The two giant American oil companies, “Exxon Mobil” and “Chevron”, achieved record profits in the second quarter of this year, at a time when the administration of President Joe Biden blames them for not making enough efforts to limit the rise in prices at gas stations.
With the sharp rise in oil prices to more than $ 100 a barrel after the start of Russian operations in Ukraine on February 24, Exxon Mobil achieved profits of $ 17.9 billion, and Chevron achieved $ 11.6 billion in the quarter ending in late June.
Benefiting from high oil prices, not only the two American companies, but European oil companies also achieved huge net profits of $18 billion for Shell, $5.7 billion for Total Energy, and $3.8 billion for Eni. ” Italian.
The price of oil in trading in New York during this period ranges between 95 and 120 dollars per barrel.
After the price of oil had been on the rise for more than a year with the recovery of corporate and consumer demand, this trend accelerated in the spring to reach levels not seen since 2008 in light of the sanctions imposed on Russia.
This rise is considered one of the main factors behind the global inflation that has reached unprecedented levels for decades in the United States and Europe.
The US administration accuses companies in this sector of enriching themselves at the expense of drivers without taking any steps to try to find a solution that would comfort consumers.
However, ExxonMobil and Chevron say they are making an effort.
In terms of production, “ExxonMobil” confirmed that it pumped the equivalent of an additional 130 thousand barrels per day during the second quarter in the Permian Basin, located between Texas and New Mexico, while Chevron increased its production by 3 percent in the country.
ExxonMobil also indicates that its refineries’ refining capacity will increase by about 250 thousand barrels per day in the first quarter of 2023, “which constitutes the largest increase in the capacity of the sector in the United States since 2012,” according to what the company’s Chairman of the Board of Directors Darren Woods announced. In a statement.
generous giveaways
As for refineries, the situation is more mixed. The quantities that were refined in “Exxon Mobil” refineries in the United States recorded a slight increase, while the quantities of oil transferred in “Chevron” refineries decreased by 8 percent due to maintenance work.
Overall, ExxonMobil’s revenue increased by 71 percent to about $115.7 billion, while Chevron’s revenue increased by 8 percent to $69 billion.
The two companies benefited from the sharp rise in the prices of refined products, which boosted their profits significantly, as well as from the increase in crude oil production and from the control of their expenses.
The two companies, which incurred large losses when the Covid-19 epidemic began, do not plan to use their profits to increase their investment spending this year, which remains at levels lower than before the epidemic.
In return, the two companies use this margin to reduce their debt and provide generous dividends to their shareholders.
In this context, “ExxonMobil” distributed to its shareholders a total of $ 7.6 billion during the second quarter, while “Chevron” increased its share buyback program from 10 to 15 billion dollars this year.
The price of “Exxon Mobil” shares increased by more than 3 percent during the first trading on Wall Street, compared to an increase of more than 7 percent for “Chevron” shares.
The big companies prefer to reduce their debt to face any economic consequences in the future. It has been trying for several years to adapt to the growing calls from civil society and a number of stakeholders to redirect activities to lower carbon energies to combat climate change.