Source: Fortune
Summary
Chevron reported its largest quarterly net profit ever, $12.1 billion, due to the Iran war’s oil and gas supply disruptions. ExxonMobil’s $14.5 billion second-quarter income and Shell’s $10.8 billion in net earnings were also their most profitable quarters since 2022. The oil and gas producers are profiting from higher crude oil prices, record oil-refining margins, and petrochemical gains in North America. Chevron CEO Mike Wirth expects the conflict to have a limited impact on global fossil fuel demand. Exxon CEO Darren Woods is confident the Middle East’s energy sector will fully rebound.
Our Reading
The numbers tell one story. Chevron and Exxon are reaping the rewards of the Iran war’s supply disruptions. The Big Oil giants are profiting from higher crude oil prices and record oil-refining margins. They’re also gaining from petrochemical gains in North America. Chevron is planning to invest more in Iraq, including reopening and expanding the Kirkuk-to-Baniyas pipeline. Exxon is confident the Middle East’s energy sector will fully rebound. The conflict is a boon for Big Oil, but consumers are paying the price.
Author: Evan Null
