Editorial of the “World”. The pressure is mounting on the energy groups. Faced with soaring oil, gas and electricity prices, caused by the post-Covid global recovery and amplified by geopolitical tensions linked to the Russian invasion of Ukraine, the main companies in the sector are called upon to contribute to the collective effort to overcome the crisis. Western sanctions and the uncertainties created by the conflict have pushed energy prices to levels that are unsustainable for consumers. The sector, whose profits largely depend on the evolution of world prices, will not be able to stay away from the mobilization of Western societies for long to defend their values, their sovereignty, while accelerating the ecological transition.
Most states have already implemented measures to reduce consumer bills. But these measures are very heavy on the budgetary level. In France, the overall cost of “energy shields”, “inflation checks” and other rebates at service stations already amounts to nearly 30 billion euros. And the counters keep ticking. Who can predict the end of tensions with Russia? Without forgetting that we are entering an era in which energy prices will be permanently high. The diversification of our supplies to circumvent the Russian offer and especially the energy transition will inevitably increase the costs. The State will not be able to play the shock absorbers eternally.
The idea of taxing oil companies is gaining ground. In France, demagogy has often pushed certain political leaders to make it a national sport, depending on the price of the barrel. However, the current episode is not of the same nature. In recent days, the International Energy Agency, the European Commission and the Organization for Economic Co-operation and Development (OECD) have encouraged the idea of an exceptional levy on the profits of large energy groups.
This initiative, on the part of institutions that have nothing to do with Marxist pharmacies, shows that a change of era is underway. It is a matter of defending European interests against Russia, while seizing the opportunity to reduce our dependence on fossil fuels. There is an obvious paradox that those who produce them are the main winners in the streak.
Share efforts
All actors are not to be put on the same footing. Some, such as electricity or gas suppliers, are subject to market fluctuations themselves. On the other hand, oil companies are the beneficiaries of an exceptionally buoyant context without their having much to do with it. Putting them to work would not be indecent. In 2021, Total generated more than 13.5 billion euros in profits. Taking a fraction of it would contribute to sharing the efforts with consumers and taxpayers, without its economic model suffering. There is no reason for such companies to be at the height of their prosperity when the situation calls for sacrifices from the less well-off and from many companies who see their production costs explode.
A little before the start of the Russian offensive, the CEO of Total, Patrick Pouyanné, had announced an envelope of a few million euros to help his most precarious customers in the face of rising prices. The initiative is no longer up to the challenge. Beyond a short-term contribution aimed at lowering fuel prices, it is urgent to allocate part of the oil revenue to accelerating the energy transition.