Oil companies set to break record payouts amidst climate outcry

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Despite public rage, BP, Shell, Chevron, ExxonMobil, and TotalEnergies will distribute around $100 billion.
Despite public rage, BP, Shell, Chevron, ExxonMobil, and TotalEnergies will distribute around $100 billion.

Despite public rage, BP, Shell, Chevron, ExxonMobil, and TotalEnergies will distribute around $100 billion.

Record Payouts Amid Public Outrage:

The world’s five largest listed oil companies, known as the “super-majors” – BP, Shell, Chevron, ExxonMobil, and TotalEnergies – are anticipated to provide investors with unprecedented payouts exceeding $100 billion for 2023. 

This comes against a backdrop of heightened public outcry concerning fossil fuel profits.

Previous Year’s Payouts and Profit Surge:

In 2022, these oil giants disbursed a staggering $104 billion to shareholders through dividends and share buybacks, following a year of historic profits driven by global energy market disruptions post-Russia’s invasion of Ukraine. This led to soaring Brent crude prices and record gas rates across Europe.

Anticipated Record Distributions Despite Market Fluctuations:

Despite the potential impact of weaker commodity market prices on profits, financial analysts at the Institute for Energy Economics and Financial Analysis (IEEFA) forecast even larger shareholder distributions in 2023. 

The companies are poised to maintain or increase payouts to investors, signaling a persistent commitment to rewarding shareholders.

Climate Emergency Concerns and Extreme Weather Events:

The record payouts coincide with a year expected to register as the hottest on record, further accentuating concerns over the climate emergency. 

The world has witnessed a series of extreme weather events, underscoring the urgency of climate action amidst substantial fossil fuel industry payouts.

IEEFA Analyst’s Projections:

Trey Cowan, an analyst at IEEFA, highlighted the pace of distributions, signaling a potential record for shareholder payouts in 2023, surpassing the previous $104 billion disbursed in 2022. 

This projection persists despite ongoing concerns about the climate crisis and its consequences.

The projected record payouts from the oil industry giants serve as a focal point for ongoing discussions around sustainable investments, corporate responsibility, and the imperative need for a transition towards renewable energy in the face of escalating climate challenges.

Gary Monroe

Gary Monroe is a seasoned contributor to the Los Angeles Business Magazine, where he offers insightful analysis on local business trends and economic developments. With a focus on Los Angeles' dynamic commercial landscape, Gary's articles provide valuable perspectives for entrepreneurs and business professionals in the city.

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