Fuel: the colossal profits generated by ExxonMobil and Chevron

Europe 1 with AFP 5:02 p.m., October 28, 2022

After European majors' 'superprofits', US oil giants ExxonMobil and Chevron posted even juicier third-quarter profits, $30.9 billion between them, exposing themselves to further criticism from the administration American.

ExxonMobil earned 19.7 billion dollars over the period, a level never reached before, while Chevron granted 11.2 billion in profits, just below its record of the previous quarter.

Under the effect of soaring energy prices in the wake of the war in Ukraine, European groups also did well: Shell posted a net profit of 6.7 billion, TotalEnergies 6, 6 billion and Eni 5.9 billion.

Future tensions with the US government?

This situation contrasts with that of two years ago, when the fall in energy prices at the start of the pandemic led to heavy losses for hydrocarbon groups.

It could however rekindle tensions with the American government, President Joe Biden regularly reproaching the oil majors for the juicy profits they reap without bothering to increase their production to lower prices for consumers.

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With the approach of the midterm elections, while inflation is the main concern of Americans, his administration is trying to lower prices at the pump.

He thus recently announced that the United States would continue to draw on their strategic reserves, once again scratching the profits of players in the sector.

The American groups ensure for their part to participate in the collective effort by increasing the volumes pumped in the United States.

Recent spike in energy prices

ExxonMobil said that its crude production in the Permian Basin, an area straddling Texas and New Mexico, had never been higher and that its refineries were operating at a record rate in North America and at a level more seen since 2008 internationally.

But these groups are also under pressure from investors demanding that they limit their spending and from civil society actors campaigning for a reduction in their production in order to limit CO2 emissions.

Like all oil majors, ExxonMobil and Chevron are taking advantage of the recent spike in energy prices.

The latter is settling a little on the crude side: the barrel of black gold listed in New York, boosted since the beginning of the year by the sanctions imposed on Russia after the invasion of Ukraine, has been exchanged over the period between approximately 80 and 105 dollars, which is less than in the previous quarter.

+52% turnover over one year for ExxonMobil

Natural gas prices, on the other hand, rose in Europe, with ExxonMobil pointing out that they were driven by "concerns over supply" in the region "and efforts to inflate inventories as winter approaches". .

The company's revenue jumped 52% year-on-year to $112.07 billion.

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The group, which spun off some assets and pulled out of its oil field in Russia, pumped slightly less oil and natural gas than in the previous quarter, with production standing at 3.72 million barrels oil equivalent per day over the period.

On the other hand, it sold a record volume of refined products, ie 5.54 million barrels of oil equivalent per day.

ExxonMobil's share already record

At Chevron, sales rose 49% to $66.6 billion.

The group pumped 3.03 million barrels of oil equivalent per day over the period worldwide, slightly less than over the same period last year due to the end of concessions in Thailand and Indonesia.

Sales of refined products for their part increased by 4% in volume, in particular with an increased demand for kerosene for aircraft with the resumption of air traffic.

ExxonMobil's stock, already at a record high, rose just under 2% in electronic trading ahead of the opening of the New York Stock Exchange, as did Chevron.