Banks, oil companies and gun manufacturers form a trio that reliably drives profits even when the global economy trembles. The ongoing war in Europe has boosted energy prices and lit an inflationary fuse, fueling higher interest rates and a squeeze on everyday households. In this climate, the biggest oil players have posted astonishing profits, with private companies around the world edging toward figures not seen since 2022, helped by sustained demand as economies recovered from the worst years of the pandemic and the war’s energy shock kept gas and oil prices elevated.
Last year’s earnings were among the strongest on record. The European market posted a record overall, with profits soaring well beyond 2021 levels. Even in the United Kingdom, Shell reported its best results in more than a century, while ExxonMobil, a top player in the United States, reported profits exceeding 52 billion dollars—an increase of roughly 142 percent from the prior year. Executives pointed to favorable market conditions and stronger energy demand as key drivers of this surge in earnings.
Meanwhile, in the broader North American landscape, other major players also posted strong results. A major American energy company reported profits around 34 billion euros, and Phillips 66, another prominent name, exceeded 16 billion as the company reached a ten-year high. Across Europe, TotalEnergies and others in the so-called Big Oil cohort are absorbing the spillover effects of market dynamics linked to supply restrictions and resilient demand. Analysts note that the energy crisis, driven by the Ukraine conflict and elevated gas and oil prices, has kept this sector firmly in the spotlight, with industry veterans citing a long run of robust performance from this powerful group.
European producers have increasingly turned their attention to gas, viewed as a bridge fuel that helps nations transition toward cleaner energy. Gas, particularly liquefied natural gas (LNG), has become a central commodity in European imports, reducing dependence on pipeline gas from Russia. This shift comes as prices for gas, propelled by competition between European and Asian buyers, rose to levels far above typical, prompting nations to reassess their energy mix and investments in LNG infrastructure as a hedge against future shocks.
The war’s impact on prices has been profound, according to market analysts. Prices began rising when Russia cut supplies to Europe in 2021, and the situation intensified after the Nord Stream disruptions and sanctions tied to the invasion. A combination of reduced production at several key European nuclei, including nuclear reactors and hydropower facilities, further tightened supply and pushed hydrocarbon costs higher. In short, the combination of supply shocks, political actions and weather-related challenges created a perfect storm for energy prices across the continent.
With windfall profits under debate in several regions, discussions about taxing unexpected gains from oil companies have gained renewed momentum in the United States. The debate centers on whether extraordinary profits should be subject to additional taxes as governments seek to curb windfall earnings during crises. In the United Kingdom, related measures have been implemented to tax sudden profits from oil and gas production, a move intended to fund public needs while limiting the long-term impact on global operations. The result is a policy landscape that touches many global players as they navigate changing tax regimes and public expectations.
In parallel, strategic decisions from major oil groups are drawing attention. BP has announced plans to slow its pace on certain fossil fuel initiatives and to pursue a more measured approach to reducing production. Instead of lowering fossil fuel output as quickly as promised, the company is recalibrating its path and committing to a sizable cut, albeit with an adjusted timeline. These moves come as the sector faces pressure to balance earnings with climate commitments. Industry observers note that shifts like these could set the tone for how other majors respond in the near term, with the overarching question being whether a broader realignment toward lower emissions will accelerate or stall in the coming years. Analysts emphasize that any such trend would depend on policy signals, market demand, and the pace of technological progress in energy alternatives, as well as the sector’s ability to maintain its competitive edge in a volatile global market, where energy security remains a top priority for governments and consumers alike.