As American families continue to be hammered by skyrocketing gasoline prices, U.S. oil and gas companies are poised to reap tens of billions in windfall profits thanks to high wartime prices. New analysis by Global Witness, Greenpeace USA, and Oil Change International finds that high oil prices due to Russia’s invasion of Ukraine will net the U.S. upstream oil and gas industry a windfall of $37 to $126 billion (all totals USD) in 2022 alone.
The analysis comes amidst a flurry of debate on how the government can best address gasoline prices that have surpassed $6 per gallon in some states. Despite misleading talk of “energy independence” from some politicians, the United States can’t drill its way to lower gasoline prices — oil prices are set on an integrated global market. Additionally, fossil fuel companies already hold leases to extract more oil and gas than global carbon budgets allow to meet climate targets. The Big Oil Windfall Profits Tax bill currently being considered by Congress is a better method of easing the financial burden placed on working families.
