Shell Rakes in $9.1 Billion in First Quarter. What Does It Mean for the Rising Cost of Living? Shell reported record high earnings of $9.13 billion in the first quarter of 2022, prompting action from lawmakers to impose higher taxes on gas companies to aid those struggling amidst rising prices.

By Madeline Garfinkle

While gas prices soar, Shell reported "obscene" profits of $9.13 billion in the first quarter of 2022 — and they aren't the only ones. BP and Total Energies also raked in record-high revenue despite significant hits taken as oil giants exited operations in Russia following the invasion of Ukraine.

Related: Shell to Stop Buying Russian Oil and Gas

The massive earnings have prompted lawmakers from Britain's Labor Party to intervene, advocating for a windfall tax to mitigate the struggles of a rising cost of living.

"By using a big chunk of the bloated profits that Shell, BP and others are raking in to make homes warmer, more energy efficient and kitted out with heat pumps, the government could start to really tackle the climate and cost of living crises simultaneously," says Philip Evans oil and gas campaigner of Greenpeace UK, in a statement to The Guardian.

Still, despite lawmakers repeatedly calling on Boris Johnson to enforce higher taxes on oil and gas companies, he has rejected the pleas, stating that the move would discourage investors and cause prices to stay high in the long run. Meanwhile, as shares rose 3% Thursday morning, Shell is incentivizing holders.

Related: 3 Oil Stocks That Will Survive Climate Change

The oil giant plans to buy back $8.5 billion shares in the first half of the year and expects shareholder distributions to exceed 30% of cash flow in the second half.

It remains unclear whether the oil earnings will continue to hit record highs as gas prices rise and contribute to inflation, but Shell chief executive Ben van Beurden says the company has been "engaging with governments, customers and suppliers to work through the challenging implications and provide support and solutions where [they] can."

Related: What to Expect From Gas Prices as Oil Hits Highs Unseen in Years

Wavy Line
Madeline Garfinkle

Entrepreneur Staff

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Editor's Pick

She's Been Coding Since Age 7 and Presented Her Life-Saving App to Tim Cook Last Year. Now 17, She's on Track to Solve Even Bigger Problems.
Lock
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Lock
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Lock
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics

Business News

'All Hell Is Going to Break Loose': Barbara Corcoran Issues Warning About Real Estate Market, Interest Rates

The "Shark Tank" star appeared on FOX Business' "The Claman Countdown" this week.

Business Plans

How to Change Careers: A Step-by-Step Guide

Want to make a career change without compromising your finances or future? Check out this step-by-step guide on how to change careers to learn more.

Branding

How I Made Money From My Book Without Selling a Single Copy

Did you know you can make money with a book without selling copies? Here's exactly how I did it.

Career

The Best Paying Jobs in Consumer Services

Are you looking for a job that pays well in consumer services? Check out this comprehensive breakdown to learn all you need to know.

Money & Finance

What Is Annual Income? Here's How to Calculate It.

Want to know how much money your business or personal budget brings in each year? Discover how to calculate annual income in this detailed guide.

Branding

Finding Your Brand Voice — How to Write Copy That Sounds Like You

Here's how to nail your brand voice so you can differentiate yourself and build your business in an authentic way.