ExxonMobil and Chevron reported a combined net income of $26.7 billion for the second quarter of 2024, marking significant profit increases fueled by rising crude oil and gasoline prices amid ongoing geopolitical tensions. Chevron posted $12.2 billion in net income, a fivefold increase from the same period last year and a record for the company, while ExxonMobil reported $14.5 billion, doubling its earnings from the previous year and recording its best quarterly profit since Russia’s invasion of Ukraine in 2022.
Both firms have ramped up production to near-record levels and are operating refineries at close to full capacity to meet global demand for petrol, diesel, and other petroleum products. Industry executives attributed part of the price surge to disruptions following the joint US and Israeli military strike on Iran on February 28, which affected oil production and refining operations across the Gulf region and the wider Middle East.
Neil Hansen, ExxonMobil’s chief financial officer, warned that petroleum product prices could rise further if the Strait of Hormuz—a critical maritime route for about 20% of the world’s oil shipments—were to be closed. Hansen also cited additional supply pressures from Ukrainian attacks on Russian refineries and export restrictions imposed by China. He noted that the current strain is less on crude oil availability and more on refined products such as petrol and diesel, driven by limited global refining capacity not seen in recent years, which has led to increasing profit margins on these products.
The profit surge and high pump prices have drawn criticism from former President Donald Trump, who has accused energy companies of “price gouging” and taken steps to investigate the industry. In late June, Trump called on gasoline retailers to reduce prices immediately, suggesting that a gallon of petrol should cost around $2.25—levels last seen during the 2020 pandemic period—while current US average gasoline prices stand at about $4.11 per gallon, according to the American Automobile Association. Analysts have noted that rising fuel prices in the lead-up to the November midterm elections might prompt further scrutiny or regulatory action targeting the oil sector.
Trump’s administration has so far ruled out imposing an export ban on oil or refined petroleum products, although some industry observers estimate there is about a 35% chance such measures could be reconsidered if prices remain elevated. Chevron’s chief financial officer, Eimear Bonner, acknowledged that government interventions like releases from the Strategic Petroleum Reserve have provided some market relief but cautioned that policies which hinder investment or restrict supply growth would be counterproductive.
The ongoing balance between market forces, geopolitical developments, and political pressures continues to shape the outlook for the US oil industry and energy prices globally.