Global 2000: Big Profits For Big Oil, As Russian Sanctions Combine With Pent-Up Demand

Global 2000: Big Profits For Big Oil, As Russian Sanctions Combine With Pent-Up Demand

Crown Prince Mohammed bin Salman pushed to take Saudi Arabian Oil Company public. It now has the highest market capitalization of any company in the world. MbS speaks during the Gulf Cooperation Council (GCC) Summit in Riyadh, Saudi Arabia, Tuesday, Dec. 14, 2021. (Bandar Aljaloud/Saudi Royal Palace via AP)

With gasoline and diesel hitting record prices amid a post-pandemic surge in driving and flying, it’s no surprise that smart guys like Warren Buffett have been loading up on shares of some of the world’s biggest energy companies including Chevron and Occidentals Petroleum. Giant profits are a welcome turnaround for Big Oil, after the 2020 pandemic lockdowns froze demand and drove oil prices temporarily down to zero. Chevron posted first-quarter revenue of $54.4 billion, 75% higher than a year ago, thanks to surging oil and gas prices. Its shares are up 50% in a year. And consider Saudi Arabian Oil Company; the world’s second-biggest by market value (after Apple) is also the most profitable, scoring $105 billion last year. Energy companies were big movers on this year’s Forbes Global 2000 list, with many jumping more than 300 points in overall rankings.