Both El Nino and climate change are believed to play a role in the increasing heat and record breaking temperatures in the world. Due to El Nino, heatwave, drought and changes in weather are seen in many areas. At the same time, increasing carbon emissions from fossil fuels are making these effects more serious, due to which the climate crisis is continuously increasing. Many countries from India to Europe and America are facing scorching heat. Meanwhile, a report by Oxfam has raised a big question. Oxfam claims that pollution emanating from big oil companies is one of the major reasons for increasing extreme heat and heatwaves in the world.
A recently released Oxfam report claims that big oil and gas companies, whose business produces huge amounts of carbon emissions, are earning billions of dollars in profits even during this climate crisis. That is, on one hand the world is facing the brunt of heat and weather, while on the other hand the earnings of fossil fuel companies are continuously increasing. Oxfam has demanded that a special tax be imposed on the excess profits of these big oil companies and that money be used to help the people affected by climate change.
What is Oxfam’s demand?
Oxfam says that heat, drought, floods and storms are having the biggest impact on poor countries and vulnerable groups, who have less resources to avoid these disasters. In such a situation, there is a need to take more responsibility from the companies which have contributed in increasing carbon emissions. However, oil companies have often said that along with meeting the energy needs, they are also investing in clean energy. But environmental organizations argue that change at the current pace is not enough.
Oxfam report raised big questions (Getty Image)
- Emissions from oil and gas companies increase climate crisis: Carbon released from the products of big fossil fuel companies has long been one of the main reasons for increasing the earth’s temperature.
- Heatwaves are becoming more dangerous: Record heat is being recorded in many parts of the world. Rising temperature is directly affecting health, agriculture and economy.
- Oil companies are earning huge profits: Due to the increase in oil prices in the last few years, many big energy companies have earned record level profits.
Profits of oil companies are increasing rapidly
According to an Oxfam report, the world’s six largest oil and gas companies—BP, Chevron, Eni, ExxonMobil, Shell and TotalEnergies—could together earn a profit of about $45 billion in the second quarter (April-June) of 2026. This is almost double the $23 billion of the previous quarter. According to the report, their total profit can reach $147 billion (Rs 12.8 lakh crore) in 2026. At the same time, Chevron is expected to earn $ 1,200 per second and ExxonMobil is expected to earn $ 1,800 per second, which shows the record earnings of these companies.
Why are questions being raised on big oil companies?
The term Big Oil is used for the world’s largest oil and gas companies. These include companies like Saudi Aramco, ExxonMobil, Shell plc, BP and Chevron Corporation. The business of these companies is related to the energy needs of the entire world. The demand for petrol, diesel, gas and other fuels remains constant. For this reason, when oil prices rise, the earnings of these companies increase significantly.
For example, after the surge in oil prices in 2022, many big oil companies recorded record profits. Environmental organizations say that when the world is facing climate crisis, then these companies should invest a part of their extra profits in the solution.
Heat increased, yet preparations to increase oil production
Despite the climate crisis, Oxfam says that these six companies are planning to further expand their business. According to the report, by 2030 these companies want to increase oil and gas production by 14 percent compared to 2024. This means that about 25 lakh additional barrels of oil will be produced every day. Environmental experts believe that if this happens, global efforts to reduce carbon emissions could face a major setback.
The world is continuously getting warmer
Data from the World Meteorological Organization (WMO) and the European Climate Agency Copernicus show that global temperatures have been continuously setting new records in recent years. 2024 was considered the hottest year ever and the world’s average temperature was recorded about 1.5 degrees Celsius higher than the industrial era (1850-1900). Scientists say that if the use of fossil fuels is not reduced rapidly, extreme weather events like heatwaves, droughts and floods may increase in the coming years.
Why is Oxfam asking for a windfall tax?
Windfall Tax means tax imposed on sudden additional profits. When a company makes more profit than under normal circumstances, the government can tax that extra income. That is, if the price of oil suddenly increases and the profits of the companies increase manifold, then the government can take some part of that extra profit as tax. Oxfam says a windfall tax should be imposed on the excess profits of big oil companies.
Earnings of oil companies also increased (Getty Image)
Where will the tax be used?
It is being said that the money received from this tax can be used to help the poor and developing countries most affected by climate change. With this money, plans can be made to prevent disasters like heatwave, flood and drought, better health facilities can be developed for the people and disaster management system can be strengthened.
Oxfam argues that companies that have made huge profits should also contribute to the costs of tackling the climate crisis. It is noteworthy that India had also implemented windfall tax on the additional profits of oil companies in 2022, although the government has been changing its rates from time to time considering the global market conditions.
What will be the impact on India?
India is among those countries of the world where the impact of heat is increasing rapidly. Every year heat wave conditions occur in many states. Its impact especially falls on those who work outdoors, such as labourers, construction sector employees and farmers.
Due to increase in heat, demand for electricity increases, water problem increases and crops can also be affected. In such a situation, large scale investment is needed to deal with climate change. Climate experts believe that the efforts of governments alone will not be enough. Energy companies, industries and common people will have to work together towards reducing emissions.
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