economy
We can tell you who will really get rich from this oil crisis – and how we can stop them
Soaring oil costs signal the great transfer of wealth away from households, but also a new opportunity to redistribute it
TL;DR
- Current geopolitical events are driving oil prices above $100 per barrel, mirroring the 2022 crisis.
- In 2022, oil and gas companies globally had a net income of $916 billion, with US companies capturing $281 billion.
- Analysis of 2022 profits shows that the wealthiest 1% of individuals in the US accrued 50% of fossil fuel profit claims, while the bottom 50% received only 1%.
- Disproportionate impact of rising energy costs falls on lower-income households, while the wealthy are insulated by windfall profits.
- The article advocates for a permanent excess profit tax on oil and gas companies to fund household protection measures and the low-carbon energy transition.
- Temporary excess profit taxes were implemented in the UK and EU in 2022 but expired; the US debated but declined the measure.
- The recurring cycle of oil shocks presents an opportunity for governments to intervene, prevent profiteering, and protect ordinary people.