US oil and gas companies set to make tens of billions more from wartime oil prices in 2022

The US upstream oil and gas industry is projected to earn between $37 billion and $126 billion in additional profits in 2022 due to rising oil prices. The report argues that these gains are driven by global market integration and that companies may prioritize investor returns over increasing domestic production. It advocates for a windfall profits tax to return these gains to consumers.

• The US upstream oil and gas industry is projected to receive a windfall of $37 billion to $126 billion in 2022, depending on average oil prices. An average price of $88 would result in $37 billion in additional earnings, while an average of $120 could increase earnings by $126 billion compared to pre-war scenarios.
• Total projected free cash flow for 2022 could increase from $128 billion (in a $70 price scenario) to $253 billion (in a $120 price scenario).
• The top ten earners in the industry could collectively earn nearly $50 billion in additional profits. Specifically, ConocoPhillips, Chevron, and Occidental each have the potential to earn an additional $6.5 billion to $7.5 billion if prices average $120.
• High oil prices may not lead to a rapid increase in US domestic production because drillers cannot immediately increase output and Wall Street pressure for "capital discipline" may encourage companies to return profits to investors via buybacks and dividends.
• US gasoline prices are linked to global markets due to the 2015 lifting of the crude oil export ban, meaning domestic drilling cannot lower prices. Additionally, the export of liquefied natural gas (LNG) tends to increase domestic gas prices.

APA

Stockman, L., Tong, D., Donaghy, T., & Milin, Z. (2022). US oil and gas companies set to make tens of billions more from wartime oil prices in 2022. Global Witness. https://globalwitness.org/en/campaigns/fossil-fuels/us-oil-and-gas-companies-set-to-make-tens-of-billions-more-from-wartime-oil-prices-in-2022/

Chicago

Stockman, Lorne, David Tong, Tim Donaghy, and Zorka Milin. US oil and gas companies set to make tens of billions more from wartime oil prices in 2022. Global Witness, 2022. https://globalwitness.org/en/campaigns/fossil-fuels/us-oil-and-gas-companies-set-to-make-tens-of-billions-more-from-wartime-oil-prices-in-2022/.

Wikipedia

{{cite report |last1=Stockman |first1=Lorne |last2=Tong |first2=David |last3=Donaghy |first3=Tim |last4=Milin |first4=Zorka |title=US oil and gas companies set to make tens of billions more from wartime oil prices in 2022 |publisher=Global Witness |date=2022 |url=https://globalwitness.org/en/campaigns/fossil-fuels/us-oil-and-gas-companies-set-to-make-tens-of-billions-more-from-wartime-oil-prices-in-2022/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockman2022oil, author = {Stockman, Lorne and Tong, David and Donaghy, Tim and Milin, Zorka}, title = {{US oil and gas companies set to make tens of billions more from wartime oil prices in 2022}}, institution = {Global Witness}, year = {2022}, url = {https://globalwitness.org/en/campaigns/fossil-fuels/us-oil-and-gas-companies-set-to-make-tens-of-billions-more-from-wartime-oil-prices-in-2022/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }