As oil and gas companies amp up their withdrawal from Russia, gas prices are soaring.
In response to this increase, companies like Chevron are working to increase oil production in the U.S, according to Chevron’s Chairman and CEO Michael Wirth.
“Chevron is doing its part to grow domestic supply, with U.S. oil and gas production up 10 percent over the first quarter of last year,” Wirth said in a company press release. “Our total of 2022 capital spending, plus announced acquisitions, is expected to be more than 50 percent higher than 2021.”
Even as companies exit from Russia, most first-quarter reports show record increases in earnings. Shell reported a record $9.1 billion in adjusted earnings, and ExxonMobil announced it had earned $8.8 billion, an increase of over $6 billion compared to the first quarter of 2021, after adjusting for a $3.4 billion after-tax charge related to the company’s Russia Sakhalin-1 operation.
“Generating value through strong earnings and cash flow, coupled with maintaining a healthy balance sheet and continuing the disciplined delivery of our strategy, are crucial for Shell to play a leading role in the energy transition,” Shell plc CEO Ben van Beurden said in a company press release.
Last week, Shell announced it had completed the sale of its retail and lubricants businesses in Russia to LUKOIL. The agreement with LUKOIL follows Shell’s announcement in early March of its intention to withdraw from all Russian hydrocarbons in a phased manner, in compliance with applicable laws and regulations.
“Our priority is the well-being of our employees,” Shell’s Downstream Director Huibert Vigeveno said in a press release. “Under this deal, more than 350 people currently employed by Shell Neft will transfer to the new owner of this business.”
After Shell competitor bp exited its 19.75% shareholding in Russian integrated energy company Rosneft, the company reported a loss of $20.4 billion primarily due to the decision to exit Rosneft, according to bp’s first-quarter 2022 report.
“Like so many, I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to everyone affected,” bp CEO Bernard Looney said in an early spring company press release. “It has caused us to fundamentally rethink bp’s position with Rosneft. I am convinced that the decisions we have taken as a board are not only the right thing to do, but are also in the long-term interests of bp. Our immediate priority is caring for our great people in the region and we will do our utmost to support them. We are also looking at how bp can support the wider humanitarian effort.”
