Thanks to the Biden administration’s goal of ushering in a revolution of green energy and placing a stranglehold on new drilling for oil and other fossil fuels, U.K. conglomerate British Petroleum (BP) is experiencing record-breaking profit growth.
In the last quarter alone, BP has tripled its profits thanks to the removal of Russian oil from the markets as the conflict in Ukraine wages on. On August 2nd, they announced their underlying replacement cost profit, which excludes one-time items and fluctuations in the value of inventories, jumped to $8.45 billion from $2.80 billion in the same period a year earlier. In response to this record growth, the company is ordering some changes.
Boosting dividends by 10% and announcing the buyback of $3.5 billion in stock, BP is on track to make major changes to the oil and gas industry. Announcing expectations of dividends to continue growing 4% annually through 2025, they are positioning themselves and shareholders to make a record run in profits.
The U.K. is not happy about this, as the nation is experiencing U.S. levels of inflation, reaching a 40-year high of 9.4% in June, and their citizens are suffering greatly. In efforts to put a dent in this inflation, they have announced a 25% windfall profits tax on profits from oil and gas companies that come from British activities. This move is something their opposing Labour Party is criticizing as this tax isn’t helping their people.
Rachel Reeves, the party’s spokeswoman on treasury issues, issued a statement on these changes in taxes. “People are worried sick about energy prices rising again in the autumn, but yet again we see eye-watering profits for oil and gas producers. Labour argued for months for a windfall tax on these companies to help bring bills down, but when the Tories finally U-turned they decided to hand billions of pounds back to producers in tax breaks.” She’s not blowing this out of proportion either.
Thanks to this tax, BP is seeing their taxation from North Sea operations go from 40% to 65%, and as a result, $800 billion will be set aside to cover that bill. Given their average of $105.50 per barrel of oil, and the 70% increase over last year, the company has no problems paying this bill. Operations in the UK might be profitable, but it is their global dominance that is making this turn into a huge profit maker.
Given the U.S. is only a small percentage of their gas sales, BP is making money by selling oil to U.S. companies that are unable to drill enough here. Making profits on both ends, avoiding U.K. taxation, and being able to meet the demands for their energy sources is something they have thrived on. Not being reliant on U.S. drilling but being able to support drilling globally due to the U.S. shortage of drilling operations is only helping to push their profits higher.
President Biden could have easily avoided making yet another foreign company huge profits by not only continuing the oil production gains made under Trump but by adding on to them. Instead, he went the opposite direction and choked things off. Inside the first 24 months in office, this man has done more damage to our economy than eight years of Obama did. He has no desire or drive to change this either.
The liberal agenda and the poisoning of the Republican party’s integrity by Biden and the rest of his leftist crooks is what got us in this position.
Only by sharing the rose-colored ideas of green energy, free healthcare, free college, legal cannabis, and abortions for all was he able to get into office. He failed to tell the American people how bad inflation would skyrocket, how much we would suffer as a nation, and how much it would divide us while paying companies like BP more profits than they could have possibly imagined.