FACT BRIEF

Did the COVID-19 pandemic reduce profits in the fossil fuel industry?

Thursday, March 24, 2022

By Lisa Freedland

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YES

In 2020, U.S. fossil fuel consumption reached its lowest level in 30 years, brought on by pandemic restrictions to travel and commerce and warmer weather that decreased demand for heating fuels. As a result, many fossil fuel companies experienced reduced profits: Exxon Mobil, Chevron, and BP saw losses of $22.4 billion, $5.5 billion, and $5.7 billion, respectively.

In 2021, as pandemic restrictions were lifted and the economy reopened, fossil fuel demand rebounded, causing steady increases in gas prices. This netted many oil companies the highest profits they've seen in years: Exxon, Chevron, and BP reported respective profits of $23 billion, $15.6 billion, and $12.85 billion.

Twenty five of the top oil companies announced a combined $205 billion in profits in 2021, according to watchdog group Accountable.US.

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Sources

US Energy Information Administration U.S. fossil fuel consumption fell by 9% in 2020, the lowest level in nearly 30 years

PolitiFact Yes, oil companies are reporting record breaking profits. But it follows pandemic-fueled losses

Yahoo Finance Recent Exxon Mobil financial results

Yahoo Finance Recent Chevron financial results

Yahoo Finance Recent BP financial results

Accountable.US REPORT: Oil Giants Post Eye-Popping $205 Billion Record Profits

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Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.