Exxon and Chevron’s $26.5 Billion Quarter Draws Trump’s Ire
ExxonMobil and Chevron made a combined $26.5 billion in the second quarter after producing more oil, refining more fuel, and selling all of it into a market scrambled by war. Washington is investigating why gasoline costs so much. Chevron reported record net income of $12.2 billion, nearly five times its year-ago profit. Exxon earned $14.5 billion, double what it made during the same quarter last…
ExxonMobil and Chevron reported a combined $26.5 billion in profits for the second quarter, driven by increased oil production, refined fuel sales, and a market impacted by ongoing war. The U.S. energy sector is under scrutiny from Washington as they investigate reasons behind soaring gasoline prices. Chevron achieved a record net income of $12.2 billion, nearly five times its profit from the previous year.
Exxon earned $14.5 billion, double its profit from the same quarter last year and its highest result since oil prices surged following Russia's invasion of Ukraine. The Iran war significantly raised crude prices, largely due to a decrease in Gulf production, a collapse in tanker traffic through the Strait of Hormuz, and refinery outages in the Middle East, which were compounded by lost Russian capacity and China's reluctance to export more fuel.
Chevron's refining profit soared to $4.9 billion from $737 million a year earlier, while Exxon's refining business earned $5.5 billion, having lost $1.3 billion in the first quarter. The main issue now, according to Exxon CFO Neil Hansen, is the dwindling availability of refined products rather than the price of crude oil. Chevron's global production reached 4 million barrels of oil equivalent per day, thanks to its acquisition of Hess, while U.S. output hit a record 2 million barrels per day.
Exxon produced 4.5 million barrels per day, with the Permian Basin reaching a record high. Refineries were operating near their capacity limits. President Donald Trump still aims for gasoline to be priced at $2.25 per gallon, but the current national average is $4.11. Comparisons to the pandemic era, when gasoline averaged $2.25, are challenging due to the drastic drop in oil demand at that time.
Trump has directed a Justice Department investigation into allegations of price gouging, and an export ban is no longer completely dismissed. Chevron cautioned that restricting exports could deter investment and ultimately result in reduced supply.
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