Exxon and Chevron post record profits on higher oil prices

Exxon said Friday that refining earnings — profits that come from processing crude oil into gasoline and other fuels — jumped to $5.3 billion, from a loss of $865 million a year earlier. At Chevron, refining profit was $3.5 billion in the second quarter, up from $839 million a year earlier.

high energy costs It became a major contributor to inflation around the world, and drew sharp criticism for energy producers. In June, Mr. Biden said “Exxon has made more money than God this year,” blaming the company for not investing enough to increase production. Britain, home to BP and Shell, has Declare a special tax On the “extraordinary” profits of oil and gas companies.

“Chevron is increasing energy supply, increasing investment, and we are constructively engaged with Congress and this administration,” said Pierre Breiber, Chevron’s chief financial officer, on a call with investors to discuss the results on Friday.

On Thursday, Shell CEO Ben van Beurden blamed high energy prices on global market conditions and government policies that Discouraging investment in oil and natural gas.

“Our role in the end is to provide the energy the world needs,” he said.

Exxon and Chevron indicated Friday that they are increasing production in the Permian Basin, a shale oil field in Texas and New Mexico. Companies are facing pressure from shareholders not to overspend on expansion, said Faisal Hirsi, energy analyst at Edward Jones.

“After years of overspending, these companies have found debt and are focusing on discipline in capital spending,” said Mr. Hirsi. “They will try to increase production at a rate of 1 to 3 percent, which is an acceptable rate for investors as long as they are able to increase the cash return.”

See also  Stocks are falling with key economic data on the horizon

Leave a Reply

Your email address will not be published. Required fields are marked *