Exxon Mobil Corp. Chevron Corp. and Shell, the three largest Western oil companies, banked a record $46 billion in collective profits in the second quarter, fueled by the highest energy prices in over a decade.
Exxon, the largest U.S. oil company,
said its second-quarter profit rose to $17.9 billion, its highest ever and nearly four times as much as the same period a year ago, citing rising oil and fuel production, higher energy prices and cost cuts.
Chevron also posted a record profit circa $12. billion, (up from $3.1 billion) in the same period last year.
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Oil industry report record profits, as energy prices soars!
Exxon Mobil Corp. Chevron Corp. and Shell, the three largest oil companies, banked a record $46 billion in collective profits in the second quarter, fueled by the highest energy prices in over a decade! pic.twitter.com/fb8xOouMAZ
— The_Journalbiz (@the_journalbiz) August 1, 2022
Oil giants post $46 billion in combined profit in latest quarter, as they cashed in on rebounding energy demand
The historic profits come as companies reap the benefits of record fuel-making margins following the shutdown of 3 million barrels a day of global refining capacity since the onset of the pandemic in 2020.
“Demand recovers, and we don’t have the capacity to meet that, which has led to record, record refining margins,” Mr. Woods said. “This will be a few-year price environment.”
Shell reported its second consecutive record quarterly profit, hitting $16.7 billion in profit on a net current-cost-of-supplies basis, a figure similar to net income that U.S. oil companies report.
The companies’ banner profits mark a significant turnaround for an industry that almost bankrupted following the worldwide outbreak of Covid-19 in 2020.
Chevron continues to see strong demand for oil and fuel, albeit softened somewhat due to high prices.
Exxon’s oil and gas production was up about 4% from the same period last year.
Oil and gas demand has roared back as countries have lifted pandemic quarantine measures.
Western sanctions against Russian energy have pushed commodity prices even higher. Now, as the U.S. economy is contracting, the oil industry’s lofty earnings have become a rare bright spot for investors.