ExxonMobil and Chevron see profits sky-rocket as Americans struggle with record gas prices

Shell also reported record profits of $11.5bn, more than doubling earnings on the same quarter last year

Consumers Inflation

(A customer pumps gas at an Exxon gas station on May 10, 2022, in Miami, Florida)

ExxonMobil and Chevron have reported a massive leap in profits as Americans struggle with record high gas prices at the pump.

Exxon reported second-quarter profits of $17.6 billion - close to double its first quarter. Profits were up 273 per cent on the same period of 2021.

Chevron made $11.4bn - up 74 per cent from the first quarter of 2022, and 247 per cent on the same quarter last year.

Shell also reported record profits of $11.5bn, more than doubling earnings from $5.5bn in April-June 2021. Profits were up from $9.1bn in the first quarter of 2022.

“Earnings and cash flow benefited from increased production, higher realizations, and tight cost control,” said Darren Woods, Exxon’s chairman and chief executive officer, in a statement.

“Strong second-quarter results reflect our focus on the fundamentals and the investments we put in motion several years ago and sustained through the depths of the pandemic.”

Exxon, based in Irving, Texas, increased its oil and gas production as crude prices hovered above $100 a barrel. Revenue at Exxon skyrocketed to $115.68bn, up from $67.74 billion during the same quarter last year.

“Exxon made more money than God this year,” President Joe Biden noted at the White House last month.

Meanwhile, families are facing a cost of living crisis over basic necessities. Gas prices have soared in the US this year, with the average now at $4.26 a gallon. The high energy prices are spilling out across the economy, driving up prices across the board.

Part of the reason why US gas prices are so high is that fewer refineries are operating in the US than before the pandemic so production has been cut.

The war in Ukraine and subsequent sanctions against Russia, a major gas supplier, has also seen prices jump in the fossil (natural) gas and liquefied natural gas (LNG) sector.

Competition over a reduced LNG supply, particularly in Europe which relies heavily on Russian gas, has also driven up the price.

In addition to oil company executives, shareholders reaped benefits of high energy prices during the quarter too. Exxon earned $4.21 per share, exceeding analyst expectations of $4.02 per share, according to analysts polled by Factset. Chevron earned $5.95 per share, exceeding analyst expectations of $5.16 per share.

Shares of both companies jumped another 3 per cent before Wall Street opened on Friday.

AP contributed to this report