'Obscene amount of earnings': What is Shell using its record profits for?
The record profits that energy companies made in 2022 have raised questions about what’s driving revenues, and what increased funds are being used for.
And how companies like Shell are using the “obscene amount of earnings” they’ve accumulated is something the public needs to be concerned about, said Jeff Rubin, an economist and former CIBC World Markets Chief Economist.
“In the past, they would have plowed those earnings into capital expenditures, to develop new reserves, bring on new supply, which in turn, would moderate oil prices over the cycle. They’re not doing that anymore,” said Rubin in an interview with CTV’s Your Morning Wednesday.
Instead, Shell is turning itself into an “instant teller machine” through share buybacks and dividend hikes for the benefit of their shareholders, said Rubin.
Shell said on Feb. 2 that its annual profits doubled to $39.9 billion in the final three months of 2022, as natural gas prices climbed after Russia invaded Ukraine. U.K. energy company BP also posted record earnings on Feb. 7, and so did U.S. company Exxon last week.
But as other jurisdictions in places like the U.K. are taxing energy companies on surplus profits, that has not occurred yet in Canada.
For more information about whether Canadians should expect to see high gas prices for the foreseeable future, watch the full interview with Jeff Rubin in the video above.
MORE Business News
opinion | This is how much debt is normal for your age
Have you ever stopped to wonder how much debt is typical for your age?
opinion | What happens if you mistakenly get a larger tax refund?
Was your 2022 tax refund larger than you expected it to be? For many, this likely comes as a pleasant surprise. However, overpayments are likely the result of a mistake on your part or the Canada Revenue Agency. If you don’t amend your returns and the overpayment isn’t returned, you could end up in hot water.
How to claim Ontario's staycation tax credit on your tax return
People in Ontario who vacationed in the province last year can claim the trip on their upcoming tax returns, and here’s how to do it.
Thinking of an alternative lender? What it could mean for your mortgage
As economic conditions make it harder to qualify for a mortgage, Canadians are increasingly looking to alternative lenders, particularly amid interest rates. CTVNews.ca looks at why Canadians are seeking private lenders and the potential benefits and risks attached to them.
opinion | Tips on how to get the most out of your TFSA
The federal government's latest TFSA contribution limit increase took effect this year. On CTVNews.ca, personal finance contributor Christopher Liew outlines eight tips on how Canadians can get the most out of this popular savings account.
opinion | These are the new tax brackets for 2023
There are going to be some changes to Canada's tax brackets as we move into 2023. These changes could impact how you’re taxed when you file your 2023 income tax returns next year.
Canadian food bloggers share tips, tricks to make filling budget-friendly meals
Food bloggers and cookbook authors say meal-planning and simple recipes can help home cooks put together filling and tasty dishes on a budget -- an increasingly stressful challenge amid rising food prices.
Canadians fell for more home improvement scams in 2022, new report finds
The Better Business Bureau says Canadians fell for home improvement scams the most in 2022, in a report highlighting the riskiest scams and how much money they cost Canadians.