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Please note!
This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.
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FACT BRIEF

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

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.

This fact brief is responsive to conversations such as this one.
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
ABOUT THE CONTRIBUTOR
Gigafact
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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About fact briefs published on Gigafact
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.