Sheh Chin-Fang Column: Oil Industry Profits and Climate Disasters

From Europe and the Americas to Asia, as communities suffer from wildfires, heatwaves, droughts, and floods, the world’s five major oil giants have reported record-high profits in the second quarter. Former U.S. President Donald Trump, rarely acknowledging corporate excess, stated, 'These oil companies are making too much money!' While Trump has often spread misinformation, this time he spoke the truth—could it be an attempt to claim credit from the oil industry?

Extreme climate events have ravaged the globe this year. Successive heatwaves have brought temperatures above 40°C to many European cities. South Korea and Japan in Asia also recorded temperatures exceeding 40°C—even hotter than Taipei. Due to heatwaves and drought, South Korean farmers discovered potatoes being cooked underground.

On July 29, 2026, Paris faced a heatwave, with a pharmacy's thermometer showing 42°C. (AP)

Influenced by global warming and the El Niño phenomenon, the typically cool UK experienced severe heatwaves. July’s average temperature reached a 260-year high. On August 13, London recorded a rare 38°C. The UK Met Office warned that such extreme weather is becoming the 'new normal.' Heat and drought have drastically reduced crop yields, prevented pasture growth, and may drive up prices for animal feed and human food. More critically, as other European nations face similar climate disasters, the UK may no longer rely on food imports if conditions don’t improve—potentially leading to a food crisis.

While people worldwide suffer climate disasters, the five major oil companies—Exxon Mobil, Chevron, Shell, BP, and TotalEnergies—earned a combined $48 billion in Q2, a historical high. Chevron’s profits were over four times higher than the same period last year; Exxon Mobil’s were more than double. Meanwhile, U.S. gasoline prices have risen 40% since the end of February, before the U.S. military strike on Iran. American consumers are struggling with high fuel costs, while oil companies reap enormous windfall profits—all thanks to Trump’s policies.

With strong support from the fossil fuel industry, Trump’s second term embraced traditional fossil fuels, encouraging aggressive extraction. In his inauguration speech, he declared, 'Baby, drill, baby, drill!' He eliminated subsidies for renewable energy and electric vehicles, promoted coal and oil extraction, and expanded production to halve gasoline prices and reduce inflation. But he miscalculated entirely.

The U.S. military action against Iran in late February has not led to peace, and international oil prices remain 20% higher than pre-conflict levels. The clear winners are the oil giants; ordinary people are the losers.

Portugal moves to impose windfall tax on oil companies

While Trump merely voiced dissatisfaction without taking action, Portugal swiftly passed a policy in late July to impose a 33% windfall tax on oil companies. The revenue will subsidize household and business fuel costs and support sustainable economic investments to reduce fossil fuel dependence. The bill still requires parliamentary approval.

Trump, backed by fossil fuel interests, has long claimed climate change is a 'hoax'—unsurprising, perhaps. But while Trump denies climate change, its impacts on people worldwide are real. His push for coal, oil, and gas extraction has drastically increased greenhouse gas emissions, accelerating global warming and making climate disasters more frequent. Heatwaves and droughts are killing plants and animals, increasing deaths among the elderly and children, and food shortages could further fuel inflation.

Geopolitical factors—such as the Iran and Ukraine wars—have also driven up oil prices. Combined with Trump’s failed promise to lower energy bills by half, his pre-election pledge now sounds like fantasy.

The one who called climate change a 'hoax' is the greatest fraud

Trump’s embrace of fossil fuels has increased emissions, intensified extreme weather, and turned climate disasters into an ongoing reality. Americans suffer, but so do people worldwide. Trump’s policies are fundamentally flawed. Those once deceived by him are now paying the price. They must wake up.

According to a New York Times poll, Trump’s approval rating has dropped to a record low since taking office—just 38%. Disapproval has reached nearly 60%, a historic high. The poll shows most people reject Trump’s policies. Before the election, he told voters: 'Don’t believe the experts—believe me!' Many voted for change, only to suffer the consequences. Now, many realize: the one who called climate change a hoax is the greatest fraud of all!

*The author is a senior media professional.