Major Oil Companies Reap Massive Profits as US and Iran Fighting Drives Energy Prices Higher
Oil prices and refining margins surged as shipping through the Strait of Hormuz was disrupted, lifting profits for Exxon Mobil and Chevron and fueling tax proposals.
- On Friday, American oil giants Exxon Mobil and Chevron announce second-quarter earnings amid conflict that halted shipping through the Strait of Hormuz, driving global crude prices above $100 per barrel.
- Operating at near-full capacity, American refineries are capitalizing on historically high profit margins while international competitors struggle with damaged infrastructure and constrained crude supplies from Asia.
- Regular gasoline reached $4.10 per gallon this week. University of Tennessee professor Timothy Fitzgerald said, "If you're a company that owns a bunch of refinery capacity, things look pretty good."
- Sen. Sheldon Whitehouse and Rep. Ro Khanna introduced legislation imposing a 50% excise tax on companies producing over 300,000 barrels daily to redistribute profits to consumers.
- Patrick Galey, fossil fuels lead at Global Witness, said oil producers experience a "very good crisis" while millions worldwide suffer electricity rationing and food shortages; six European oil companies posted $22 billion in profits.
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3 Takeaways from a Blowout Quarter for Oil Companies
It’s 2022 all over again. A war has broken out involving (at least) one large oil-producing country, raising both prices and oil company profits.Chevron reported Friday a quarterly profit of $12.1 billion, its highest quarterly profit ever. ExxonMobil also announced a blowout quarter on Friday. Its $14.5 billion profit was its highest since the Russian invasion of Ukraine in 2022 (when it posted an almost $20 billion profit in the third quarter)…
ExxonMobil and Chevron saw their net profit double and quadruple in the 2nd quarter. But the effect is not so clear in Canada.
While the price of crude oil is triggered by the blockade of the strategic Strait of Ormuz, companies multiply their revenues, but not all companies benefit in the same way.
ExxonMobil and Chevron raked in over $26.6 billion in combined profits from soaring oil prices and refining margins following the war in the Middle East, but warned that gasoline prices in the U.S. may remain high, impacting the cost of living for citizens.
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Exxon, Chevron Earn $26.5 Billion as Iran War and Refinery Shortages Drive Energy Profits Higher
ExxonMobil and Chevron posted a combined $26.5 billion in second-quarter profit as Middle East supply disruptions, constrained refining capacity and elevated fuel prices reshaped global ... The post Exxon, Chevron Earn $26.5 Billion as Iran War and Refinery Shortages Drive Energy Profits Higher first appeared on [your]NEWS.
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