Big Oil Cashes In on Surging Fossil Fuel Prices
As people around the world pay high oil and gas prices, Big Oil cashes in. Price volatility exposes how important it is to phase out fossil fuels in favor of more stable, reliable, and cheaper renewable energy.
Surging Fossil Fuel Prices Drives Windfall Profits for the Wealthy Few
Combined, the five largest international oil companies made $131 billion in profits in the first nine months of 2026.(1) That’s $67 billion – or 105% – more than the same period last year. Third quarter profits alone were around $54 billion and surged 148% higher compared to the same period last year.
In the third quarter of this year:
- Exxon led profits with $15 billion (up 113% from Q3 2025),
- Shell raked in $11 billion (up 108%)
- Chevron followed closely with $10 billion (up 165%)
- TotalEnergies brought in $8.3 billion (up 157%)
- BP more than tripled profits with $9.2 billion (up 312%)
Over the last quarter in particular, the companies’ windfalls are driven by staggering jumps in profits from oil refining and high oil prices. U.S.- and Russian-driven wars led to a slew of refinery outages, and the companies able to keep refining oil at consistent levels have raked in exceptional profits.
Iran has struck refineries in Saudi Arabia, Kuwait, Bahrain, and the UAE, and Ukraine has repeatedly struck Russian refineries. Many of the refineries impacted are particularly important to global diesel supplies, which is why diesel prices in particular have skyrocketed, hitting record highs in September.
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“I prefer the world of disruption to the peaceful world,” Patrick Pouyanné, CEO of the French energy company TotalEnergies, recently quipped. He said the energy crisis ignited by war in the Middle East had provided “plenty of opportunities if you’re able to capture them.” “We’re doing really well by being integrated,” Pouyanné explained. “Integration means your refineries in Europe, which you thought were liabilities, are suddenly becoming goldmines.” |
When oil and gas companies make windfall profits, the world’s richest elites benefit the most. An analysis of the distribution of profits among publicly listed oil and gas companies found that in 2022, U.S.-based firms pocketed the largest share, and the richest Americans overwhelmingly benefited: 50% of U.S. firms’ profits went to the wealthiest 1% of individuals.
Meanwhile, people around the world are paying more for gasoline, and diesel prices are up 41% in Asia, 59% in the EU, and 63% in the U.S. since the start of the U.S.-driven war against Iran.(2)
Recent price volatility drives home how urgent it is to transition away from fossil fuels and establish more stable, reliable, and cheaper energy.
Tax Big Oil Superprofits
People around the world demand action.
In the United States, 70+ organizations are calling on Congress to stop Big Oil’s war profiteering by implementing a windfall profits tax on the fossil fuel industry. With this tax, Big Oil would pay on extra profits while the price of oil is above last year’s average. The proposal is similar to what the U.S. implemented in the 1980s. Revenue from that tax would go back to the public — not into the pockets of CEOs and shareholders — to cushion working families from fossil-fueled price shocks.
In France, campaigners have called for a permanent windfall tax on fossil fuel profits. The National Assembly summoned TotalEnergies CEO Patrick Pouyanné to answer questions about the high profits.
In Portugal, the government approved a 33% windfall tax on extraordinary profits earned by oil and refining companies due to the Iran War. The Portuguese Finance Ministry said, it is “fair and necessary to create a solidarity mechanism by taxing part of these exceptional profits to help finance measures to offset the impact of higher fuel prices on households and the most vulnerable businesses.”
In Australia, there is overwhelming support for a 25% tax on gas exports. This would require the gas industry and its financial backers to pay their fair share every time gas is exported, not just when companies report windfall profits. People and organisations in Australia argue that a flat 25% tax on gas exports could have a range of benefits, including contributing to a compensation fund for local and regional communities hit by climate impacts.
In the UK, Green Party leader Zack Polanski has called for oil and gas companies that have made bumper profits during the war to be taxed at a higher rate to help fund climate mitigation measures and wildfire protection.
These efforts have it right, and others should follow suit. People around the world are suffering the consequences of fossil fuel dependence. Now is the time to tax oil and gas superprofits.
Break Free from Fossil Fuels
Fossil fuel executives and their wealthy shareholders reap the rewards when prices jump. No corporation should make billions from war, suffering, and energy insecurity.
Fossil fuel dependence makes economies more volatile. Fossil fuels also help the wealthy few profit while they pollute the most. The richest 8 million people pollute more than the poorest 3.5 billion. Accelerating an equitable transition towards renewable energy is essential to a more stable and affordable future.
Two years ago, at the United Nations Climate Change Conference in Dubai (COP28) all governments promised to transition away from fossil fuels. Wealthy nations must step up and lead – including by taxing, regulating, and even seeking ways to break up and wind down Big Oil companies headquartered in their countries.
1. This data is calculated using net adjusted profits from Bloomberg Terminal, which allows a more consistent analysis of companies’ performance and may differ slightly from the figures reported by oil companies.
2. This data is calculated using the growth of diesel prices from the start of the Iran war until 2nd November and was taken from Bloomberg Terminal.