ExxonMobil posts $15.4 billion quarterly profit as oil prices spike

ExxonMobil reported a quarterly profit of $15.4 billion on Friday, a figure that more than doubled the company's earnings from the same period last year. The result contributes to a total haul of just over $36 billion for three major energy giants in the current quarter. Shell recorded earnings of $10.8 billion, nearly doubling its previous results. Chevron saw its profits jump by 180 percent to reach $9.9 billion.

The surge in revenue aligns with a sharp increase in global oil costs. Brent crude currently trades around $113 per barrel, up from approximately $70 before the war in Iran began. The conflict has disrupted supply routes through the Middle East, making oil from other regions more valuable. Demand for refined products such as gasoline, diesel, and heating oil has remained steady as residents continue to heat homes and transport goods.

The timeline of this price shift began with the outbreak of the Iran war. This event, combined with Ukrainian strikes on Russian refineries, took a large amount of global refining capacity offline. By September, diesel prices hit a record high. According to AAA, gasoline now costs about $1.20 more per gallon than it did a year ago. These increases have pushed fuel costs higher for drivers across the country.

Corporate executives addressed the situation during earnings calls held this week. They noted that high prices are driven by geopolitical events rather than long-term structural changes. Shell CEO Wael Sawan stated that he initially expected the price spike to be temporary. "If you'd asked me six months ago, would I have thought that oil prices were going to be where they are today, no," Sawan said. He added that global inventory levels are being drawn down quickly.

Despite the windfall profits, companies are not expanding capital expenditures aggressively. Dan Pickering, founder of Pickering Energy Partners, explained that firms are adopting a wait-and-see stance. "You put the money in the bank and watch to see what happens as we move into 2027," Pickering said. He noted that oil is a cyclical industry, and companies prefer to hold cash during high-price periods to insulate themselves when prices fall.

Executives indicated that a large portion of these profits will return to shareholders. Shell announced one of its largest stock buybacks to date. Exxon declared its highest quarterly dividend in company history. Exxon CEO Darren Woods acknowledged the impact on consumers, stating that his team worked to maximize production to help manage prices. Chevron CEO Mike Wirth said the company focuses on helping consumers access as much product as possible from its systems.

In Washington, Democrats have introduced bills to impose a windfall tax on excess profits generated by these geopolitical shocks. Senator Sheldon Whitehouse (D-R.I.) argued that renewable energy sources are becoming more cost-competitive while oil profits soar. Economist Isabella Weber of the University of Massachusetts Amherst described the current situation as a contradiction where the worst energy supply crisis in decades is yielding record corporate gains. The Trump administration has recently loosened rules on dyed diesel and lifted some sanctions on Russia to lower fuel prices, though these measures are unlikely to significantly impact U.S. pump prices before the midterm elections on Tuesday.

Global oil reserves remain low. The U.S. Strategic Petroleum Reserve is at reduced levels, and Europe has released portions of its crude and diesel stocks. Sawan warned that it will take considerable time to refill these inventories. The combination of low reserves and ongoing conflict suggests that high energy prices may persist through the winter months.