The world’s largest oil companies have amassed nearly half a trillion dollars in profits since Russia’s full-scale invasion of Ukraine began in , a period marked by soaring energy prices and widespread economic hardship. Global Witness analysis reveals that BP, Shell, Chevron, ExxonMobil, and TotalEnergies collectively earned approximately $444.4 billion between and , fueled by the disruption to global energy markets.
This staggering figure is close to the total estimated cost of reconstruction and recovery for Ukraine, currently assessed at $524 billion, according to the World Bank. The surge in profits underscores a stark contrast between the financial gains of major oil companies and the economic pain felt by consumers in Europe and the devastating losses endured by Ukrainians.
The analysis highlights a dramatic increase in profitability for the “big five” oil majors. In , their combined profits jumped 125%, rising from $87 billion in to $195 billion. This windfall came as households across Europe grappled with crippling energy bills, and as Ukraine faced relentless attacks, including sustained strikes on its power grid during the harsh winter months.
“The oil supermajors have amassed a fortune since Russia’s war began, raking in almost half a trillion dollars in profit as households across Europe have faced crippling bills and Ukrainians have suffered relentless attacks,” said Patrick Galey, Head of News Investigations at Global Witness. “To make matters worse, oil giants have spent their spoils on huge payouts to wealthy shareholders and more climate-wrecking oil and gas production. It’s now time for a reckoning. Governments must tax dirty fossil fuel firms fairly and squarely – with the proceeds used to help rebuild Ukraine, fund climate action and compensate households plunged into energy poverty.”
The profits haven’t translated into a significant shift towards renewable energy investment. Between and , BP and Shell, both with stated net-zero emissions targets for , spent an average of ten times more on rewarding shareholders than on investing in low-carbon and renewable energy solutions.
Shareholders in the five oil majors have received a combined $444.4 billion in share buybacks and dividend payments since the start of the war. This figure exceeds the European Union’s total spending on clean energy throughout , which amounted to $391 billion. The data suggests that, despite growing pressure to transition to cleaner energy sources, oil and gas companies are prioritizing returns to investors over long-term sustainability.
The trend extends beyond simply maintaining existing fossil fuel operations. Chevron, BP, and Shell are reportedly exploring investment opportunities in Venezuelan oil and gas, following the recent easing of US sanctions on the country’s assets. This move signals a continued commitment to fossil fuel extraction, even as the world faces increasing urgency to address climate change.
Meanwhile, consumers in the United Kingdom continue to feel the impact of high energy prices, which remain £300 higher than pre- levels and are projected to rise further by £85 per year. The UK’s energy secretary, Ed Miliband, recently warned of the dangers of “fossil fuel markets controlled by petrostates and dictators,” calling for greater protection for bill-payers.
The situation highlights the complex interplay between geopolitical events, energy markets, and corporate profits. While the war in Ukraine has undoubtedly created a humanitarian crisis and economic instability, it has also provided a significant financial boost to the world’s largest oil companies, raising questions about the fairness of the energy market and the need for more robust regulation and taxation.
Experts predict that inaction on climate change will result in trillions of dollars in economic losses in the coming years, further emphasizing the need for a transition away from fossil fuels. The current trajectory, however, suggests that oil and gas companies are doubling down on their core business, potentially exacerbating the climate crisis and prolonging the reliance on volatile and politically sensitive energy sources.
