Oil Companies Earn Record Profits
British Petroleum (BP), Shell, Exxon-Mobil...the major oil companies are reporting significant - and in some cases - record profits. They are doing so at a time when fuel prices are high. How does this relate to the climate crisis? Here is an article about BP and a story from PBS.
BP dials back climate pledge amid soaring oil profits
The British oil giant wants to decrease its carbon emissions by between 20 and 30 percent by 2030. It previously aimed for a 35 to 40 percent reduction.
Read in The Washington Post: https://apple.news/ASsFTos_hQoi8YOGiP3-aRg
https://www.youtube.com/watch?v=KagUHb6qxyQ
I think it's outrageous that these companies post record profits while gouging the working class at the pump and simultaneously walking back on commitments they made to lower their impacts on the climate. However, I am not particularly surprised. They are corporations. Their primary goal is profit. They are operating in the exact way they are incentivized to. It would be surprising if they didn't.
ReplyDeleteJoseph, I totally agree what oil companies are doing is so wrong. They drill into the earth contributing to much of climate change and do not seek out to help much. What is most important to these companies are their profits and what they can gain through it. The companies abuse the system and make people pay prices that are unreasonable and they end up gaining from the misfortune of other and the environment.
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ReplyDeleteIts always surprising to me how these big corporations make these pledges/promises/goals, then back out of them with no repercussions. Because BP was considered a pioneer when coming to their climate pledge, it worries me that other companies will follow this trend. In an NBC article, Patrick Galey discussed how 25 of the worlds largest companies' climate promises fall short of creating the emission change that we need to really change the trend of climate change in a good direction. Link to NBC article: https://www.nbcnews.com/science/environment/net-zero-promises-major-corporations-fall-short-climate-groups-say-rcna14460
ReplyDeleteWhile I find it unconscionable that oil companies are raking in major profits from recent events, taking advantage of the situation between Russia and Ukraine (where Russia has faced sanctions over the invasion), it is expected that oil companies striving to maximize profits will use this opportunity to raise prices with little regard for the consequences. Interestingly, BP and Shell have claimed to their shareholders that they have begun investing in “wind and solar” and are beginning a “transition” to cleaner energy (Shell and BP claiming an investment of 25% of their capital expenditures), although these claims seem dubious:
ReplyDelete“Watchdogs say the 25 percent figure is misleading, as it includes investments such as those Shell is making in natural gas, a fossil fuel. The group Global Witness last week filed a complaint with the U.S. Securities and Exchange Commission, accusing Shell of misleading shareholders by including natural gas investments in the category of “Renewables and Energy Solutions” in its annual report. Shell says its report follows all SEC rules.” (Source: Washington Post)
While the claim that Shell and BP would invest in renewable energy was a welcome one to shareholders, it appears that such claims were only made to give the appearance of caring about climate change while their true motivation has been to expand profits further with impunity:
Shell, BP boost profit, sink investment in renewable energy (Source: https://www.dw.com/en/shell-bp-boost-profit-sink-investment-in-renewable-energy/a-64656800).
Due to the monetary incentives for oil companies like Shell and BP (among others) to improve their image such that they appear to care about the climate while simultaneously seeking greater profits (without consideration for the negative externalities), we should be cautious to trust similar promises by oil companies. Instead, we should first ensure that their commitment is credible by focusing on what incentives and disincentives can be applied to force the companies to comply.
When hearing these ridiculously large numbers of the profit that the oil companies are raking in I can't help but think "oh this is the price tag put on the death of our climate." Which is definitely a little extreme and existentialist but it does genuinely feel like at this point since theres been really no measurably change to stand up to their own greed, this is the quantifiable amount that these corporations have decided is worth it for them to destroy the planet. Ive heard also the argument that even if its not reflective of the market its okay for the oil companies to raise prices because then it limits the amount of people who are using natural gas and contributing to the CO2 buildup. All this tells me is that only the rich are allowed to pollute the environment. When I put myself in the shoes of oil executives it feels like the only logical answer is that they think they will be able to use their wealth to avoid climate change.
ReplyDeleteAside from my rantings on the moral failings of oil execs, I do think that things like the windfall tax that Biden is trying to push according to the PBS news hour video would be a good solutions. I think there are more things we can do in the name of regulation and taxes to try to prevent some of this greed. As well as detrimental effects to our planet.
Hi Trinity. I completely agree with you on that the people in power are exploiting the each and its resources specifically in oil. While everyone contributes to CO2 build up large cooperation are also largely to blame. In addition, celebs use private jets are the time which pollutes the planet far more than an average person.
DeleteSeeing oil companies earning record profits is a big problem and shows that our environment is in danger due to it causing more CO2 emissions. The bigger problem isn't that there are record sales or that they create a ton of CO2 emissions; it's that oil companies in America are not going away. Oil companies in our country have become so rich and powerful that they won't be able to be taken down. In some ways, they control our control, so we don't have high-speed rail bullet trains and more electric vehicles. The oil companies are so rich that they ensure everyone drives cars and block out advances like these high-tech trains and electric vehicles. It's just like tobacco companies. Everyone knows that cigarettes and tobacco are harmful to you, and many people have protested against these companies by exposing the health issues they create. Still, tobacco companies have gotten so rich and powerful over the years that taking them down is hard. I think a good solution to help counter these oil companies is to try switching to new energy, like electric cars, and use fewer CO2 emissions in your daily life. The best fight against the oil companies would be to use other alternatives that don't help them profit and continue their way of life.
ReplyDelete(source: https://www.bing.com/search?q=energy+sources+other+than+fossil+fuel&qs=UT&pq=energy+sources+other+tha&sc=10-24&cvid=36D3164C5D2E42CB902A97C75A14BBC8&FORM=QBRE&sp=1&ghc=1 )
This source explains that many types of energy sources are being tested in the modern day, some might not be the best, but a lot are better than fossil fuels which are very harmful to our planet.(source: https://www.bing.com/search?q=energy+sources+other+than+fossil+fuel&qs=UT&pq=energy+sources+other+tha&sc=10-24&cvid=36D3164C5D2E42CB902A97C75A14BBC8&FORM=QBRE&sp=1&ghc=1 )
This source explains that many types of energy sources are being tested in the modern day, some might not be the best, but a lot are better than fossil fuels which are very harmful to our planet.
Many oil companies know what they are doing and they do not care. They only care about the profits they earn. A story about one of the oil companies, Exxon, can be found on this link: https://www.scientificamerican.com/article/exxon-knew-about-climate-change-almost-40-years-ago/.
ReplyDeleteWhile this profit data is outrageous and big companies like exxon, BP, etc, are certainly to blame, we are as well. Without us, there would be no profit, and from the data, we can clearly see that from our heavy reliance on gas and oil, we are affecting the companies morals/plans forward. I believe that we cannot defeat climate change without support and action from everybody, starting with society and the general population. With that being said, big oil companies should not take back their word and act on their greed. They play a big role in fighting climate change as well and when big companies like BP, who are leading and starting the change to clean energy change, other companies will follow close behind.
ReplyDeleteI found this cite, https://www.carbonbrief.org/oil-majors-not-walking-the-talk-on-climate-action-study-confirms/#:~:text=Due%20to%20the%20use%20of,has%20been%20emitted%20since%201965, that supports the Washington post's claims with supporting graphs and data as well that I found very interesting.
It's really disappointing yet not very surprising that big corporations like BP only advocate for clean energy and renewability when it is profitable to do so. Once they realize there is more money to be had in oil, they go right back to doing what they've always done. This calls upon a larger issue in corporations, where companies advocate for issues only for the good publicity associated with it. Again, it's really not surprising but nevertheless very concerning for the future were headed towards. Companies just say whatever it takes to increase their profit. As long as we don't hold them responsible for keeping their word, they hold all the power on our decreasingly stable climate.
ReplyDeleteIt is preposterous seeing that oil companies are making record profits off the people during the past year or so when gas prices were unreasonably high, this needs to be prevented in the future because it is hurting our planet even more. In other words, we need to find alternatives to oil such as lithium mining. This is much safer and climate-friendly because we are able to extract energy in replacement for oil specifically for cars where oil is used the most.
ReplyDeletehttps://www.pbs.org/newshour/show/salton-sea-lithium-deposits-could-help-ev-transition-support-economically-devastated-area
The article talks about how we are able to extract lithium ion from the world's largest lithium mining site near the sea of California. The podcast, it talks about how the demand for EVs is on the rise and that in the future we should depend on lithium more than oil.
Hi Kevin,
DeleteAlthough I believe lithium mining is a good alternative, I do not think it is the best. For instance, it is important to note that lithium mining is not without environmental impacts. Mining operations can disrupt ecosystems and require large amounts of water and energy. Additionally, lithium extraction can result in soil and water pollution if not done responsibly by qualifies people. Therefore, it is important to ensure that lithium mining is done in an environmentally responsible way, with proper regulations and oversight to minimize its impacts.
The fact that major oil and gas companies are making such a huge profit due to sanctions on Russian oil after the war in Ukraine attests to the interconnectedness of global politics and the environment. I think this article goes to show that some sort of regulation needs to be implemented on these companies because their incredible profit margin means there is effectively no incentive to reduce emissions since their profits are so large. I think the fact that these profits have led companies to back off commitments to reducing emissions is very telling, and shows that profit incentive is enough that they are unwilling to reduce emissions on their own.
ReplyDeleteI think that since we are in a time of conflict oversea via the war in Ukraine, this is helping the global demand increase while the supply decreases giving companies the right to increase prices. I found it interesting that they used the term "war profiteering" during the PBS video. They used this term to show that a good possibility that companies are choosing to not produce more oil so they can justify keeping there prices high.
ReplyDeleteAll of this has a direct impact on the climate crisis because we are still choosing to consume oil as a primary source of energy. War makes it a difficult time to switch to clean energy because a lot of the tools of war require large amounts of fossil fuels. Would changing to cleaner energy be easier during peace time? Or is it still possible to phase out fossil fuels during a time of military conflict?
Here is an article addressing this issue, specifically regarding the Ukraine War.
Deletehttps://time.com/6257491/russia-ukraine-war-climate-impact/
It seems to me that the record profits that oil and gas companies have observed is in direct conflict with the interests of humans as a whole. The profits that they are seeing are not being re-invested in their renewable energy projects at significant rates. I think that, as a society, we are rendering their behavior permissible because we are so heavily dependent on their products. Our discontent means nothing to them because they still will receive our money. We still depend on them to heat our houses. We still depend on them to fuel our cars to go to work and school in the morning.
ReplyDeleteI don't think that they'll change unless they are given a disincentive against continuing as they have. To their credit, I guess, fossil fuels are entrenched in our society. There's a lot of momentum behind them, and the inertia that fossil fuels possess gives them a certain amount of immunity to change; however, it seems childish to dismiss this inaction on their parts by saying "change is scary". As scary as change might be, it's necessary. I don't think that they have an excuse dismissing a lack of their change coupled with record profits at the price of all of us.
The fact that major oil companies like BP, Shell, and Exxon Mobil are reporting significant profits, even in times of high fuel prices, is quiet concerning when considering the ongoing climate crisis. These companies are major contributors to greenhouse gas emissions, which are resulting in global warming and other impacts such as loss of biodiversity and rising sea levels. BP's decisions to dial back its climate pledge in the face of rising oil profits is concerning. The company had aimed for a 35 to 40 percent reduction in carbon emissions by 2030, but has now decreased that target to 20 to 30 percent. This decision is indicative of the tension that exists between the oil and gas industries and the need to mitigate the impacts of climate change. It is important to hold these companies accountable for their contribution to the climate crisis and demand that they take action to reduce their impact.
ReplyDeleteBig oil companies take advantage of the ongoing climate crisis in order to achieve record high profits. It's pretty concerning that despite the promises they made to decrease carbon emissions by a certain amount, they would back up on that promise. It's not a big surprise that they're doing this; they are big corporations after all. Their main goal is to increase their profits; despite the alarming speed of global warming due to greenhouse gasses.
ReplyDeleteI think this news is quite concerning because of the on going issues with climate change and global warming. If we all hope to stop the effects of climate change, we have to do more and keep people/companies accountable for their actions. It was good to see that these companies pledged to reduce their carbon emissions, but we can't be okay with them turning back on their promises.
ReplyDeleteI concur completely, with what we've seen now from them breaking the promises they once established, it makes me question whether they will truly dedicate as much effort to reducing carbon emissions. The current situation shows that the company's actions reflect their focus and it isn't nearly as aggressive as adapting to help support climate change as it needs to be. Their previous pledges have fallen short, hopefully they can follow through in the future.
DeleteThis article was disheartening to read, but not surprising. It's sad how big companies with such a substantial impact on the environment get to change their stances so quickly. I think that it's important for major shareholders to push for companies like this to be accountable instead of just pursuing more money.
ReplyDeleteThis article is disappointing to read, but unfortunately not surprising. It's sad to see companies like BP take matters like reducing emissions, an extremely important of combatting climate change and saving the world to only treat it like a public relations stunt while millions of people around the world are facing the disasters effects of climate change. In this time, it's more important than ever for advocate's and experts to weigh in on stories like this to bring more and more public and governmental pressure onto shaping these companies to transition to investing into cleaner energy systems (wind, solar, hydro just to name a few) for a cleaner and sustainable future.
ReplyDeleteA careful observation of the history of international oil policy shows a deep connection between the actions of the Western Powers and their interest in middle eastern oil. Ever since the first world war, along with the fall of the Ottoman Empire, Europeans have been intervening in the Middle East to try to garner positions for major oil companies. This includes the 6 sisters from the United States, British Petroleum and Royal Dutch Shell. In the Sykes-Picot agreement, the British betrayed their agreement with the Arabs who fought with them against the Ottoman Empire and divided spheres of influence between Britain and France. Now, how does this relate to modern oil profits? The point of this analysis is to highlight that the Western Powers have had a long history of investing significant resources into developing their control of fossil fuels. This connects to the current statistic of $5.9 trillion being spent on fossil fuel subsidies globally in 2020.
ReplyDeletehttps://www.un.org/en/climatechange/raising-ambition/renewable-energy#:~:text=Cheap%20electricity%20from%20renewable%20sources,helping%20to%20mitigate%20climate%20change.
The intellectual community has known about the climate warming effects of CO2 emissions since the late 19th century. Any corporation dealing in such massive quantities of carbon emitting resources is directly responsible and completely aware of the harm they are causing to the environment. British Petroleum, and other corporations like it, should be nationalized and used only for the betterment of society - not run as a money making machines which will always choose the shareholder value increasing over making our planet livable in 100 years.
ReplyDeleteI think it's absolutely absurd that these oil companies are posting record profits while hurting the working class at the pump. This shouldn't be allowed governments should place some restrictions on the amount they can price oil.
ReplyDeleteIt's starting to become less and less of a surprise when I see big corporations brag about their massive profits with materials that hinder the overall health of the climate and our world when they know just how bad their business is for the world we live on. It juts reminds me of the main philosophy that people follow when they discuss climate change, which is "it doesn't affect me now so why should we do anything about it". If anything, all they care about is profit and it seems they will achieve a successful business at the expense of the planet's health. Here is an interesting article that explains how Exxon, a big oil company, knew about climate change for a while and choose not to do anything about it.
ReplyDeletehttps://www.scientificamerican.com/article/exxon-knew-about-climate-change-almost-40-years-ago/
As long as these avenues for fossil fuels have a market and people who will consume them, the damage they will cause will continue. This is why we need to have a massive push for renewable sources of power and clean modes of transportation, as people will follow the money. Oftentimes, these morals or health problems caused by fossil fuels are hand-waived away in favor of its cost efficiency, but once that goes away, there will be nothing left to defend.
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