Major oil companies posted record profits in the third quarter as ongoing conflicts in the Middle East and Eastern Europe disrupted global fuel supplies and pushed prices to historic highs. ExxonMobil Holdings Corp., Chevron Corp., BP Plc, Shell Plc, and TotalEnergies SE collectively reported adjusted net income totaling approximately $56.3 billion, significantly exceeding market expectations.
The surge in refining profits came amid heightened tensions following U.S. and Israeli military actions against Iran in late February, as well as continued Ukrainian strikes affecting Russian fuel infrastructure. These events knocked nearly 10% of global fuel refining capacity offline, creating supply bottlenecks that benefited operational refineries.
ExxonMobil’s refining operations generated a record $9.05 billion in profit during the quarter, nearly five times the amount recorded a year earlier. Chevron’s refining earnings reached $4.93 billion, marking their highest-ever quarterly performance and quadrupling year-ago results. BP reported that more than half of its $8.46 billion in adjusted net income stemmed from its refining and trading units, with Shell and TotalEnergies also releasing strong earnings reports.
The spike in fuel prices—international oil prices have climbed by nearly 60% since the military actions against Iran—has contributed to increased consumer costs, fueling political tensions in the United States. Fuel price inflation has made energy costs a critical issue ahead of the upcoming midterm elections, turning some traditionally Republican strongholds such as Texas, Kansas, and Alaska into competitive battlegrounds.
Despite widespread public concern over gasoline and diesel prices, which remain higher on average during the current U.S. administration compared to the previous one, former President Donald Trump has downplayed worries, suggesting prices will decline soon. Trump also acknowledged the financial gains of U.S. oil firms, reversing earlier critiques of their profits.
ExxonMobil reported adjusted earnings of $4.23 per share for the quarter, slightly above analyst estimates, and declared a dividend increase for the 44th consecutive year alongside commitments to maintain $20 billion in annual share buybacks. The company attributed its strong refining performance to investments that expanded Gulf Coast distillate production by 40% since 2019, capitalizing on rivals’ divestments or conversions of fuel facilities to biofuel.
Chevron similarly posted its fourth-highest quarterly profit with net income of $5.28 per share, surpassing expectations by 35 cents. The company maintained $2.5 billion in share buybacks for the quarter and focused on channeling profits toward debt reduction rather than expanding repurchase programs, according to Chief Financial Officer Eimear Bonner. Chevron’s recent acquisition of Hess Corp. bolstered its production capacity, particularly with a 30% stake in Guyana’s Stabroek Block, operated by ExxonMobil.
Chevron also reported increased output from Venezuela, aiming for 300,000 barrels per day by year-end—up 20% from the prior year—with production costs under $20 per barrel, making it one of the most profitable regions for the company. Bonner emphasized confidence in growth prospects in Venezuela.
Looking ahead, industry officials caution that ongoing geopolitical instability and depleted strategic reserves could sustain or increase price volatility. While fuel supplies have somewhat stabilized, the energy market’s infrastructure remains vulnerable to further disruptions, suggesting the potential for continued high profits among refiners.