Major energy producers reported massive quarterly earnings this week, benefiting from tight global fuel supplies and elevated refining margins even as American households contend with high gasoline and diesel costs ahead of Tuesday’s midterm elections.
ExxonMobil, Chevron and Shell generated more than $36 billion in combined profit for the quarter, according to earnings reports reviewed by NPR and NBC News. ExxonMobil led the group with $15.4 billion in net income, more than doubling its results from the same period last year. For the first time in at least six years, Exxon collected more revenue from its refining units than from exploration and production, Fox Business reported.
Chevron’s profit jumped 180 percent to $9.9 billion, lifted by a downstream division where earnings quadrupled to $4.9 billion, CNBC reported. European peer Shell earned $10.8 billion and carried out one of its largest-ever stock buybacks, while BP saw its profit reach an 18-year high, according to NBC News.
War and outages squeeze supply
The windfall stems primarily from disruptions linked to overseas conflicts. A U.S.-Israeli conflict with Iran that began in late February has severely curtailed oil shipments through the Persian Gulf, while Ukrainian drone strikes have hobbled roughly half of Russia’s refining capacity, ExxonMobil Chief Executive Darren Woods told CNBC.
Brent crude, which hovered near $70 per barrel before the war with Iran, traded between $113 and $118 per barrel this week, NPR and NBC News reported. That price spike, combined with refinery shutdowns in Europe over recent decades, has left markets critically short of refined fuels such as diesel and aviation fuel.
Refining executives said their plants are running near maximum capacity to replenish depleted fuel stocks. Woods told CNBC that North American units are producing record volumes of diesel, while Chevron Chief Executive Mike Wirth told investors the company is focusing on delivering as much fuel as its system can handle.
Pain at the pump enters political fray
High refining margins have kept retail prices steep across the country. Data from AAA showed regular gasoline averaged $4.20 a gallon on Friday, compared to $3.03 a gallon a year ago, Fox Business reported. Diesel reached an all-time record average of $6.52 a gallon in late September, weighing heavily on freight and trucking operators.
The price shock has created sharp political tensions. President Donald Trump rebuked oil companies in August for generating excessive profit from a shortage, CNBC noted. However, at an Oct. 24 campaign rally, Trump highlighted the financial upside for domestic producers, telling the crowd, “we’re making money like this country has never made before,” according to NBC News.
The Trump administration has attempted to temper diesel costs through several initiatives, including a $150 million allocation under the Defense Production Act, temporary waivers for agricultural dyed diesel and an arrangement allowing Russian diesel into global circulation. Energy analysts cited by CNBC and NPR cautioned that these measures are unlikely to deliver meaningful relief before voters head to the polls.
Congressional Democrats continue pushing for a windfall tax on excess oil profits, sponsored by Sen. Sheldon Whitehouse of Rhode Island, to finance consumer tax rebates. Industry leaders, including Woods, have dismissed such proposals as counterproductive to investment.
A prolonged squeeze into 2027
With inventories severely depleted, market observers do not anticipate quick relief. Raphael Portela, director for corporate strategy and analytics at Wood Mackenzie, told CNBC that even if tensions in the Strait of Hormuz de-escalate, physical market tightness will likely extend deep into 2027.
Shell Chief Executive Wael Sawan echoed that assessment on an investor call, noting that rebuilding global crude and product reserves will require significant time, anchoring energy prices at elevated levels for the foreseeable future.
