prefer to discuss with these companies, which have become essential interlocutors in resolving the energy crisis.
In France, TotalEnergies grants a rebate of 10 cents on a liter of fuel and its boss Patrick Pouyanné remains reserved on investments to increase production.
They are made at costs that are too high to support a demand that is set to decrease.
With climate change, companies are preparing not for peak production, but for peak demand.
The French company now favors investments in liquefied natural gas and renewables.
► IN BRIEF
To watch today: the emergency meeting of European energy ministers
Russian gas will be discussed once again, to clarify how European companies should pay Gazprom's bill.
And above all, take stock of the avenues for changing suppliers.
Hungary has said it will veto new energy sanctions.
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