Amidst record prices at gas pumps, Exxon Mobil registers historic profits of $56 billion

Breaks 2008 profit record

Although gasoline prices have eased in the last several weeks, the memories of $6/gallon are still fresh memories for many motorists. It was in this market for $6 gasoline that energy behemoth Exxon Mobil made record profits.

Houston-based Exxon Mobil (XOM) reported profits of $56 billion for their fiscal year 2022, which ended December 31. By one calculation, XOM made $6.3 million per hour last year.

The profit exceeded previous records set in 2008 when XOM made $45.2 billion. At that time, crude oil rose to $142 per barrel. Crude oil rose to a high of $116 last May and is trading at about $78 today.

“Overall earnings and cashflow were up pretty significantly year on year,” Exxon Chief Financial Officer Kathryn Mikells told Reuters. “So that came really from a combination of strong markets, strong throughput, strong production, and really good cost control.”

It is in this environment that some elected officials are calling for excess profit taxes. Calif. Gov. Gavin Newsom’s proposal calls for a tax with proceeds being directed back to motorists who experienced the highest gas prices nationally.

“California’s price gouging penalty is simple – either Big Oil reins in the profits and prior they’ll pay a penalty,” Newsom said when announcing his plan. “Big Oil has been lying and gouging Californians to line their own pockets long enough. I look forward to the work ahead with our partners in the Legislature to get this done.”

XOM is trading at $112, which is an all-time high.

Chart compliments of Macrotrends.