Exxon Mobil is breaking records again. The oil major posted earnings close to $56 billion in 2022, just after its competitor Chevron says it made $36 and a half billion last year.
"Exxon Mobil has benefited from the high crude oil and natural gas prices. At the same time, they've been increasing their production around the world from investments that they made several years ago," said Andy Lipow, president of Lipow Oil Associates.
Analysts say the war in Ukraine and projected higher worldwide demand continue to bump oil prices up.
"As we move forward and pass the pandemic into the reopening of the Chinese economy, we're seeing world oil demand increase. And in 2022, we were relying on strategic petroleum reserve releases, as well as other oil releases around the world, to buy us time to figure out how the Russian invasion of the Ukraine was going to play out in the oil markets," Lipow said.
Crude oil prices per barrel still hover around the $80 mark. That means what you pay at the pump is staying up too — price per barrel influences more than 50% of what you pay.
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"And that's a that's a major tipping point if it goes below 80. That's that takes a lot of pressure off pump prices," said Andrew Gross, spokesperson for AAA.
AAA says national gas prices are more than $3.50 for a gallon of regular unleaded.
"I’ve noticed a lot that they’re going back up and it’s ridiculous," said Crystal Robinson, a Houston resident.
Consumer watchdog groups argue high profits and high prices mean oil companies should pay higher taxes.
"We subsidize this industry up and down and know we subsidize all forms of energy. But, you know, this is not a public charity," said Alan Zibel, a research director at Public Citizen.
The White House is deeply critical of big oil’s profits last year, even calling for a windfall tax — like the one the European Union levied on Exxon.
"Oil companies' record profits today are not because they're doing something new or innovative. Their profits are a windfall of war," said President Joe Biden.
Exxon’s CEO told CNBC they’re answering the call to increase production and that windfall taxes would hurt new investments and not help lower prices.
"You don't solve bad policy with worse policy by taxing the investments in the companies that are making those investments, trying to solve that issue," said Darren Woods, CEO of Exxon Mobil.
