Swimming in cash, Chevron plans a $75 billion slap in the face to drivers
CNNJan 27, 2023
On Friday, Chevron Corp. revealed that it pocketed its highest-ever annual profit in 2022, with its quarterly earnings report detailing profits of $35.5B. The company's shares rose 53% while other sectors fell.
News that Chevron has exceeded its previous record net profit, set in 2011, by around $10B kicked off the publication of global earnings across the energy sector. According to analysts, the spike in fuel prices over the past twelve months — prompted by the rising demand for energy amid Russia's invasion of Ukraine — has primed Western energy companies to a combined profit of $200B last year.
Chevron has published record profits, yet is continuing to exacerbate the cost of living struggles for US consumers to reward shareholders. The company is swimming in cash and has a responsibility to its customers to make petroleum consumption — a basic necessity in the US — more affordable.
The investment Chevron executives are making in the company is not just about lining their own pockets — it's about future-proofing. Chevron's capital spending is still well below pre-COVID levels and, although oil prices have fallen from the highs of last summer, the reopening of China's economy will keep demand for crude oil high and maintain the pressure of global supplies.
There is a 50% chance that the real price of gas will be at least $3.59 per gallon in the US in April 2023, according to the Metaculus prediction community.