Oil giants reap the profits, while citizens and the environment pay the price

The Guardian newspaper revealed that nine oil companies are heading to achieve profits exceeding $95 billion during the third quarter of this year. The British newspaper added, based on an analysis conducted by the investment brokerage firm AJill Bell, that these large gains come in light of the war that has been going on for months in the Middle East, and the resulting rise in fossil fuel prices.

Aramco is in the lead!

The state-owned Saudi Aramco and the British BP are at the forefront of the largest oil companies in the world in achieving profits. Aramco is expected to top the list of companies with the most profits during the third quarter.

Experts expect the company, with a market value of $1.7 trillion, to record a 7 percent increase in its quarterly net income, to reach $30 billion, despite being targeted by the Iranian-backed Houthi forces, according to what the Guardian newspaper reported.

As for the British company BP, it recently announced that during the period extending from July to September, it recorded quarterly profits amounting to about 8.46 billion dollars. These profits are the highest for the company since 2008.

The Trade Onion website explained that the high profits in the sector are supported by refining operations, which benefit from high fuel prices and shrinking supplies.

It is noteworthy that about 10 percent of the global refining capacity declined during the current year due to the war and the Ukrainian attacks on Russian refineries. In addition, the "restrictions" imposed by China and Russia on exports of petroleum products have increased the tightness of supply in the markets, according to what was pointed out by the American "CNN" network website.

The world's major oil companies benefited from the rise in global oil prices to record levels exceeding $126 per barrel, due to the US-Israeli war on Iran. The Guardian newspaper notes that major oil companies exploited the “largest disruption” in fossil fuel supplies in the history of markets in order to boost their profits.

The war in the Middle East caused turmoil in global oil markets, especially after the paralysis of supplies in the Strait of Hormuz, which is the global energy and trade artery (through which a fifth of global oil consumption passes).

The ordinary citizen and the environment pay the price!

Activists warn that millions of families are bearing the consequences through higher energy bills and a worsening climate crisis. Oil is a product that is involved in almost every detail of our lives. It is used in transportation, manufacturing, and energy generation, in addition to being the raw material for many secondary products, according to the “Invasting” website.

Forbes magazine believes that the rise in oil prices affects inflation rates, consumer income and spending. The Vangord website indicates that the ongoing turmoil in the energy sector poses challenges to economic growth, inflation rates, and monetary policy, as the European continent is considered the most vulnerable to the risk of a shock characterized by stagflation.

Supply shocks from the energy crisis are also likely to delay interest rate cuts, especially in the United States. Moreover, geopolitical uncertainty may put pressure on both stocks and bonds at the same time.

On the other hand, the “Carbon Majors” database indicated that “Aramco’s production of fossil fuels made it the company most responsible for carbon emissions in human history.” Next comes Chevron and Exxon Mobil.

The Guardian newspaper quoted Mike Childs of the environmental protection organization Friends of the Earth as saying: “Big oil companies are reaping huge profits, while millions of people struggle to save on their energy bills, while the planet is burning.”

The same spokesman continued: “Instead of investing in cheap, local renewable energy sources, which would reduce bills, enhance energy security, and provide new job opportunities, the fossil fuel industry is waging a battle to obtain approvals to extract more oil and gas.”

He continued: This would increase our connection to a polluting energy system, exacerbate the climate crisis, and expose communities to extreme heat waves, floods, and storms.