Big Oil rakes in billions as prices soar. Lawmakers want them to pay us back

Big Oil rakes in billions as prices soar. Lawmakers want them to pay us back

New York (CNN Business) – As crude prices surge, oil companies are raking in money — enormous profits gained from practically no extra investment.

ExxonMobil (XOM) made a $23 billion profit in 2021, its largest in seven years. And as oil prices rise, it’s expected to make nearly $33 billion this year. BP (BP), meanwhile, earned $12.8 billion in 2021 and is forecast to earn $15.6 billion in 2022.

This level of enormous earnings growth has driven talk on both sides of the Atlantic about the need for a windfall profit tax on Big Oil. Those taxes could provide direct financial assistance to consumers struggling with high energy costs.

Both the United States and United Kingdom have imposed windfall profit taxes in the past in with broad political support. But this time around, support has been mostly limited to liberal parties in both nations.

Prime Minister Boris Johnson has opposed the idea. His finance minister, Rishi Sunak, is expected to lay out the British government’s plans to help citizens deal with rising energy costs Wednesday.

In Washington, Democratic supporters of a windfall profit tax argue it’s the only fair way to help people who can’t afford to drive or heat their homes.

“We need to curb