SAN FRANCISCO – ExxonMobil posted record windfall profits in 2022 of $56 billion, according to the oil giant’s fourth-quarter earnings report, released Tuesday. Hard-working Americans getting fleeced at the gas pump are to thank for the company’s obscene earnings.
The financial report by Exxon, the largest U.S. oil company by market cap, comes days after Chevron posted its fourth-quarter earnings of roughly $36 billion in 2022.
A portion of the enormous gains can be attributed to the global energy market disruptions caused by Russia’s invasion of Ukraine and pandemic-induced inflation. But the sky-high gas prices Exxon and other big oil firms forced upon consumers, most notably in California, have undoubtedly contributed to the company’s eye-popping earnings last year.
“Exxon is reaping record profits for investors and company executives, much of it coming right from the pockets of hard-working families forced to pay outrageously high gas prices during much of last year,” said EWG President and California resident Ken Cook. “These obscene earnings made on the backs of everyday consumers should spur action by lawmakers in Sacramento to quickly adopt legislation to penalize future gas gouging by greedy oil companies in the state.”
Late last year, Gov. Gavin Newsom urged members of the legislature to take up a measure he put forth to punish big oil companies that participate in future price gouging.
The proposal, embodied in legislation introduced in a special session in December by Sen. Nancy Skinner (D-Berkeley), would empower the California Energy Commission to impose civil penalties on oil refiners that exceed the profit gap limit. Lawmakers could tap the resulting special fund created by these penalty fees to issue refunds to California families.
Some of Exxon’s profits are likely helping fund the oil industry’s deceptive campaign to repeal a new law in California to block the expansion of oil and gas drilling in vulnerable communities around the state whose residents are largely Black and Latino.
“Between rampant price gouging and deceitful efforts to overturn a California law to protect communities of color from more dangerous oil drilling, it’s clear Big Oil has far too much power over the people in the state,” said Cook.
The campaign would block the law that bans new drilling operations from within 3,200 feet of homes, schools and hospitals for at least two years. Led by the California Independent Petroleum Association, of which Exxon is a member, the campaign claims to have gathered enough signatures to place a referendum on the 2024 ballot.
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The Environmental Working Group (EWG) is a nonprofit, non-partisan organization that empowers people to live healthier lives in a healthier environment. Through research, advocacy and unique education tools, EWG drives consumer choice and civic action.
