War profits for oil workers: 30 million per hour

The world's 100 largest oil and gas companies made more than $30 million in profits every hour in the first month of the US-Israeli war in Iran, according to an analysis commissioned by the British newspaper The Guardian. Saudi Aramco, Gazprom and ExxonMobil were among the biggest gainers after the conflict in March pushed the price of oil to an average of $100, giving the companies an additional monthly profit of $23 billion.

The analysis estimates that it will take months for oil and gas supplies to stabilize and return to pre-war levels, and companies could make $234 billion by the end of the year if oil prices remain at an average of $100. The analysis is based on data from leading analytics provider Rystad Energy, which was processed by Global Witness.

The Guardian points out that this extra profit actually comes from the pockets of ordinary citizens, who pay high fuel and energy prices for their households, but also from businesses facing higher energy bills. Dozens of countries have cut fuel taxes to help consumers, which means that these countries, including Australia, South Africa, Italy, Brazil and Zambia, have less money in their budgets for sectors such as health, education and social benefits.

In recent days, calls for the introduction of a tax on extra profits made by oil and gas companies during the war have been growing louder, and the European Commission is considering a request from the finance ministers of Germany, Spain, Italy, Portugal and Austria to "send a clear message that those who profit from the consequences of the war must contribute to alleviating the burden on citizens."

"This would allow the financing of temporary relief, particularly for consumers, and the containment of rising inflation, without placing an additional burden on public budgets," the ministers said in a letter dated April 4.

Saudi Aramco is by far the biggest beneficiary, and it is estimated that it could make a war profit of $25,5 billion in 2026 if the price of oil remains at an average of $100.

Three Russian companies - Gazprom, Rosneft and Lukoil - could make about $23,9 billion in Iran-related war profits by the end of the year. The conflict has boosted Vladimir Putin's war chest for his war in Ukraine, with Russia earning $840 million a day in oil export revenues in March, up 50 percent from February, according to an analysis by the Center for Energy and Clean Air Research.

ExxonMobil could make $11 billion in profit in 2026 if the $100 price holds. Shell would gain an additional $6,8 billion. The value of both companies, as well as others, has increased significantly due to the rise in share prices in the month after the Iran war began: ExxonMobil is worth $118 billion more, and Shell is worth $34 billion more.

Chevron is on track to make an extra $9,2 billion profit from the Iran war, according to an analysis, The Guardian reports.

The profits of oil and gas companies from the Iran war only add to what has been an extremely lucrative business for petrostates and shareholders for decades. The oil and gas sector has generated an average of $1 trillion in net profits per year over the past half century, and significantly more in crisis years like 2022, when Russia launched a full-scale invasion of Ukraine. The fossil fuel sector also benefits from direct subsidies, which amounted to $1,3 trillion in 2022, according to the International Monetary Fund.

"Moments of global crisis continue to translate into huge profits for oil giants, while ordinary people pay the price. Until governments end their dependence on fossil fuels, the purchasing power of all of us will be hostage to the whims of the powerful," Patrick Gayle, head of investigative reporting at Global Witness, told the Guardian.

The impact of the war in Iran is likely to be long-lasting, with International Energy Agency Director Fatih Birol describing it on Monday as the biggest shock ever to the global energy market.

The soaring prices of oil and gas prompted UN climate chief Simon Steele to warn in mid-March: "Fossil fuel dependency is eroding national security and sovereignty, replacing them with subservience and rising costs." He said renewable energy sources could protect citizens and countries from price spikes: "Sunlight does not depend on narrow and vulnerable sea lanes."