In 2021, the world was in a shutdown because of COVID and oil company profits were nonexistent. In 2022, the world opened up and needed oil and gas to move around and profits are now historically high. With the turnaround the biggest companies or the 7 sisters have all benefited with the biggest companies benefiting the most.

In an article by Sabrina Valle of Reuters, the biggest oil company posted a $56 billion net profit in 2022 or making $6.3 million a hour. During the COVID pandemic, Exxon Mobil made deep cuts which meant the 2022 profits were bigger.

In 2022, Exxon distributed $30 billion in cash to shareholders.

Exxon’s cash flow from operations increased to $76.8 billion up from $48.1 billion in 2021. The company typically maintains a $30 billion in cash or cash equivalents.

The company’s spending on new oil and gas projects was $22.7 billion up 37% from 2021. CEO Darren Woods said the number could rise to $25 billion.

Linking to dividend paying stocks, the oil industry has been a very good to invest in for a long time and it appears the case will continue for the next few years. One of the industries which benefit the oil and gas industry is the car companies and it will take a number of years before EVs come close to Internal Combustion sales. If everyone on your block has a EV, then the tipping point has likely passed and it is possible demand for oil and gas will drop.

There are more questions than answers, till the next time – to raising questions.