The energy giant Shell has reported impressive earnings, aided by the recent increase in oil prices.
The oil company announced $6.2 billion (£5.1 billion) in earnings for the July–September period, a significant increase over the prior quarter.However, profits were lower than $9.4 billion during the same period last year due to a surge in gas and oil prices brought on by Russia’s invasion of Ukraine.While still lower than during that time, oil prices have recently increased.This is mostly because oil-producing countries that are part of the Opec+ group have reduced their output in order to support the market.The Middle East conflict might drive up the price of crude oil to $150 per barrel, from its current price of $85; the World Bank issued a warning about this earlier this week.
According to Shell, its profits for the last three months have increased by 23% over the previous quarter.It said that rising oil prices had allowed it to pump more gas and oil while also generating more revenue from trading and refining.Lower profitability at energy companies resulted from the spike in oil prices in 2022 that was followed by a decline earlier this year.But since the summer production cuts, the price of crude oil has increased once more.Opec+ members, led by Saudi Arabia and Russia, implemented the cuts because they were worried about a decline in worldwide demand.Moscow further accused the West of “interfering with market dynamics,” alluding to the embargo on Russian oil that was imposed after its invasion of Ukraine.
Drivers are already experiencing higher gas prices as a result of it.Shell declared after its results that it would repurchase $3.5 billion in shares to give back to shareholders. This year, the company will give $23 billion back to its stockholders.The payouts drew criticism from Jonathan Noronha-Gant of the climate action group Global Witness.”Shell’s shareholders remain some of the biggest winners of Russia’s brutal war in Ukraine and ongoing global instability,” he stated.”The turmoil in fossil fuel markets allows Shell to rake in enormous profits – but instead of investing in clean energy, the company has doubled down on oil, gas, and shareholder pay-outs.”
Charlie Kronick of Greenpeace said: “People are sick of watching oil bosses feign concern about the planet while slashing jobs and investment in renewables and ploughing money into dividends, share buybacks, and new fossil fuel projects.”Following his appointment in January, Wael Sawan, the company’s CEO, revealed plans to reduce at least 15% of the staff at the low-carbon solutions business and shifted the company’s strategy to focus more on oil and gas.The company said it would not comment further.