SPRINGFIELD, Mass. (WWLP) – As the consumer continues to pay these high gas prices there are some companies profiting from the surge. 22News looked into how ‘Big Oil’ is riding the wave of higher energy prices.
Massachusetts surpassed $5 a gallon on average this week. It’s putting a huge dent in consumers’ wallets, but not others.
There are some companies profiting from these record-high prices, and that’s ‘Big Oil.’
Over the past couple of weeks, Big Oil companies have reported a surge in profits for the first three months of the year.
ExxonMobil, the country’s largest oil company, reported its net profit more than doubled to nearly $5.5 billion from a year earlier.
Chevron reported its highest quarterly profit in nearly a decade, while Shell posted its highest earnings ever.
Gas prices are primarily determined by global crude oil prices, which hit nearly $120 a barrel. In the Meantime consumers are left paying the price, as Massachusetts’ average price for gas hit $5 a gallon earlier this week.
Abraham Adolphus of Springfield said, “People went from putting $40 in their car to almost $80. It’s insane at this point. It’s like you’re working and basically your whole paycheck goes to gas.”
While ‘Big Oil’ companies were suffering in the early days of the pandemic, because demand was low, they are now making up for it in a big way. As summer travel season ramps up it’s expected that gas prices will keep reaching record highs through Labor Day weekend.
As we know, it’s not just gas prices rising; home heating bills and electricity prices have also inflated worldwide as natural gas prices climb.