Major Oil Firms Report $36 Billion in Quarterly Profits

ExxonMobil, Shell, and Chevron reported combined earnings of more than $36 billion for the current quarter. Investors heard the figures on earnings calls this week. The results mark a sharp increase for the industry as global supply chains tighten.

ExxonMobil led the group with $15.4 billion in profit. That amount is more than double what the company earned during the same period last year. Shell reported $10.8 billion in earnings, nearly doubling its previous total. Chevron saw its profits rise by 180 percent to reach $9.9 billion.

The spike in revenue follows the war in Iran, which has disrupted oil movement through the Middle East. Brent crude now trades at approximately $113 per barrel. Before the conflict began, the price sat near $70. Demand for gasoline, diesel, and heating oil has remained steady, making the remaining global supply more valuable.

Dan Pickering, founder of Pickering Energy Partners, explained that companies in the United States, Latin America, and Europe are selling their barrels at higher prices. He noted that the Middle East's production loss generally becomes a gain for those regional firms. Executives on the calls stated that a large portion of these profits is returning to shareholders through dividends and stock buybacks. Shell executed one of its largest buybacks in history, while Exxon announced its highest quarterly dividend to date.

Despite the cash flow, most companies are holding back on major new spending. Pickering said the firms are taking a wait-and-see approach because current high prices are driven by geopolitical events rather than long-term demand shifts. He advised that companies are saving cash to prepare for the market cycle as they move into 2027.

The high oil prices have increased costs for American drivers. According to AAA, gasoline costs about $1.20 more per gallon than it did a year ago. Diesel reached a record high in September and remains near that peak. Exxon CEO Darren Woods acknowledged the impact on consumers and economic growth. He said his teams are maximizing production to help keep prices down. Chevron CEO Mike Wirth added that the company is helping consumers get the most from its systems.

Shell CEO Wael Sawan said he did not expect oil prices to be as high as they are now. He noted that global inventories are being drawn down quickly. It will take a long time to refill those reserves. Democrats in Congress have introduced bills for a windfall tax to return excess profits to Americans. Senator Sheldon Whitehouse of Rhode Island sponsored a bill in the Senate this spring. Economist Isabella Weber of the University of Massachusetts Amherst described the record profits as a contradiction given the energy supply crisis.