Shell’s profits tripled as oil prices surge…
With the current power struggles amid Russia-Ukraine war Petroleum giants Shell is said to have made its highest profit ever in a quarter.
As of same quarter last year, profits made by energy giants Shell has tripled $9.13bn (£7.3bn) to that of first quarter 2022. But also reported a loss of $3.9bn (£3.1bn) amid Russia-Ukraine war
Ukraine’s invasion by Russia has skyrocketed oil and gas prices due to Russia’s power as the largest exporter to the European Union.
The European Union has sanctioned Russia with lots of it and the latest being the cutting off the highest importation of its oil before the end of the year
The prices of oil were already on the rise before the Russia-Ukraine invasion
A statement from Shell chief executive Ben van Beurden amid the Ukraine war highlighting the “significant disruption to global energy markets”.
“The impacts of this uncertainty and the higher cost that comes with it are being felt far and wide.
“We have been engaging with governments, our customers and suppliers to work through the challenging implications and provide support and solutions where we can.”
Shell competitors, including BP and TotalEnergies have also reported a sharp rise in essential profits.
Shell and its competitors were already estimated to make high profits amidst the world crises which eventually saw the European Union cut its dependency on the Russian oil and gas.
Shell promised to invest over £ twenty billion in the UK economy in the next 10 years in low carbon energy and in UK gas and oil supplies.
Ministers will be monitoring strictly to make sure Shell delivers on those commitments.
It’s the promise of investment that is standing between UK oil and gas companies and the windfall tax opposition parties have called for but the government has so far resisted.
Cost of living
Hike in oil prices have increased the cost of living around the world.
In the UK, inflation is overseeing the highest percentage increase in over 30 years, as energy bills, fuel costs and others shoots up.
The Central Bank of England is set to make a statement on interest rates on Thursday, with rumor it will lift borrowing costs to reduce inflation.
One of the leading contributors to UK inflation has been fuel prices, which have seen the highest and could stay that way for months, according to some analysts.