We explain why big oil will have big profits in 2023. Oil profits may decline slightly from their record highs of 2022 but will still massive. This includes the 2023 oil price forecasts and explains the 2023 oil and gas sector profit expectations.
One of the most forgotten features of the oil and gas sector is refining and crack spread which is the difference between the raw crude oil input and the gasoline or diesel output from a refinery. Because no one wants to invest billions to build new refinery capacity that will take decades to turn a profit, existing refineries are making billions of dollars in profits today. This is one of the unanticipated problems caused by the transition to green energy sources.