Key facts
- Supermajors ExxonMobil and Chevron are expected to report significantly higher profits for the second quarter.
- Elevated oil and gas prices, driven by geopolitical tensions involving Iran, are the primary cause of the profit surge.
- U.S. President Trump has publicly criticized oil companies for price-gouging and initiated a federal investigation.
- European lawmakers, particularly from Green parties, are demanding that fossil fuel companies contribute to climate adaptation measures.
- Exxon's estimated second-quarter net profit is around $19 billion, while Chevron's is projected at $9.7 billion.
Supermajor oil companies are anticipating substantial profits for the second quarter, largely due to a surge in oil and gas prices exacerbated by geopolitical conflicts involving Iran. This financial windfall has drawn criticism from governments worldwide, including the Trump administration and European lawmakers.
Oil prices escalated significantly following U.S. and Israeli strikes on Iran, which led to traffic disruptions in the Strait of Hormuz, pushing Brent crude above $100 per barrel. While prices did not reach 2022 highs, the current economic climate has made these price levels more challenging for governments.
In the United States, gasoline prices exceeded $4 per gallon, prompting President Trump to publicly accuse oil companies of price-gouging and to order a federal investigation. He urged retailers to lower prices immediately, suggesting a target of around $2.50 per gallon.
The energy industry has countered that retail fuel prices are influenced by international crude oil benchmarks but are not directly synchronized. Supply chain disruptions, such as Ukrainian drone attacks on Russian refineries impacting diesel and jet fuel, have also affected gasoline production and prices.
Exxon is estimated to have earned approximately $19 billion in the second quarter, with Chevron projected to report nearly $10 billion, more than triple their first-quarter earnings. Other refiners like Marathon and Valero are also expected to post strong results.
In Europe, Green party members of the European Parliament have called for the five largest fossil fuel companies to fund climate-proofing measures for public buildings and homes, linking industry profits to climate destruction.