In 2022, the five biggest oil companies in the West made profits of almost $200 billion, leading to demands for stringent windfall taxes by governments.

TotalEnergies, the French oil giant, posted a full-year profit of $36.2 billion, twice the previous year's figure, due to the higher fuel prices following Russia's attack on Ukraine.

TotalEnergies' impressive increase in annual profits parallels the success of supermajors Exxon Mobil, Chevron, BP, and Shell. This follows Exxon's record-breaking profits of $56 billion in 2022, a peak for the Western oil industry.

The five major oil companies amassed a collective profit of $196.3 billion in the previous year, surpassing many nations' GDP.

Boasting ample funds, the energy companies have utilized their massive profits to benefit investors with increased dividends and stock repurchases.

In his State of the Union address on Tuesday, U.S. President Biden commented on the record profits of $200 billion despite the worldwide energy crisis, describing the situation as "outrageous."

Biden commented that the U.S. oil companies had not spent nearly enough of their profit on increasing domestic production and helping to keep gas prices from rising. Instead, he said these businesses had used their record earnings to buy back stock and provide bonuses to their CEOs and shareholders.

Biden suggested raising the corporate stock buyback tax by a multiple of four to motivate long-term investment, maintaining that the large firms would still make "considerable profits."

Agnes Callamard, the secretary general of Amnesty International, deemed Big Oil's profits "patently unjustifiable" and "an unmitigated disaster."

Callamard said that the billions in profits being made by these oil corporations must be adequately taxed so that governments can address the rising cost of living for the most vulnerable populations and better protect human rights in the face of multiple global crises.

Executives of major oil companies have tried to justify their profits amidst protests from activists, highlighting the need for reliable energy production in the shift to renewables and claiming that additional taxes could hinder investment.

On Thursday, Shell CEO Wael Sawan commented that the issue of taxes is a decision for governments to make, adding that they try to provide the perspective that companies that need to invest heavily into the energy transition require a secure and stable investment environment.

Shell recently reported an annual profit of nearly $40 billion, its highest ever, easily beating its previous record of $28 billion in 2008.

Sawan expressed concern that measures such as windfall taxes and price caps could damage investor confidence and that a more effective solution was necessary to ensure European energy security. He suggested that steps should be taken to attract investment capital.

Amin H. Nasser, the Chief Executive Officer of the biggest energy company in the world, Saudi Aramco, has cautioned against the risks of applying pressure to oil companies through increased taxation.

Asked at the end of last month if a tax on oil profits would be disadvantageous, Saudi Aramco's CEO responded that it would not be beneficial for oil companies to be required to pay out more and instead, they need to be helped to invest in conventional and alternative energy sources and to grow their businesses.

Nasser noted that a massive amount of capital would be needed for the shift to renewable energy, and this investment could be impacted if businesses were taxed more.

Global Witness, an advocacy organization, believes individuals have a right to be angry about the enormous gains made by Big Oil and have called for a windfall tax.

Alice Harrison, fossil fuels campaign leader at Global Witness, said that with the current global recession and many of us knowing people struggling, it is our responsibility to speak out against profiteering.

Harrison proposed that a higher windfall tax could help those in financial difficulty, which, combined with a significant rise in renewable energy and insulation for homes, could end the fossil fuel era, damaging both people and the planet.

Sana Yusuf, a climate campaigner at Friends of the Earth, commented that it is unjust for people to bear the brunt of expensive energy costs while the oil and gas companies make billions. Yusuf proposed that taxing the extra profits of businesses could finance a comprehensive program that would improve insulation, increase the use of renewable energy, reduce energy prices, and cut carbon emissions.

On Tuesday, Bernard Looney, the CEO of BP, expressed his desire to defend the company after they reported a record-breaking 2022 profit of almost $28 billion, asserting that BP is taking an active role in providing the world with energy. BP had previously declared that its emissions would be cut by 35-40% by 2030, and its goal is to reach net-zero emissions by 2050.

BP also announced on Tuesday that they had revised their plan to reduce carbon emissions to 20%-30% by 2030, adding that they still need to finance oil and gas projects to keep up with demand and are investing up to $8 billion in the energy transition this decade.