When talking about oil, the term black gold quickly comes to mind. The comparison has never been more accurate than it is now. Two US industry giants report gargantuan quarterly earnings.
US oil giants Exxon Mobile and Chevron report unprecedented earnings for the spring. The reason for this is the sharp increase in the price of natural gas and oil. Exxon Mobile earned nearly $18 billion in the second quarter. This corresponds to almost a fourfold increase over the year and is the highest profit for the period in the company’s history. In addition to the high prices, the group referred to tight spending controls.
When the group reported its highest profit in seven years for the first quarter, US President Joe Biden criticized the oil companies for capitalizing on the global supply shortage and making high profits. Exxon makes “more money than God,” Biden said at the time.
Competitor Chevron ultimately lost $11.6 billion between March and the end of June. A year ago it was around 3.1 billion. Revenue grew more than 80 percent to $68.8 billion. Chevron increased production and also benefited from significantly higher prices. The group sold a barrel of crude oil and liquefied gas for an average of $89. A year earlier it was only $54.
With regard to the criticism of the high profits, Chevron boss Mike Wirth pointed out that the group had doubled its investments compared to the previous year. “Chevron is increasing energy supply to help meet global market challenges.”
Oil and natural gas prices reached multi-year highs this year after Western sanctions against the important oil exporter Russia put further pressure on the already strained world market. Fuel manufacturing margins skyrocketed around the world, boosting the profits of oil giants like Shell, TotalEnergies and Chevron.
