Big Oil, Big Profits

Nobody is happier about the global decline in oil production—and consequent rise in prices at the gas pump—than the Exxon Mobil Corporation.  But it’s close.  Exxon posted a profit of $4.68 in the third quarter, the highest in its 152 year history.  The company’s net income of $19.7 billion in the third quarter was higher than its all-time high—which was achieved in the second quarter.  The company’s profits are currently running at around $7 million an hour.

But Exxon executives were only a bit happier than their counterparts at Shell Oil, which announced profits of $9.5 billion for the quarter.  Chevron is not complaining; its $11.2 billion in third-quarter profits represent its second-highest quarter ever. 

Of course, these high profits have become a political issue, centered around what consumers are paying to fill their gas tanks.  But Exxon and Shell executives have noted that they have little control over the global price of crude oil, and their retail gas stations in the U.S. are owned by independent operators, who set their own prices.  Oil refineries in the U.S. are currently operating at maximum capacity, and Europe in particular is bidding up prices, hoping to avoid a shortage this winter.

Sources:

‍https://www.advisorperspectives.com/articles/2022/10/29/exxon-profit-surpasses-expectations-on-natural-gas-export-surge

‍https://thehill.com/policy/3709759-oil-companies-rake-in-huge-profits-amid-consumer-squeeze/

‍https://thehill.com/policy/3709759-oil-companies-rake-in-huge-profits-amid-consumer-squeeze/