I’m sipping my coffee and reading about Big Oil’s latest profits, and folks, I almost spilled my coffee reading this one. ExxonMobil and Chevron, the two biggest US oil companies, just reported some crazy profits – we’re talking $14.5 billion for Exxon and $12.1 billion for Chevron. That’s a whole lot of cash, if you ask me. The reason for this windfall? The spike in global oil prices caused by the US-Iran war. I mean, it’s not like they’re complaining or anything, but you can’t blame them for making hay while the sun shines.
The numbers are pretty staggering – Exxon made about $160 million per day last quarter, and Chevron’s downstream business, which includes its refineries, swung from a loss of $817 million a year ago to a profit of $4.9 billion. That’s what I call a turnaround. And it’s not just these two companies – Shell also reported a profit of nearly $10 billion last quarter, more than doubling its year-earlier profit.
According to Andy Lipow, president of Lipow Oil Associates, “These companies are printing money because oil prices spiked around the world.” And it’s not just the oil prices – the damage done to refineries in the Middle East and Russia has also contributed to the profits. I mean, who wouldn’t want to be in the oil business right now? It’s like they’re printing money, as Lipow said. The world has lost about 6 million to 7 million barrels of refining capacity per day, making existing refineries even more profitable.
Exxon and Chevron have refineries that are doing fantastic, with record refining margins for gasoline, jet fuel, and diesel. It’s a good time to be in the oil business, that’s for sure. But, as we all know, oil is a notoriously boom-to-bust industry. When prices are low, small oil drillers often go bankrupt and even industry leaders lose money. Just look at what happened in 2020 when oil prices briefly went negative – ExxonMobil lost $22.4 billion.
The CEOs of these companies are, of course, thrilled with the results. Exxon CEO Darren Woods said that the company’s performance reflected the strength of the portfolio and operating model they have built over many years. And Chevron is responding to high oil prices by ramping up supply, with record US production and a 20% jump in worldwide production.
But, as you can imagine, these profits aren’t going to sit well with consumers who are hurting from the same high prices the oil industry is benefiting from. The Iran war has cost consumers more than $76 billion in the form of higher gasoline and diesel prices, according to Brown University’s Climate Solutions Lab. And even President Donald Trump, a friend of the oil industry, has complained that oil companies are not dropping gas prices as fast as oil was falling.
In conclusion, it’s clear that Big Oil is making bank right now, and they’re not apologizing for it. And why should they? They’re just taking advantage of the situation. But, as consumers, we’re the ones feeling the pinch. So, the next time you’re filling up your tank and grumbling about the price, just remember – someone, somewhere, is making a lot of money off of it. And that someone is probably an oil executive, sipping champagne and laughing all the way to the bank. 🚀
Armchair patriot. Believes in the free market, cold beer, and that there’s always a guy named George behind every CNN segment.
Former remote-throwing champion turned #1 couch commentator on liberal panic in the media. Born in Texas (or so his mug says), he earned a degree in Fake Newsology & Beer Philosophy from YouTube University.
