Revenues of major oil and gas companies have tripled since the outbreak of war between Russia and Ukraine.
The figures are truly hallucinatory, but experts warn states that live off this kind of economy.
How much oil and gas companies have made from the Russia-Ukraine war
On average, the giants that make energy their primary source of income (so much so that it takes up nearly 90 percent of GDP) have revenues of $1.5 trillion.
Since February 2022, almost exactly one year since the outbreak of the Ukraine conflict, oil and gas have skyrocketed allowing companies trading these commodities to reach revenues of $4 trillion.
A number almost impossible to write or even think about. This means that their earnings tripled in the space of a year.
This is why many nations have raised the price of raw materials
As mentioned earlier, if oil and gas prices have had this abnormal surge, the war is to blame.
Prior to the Price Cap, there was no cap on the price of commodities, and therefore, in order to meet the high demand of Western states, oil and gas exporting nations have increased prices out of all proportion, generating extra profits in their coffers.
While the war has been a fault for Western states, it has been a source of profit for Middle Eastern countries. Taking the brunt of the price increase in the end are always the citizens who have had to change their lifestyles.
Read also: One European country is gaining from the gas crisis: the Norway case
Will the demand for oil and gas decrease? Here’s what Fatih Birol thinks
All that glitters is not gold and, in fact, market leaders in the export of commodities such as oil and gas need to be very careful and start diversifying their investments and economies.
In the West, albeit slowly, we are moving toward a green transition that has the ambition of replacing oil and gas with green energy. As a result, therefore, the demand for oil and gas will decrease. In this regard, Fatih Birol, head of the International Energy Agency (IEA), said:
“It is no longer possible to run a nation whose economy is 90 percent dependent on oil and gas revenues.”
The turning point could be the U.N. climate talks, namely Cop28, which is already being worked on.
Middle Eastern countries will also participate in the conference. Special observers will be the United Arab Emirates, which is also a member of the Organization of Petroleum Exporting Countries (OPEC).