Exxon Mobil and Chevron, two of the largest U.S. oil companies, reported hefty profits in the third quarter on Friday.
Exxon broke records this quarter by earning $19.66 billion, up 6 percent from the second quarter which broke records in its own right, Reuters reports. Chevron also showed better-than-average profits of $11.2 billion, which while slightly down from the second quarter, is nearly double from this time last year, reports The New York Times.
Much of the increased profits are due to the high demand and low supply of energy due to Russia's war on Ukraine and the resulting energy crisis. Combined with the heavy sanctions the west placed on Russia, profits boomed, Reuters continues. However, the companies' future is uncertain given the weakening global economy and worldwide conflict, the Times writes.
Exxon said its high profits came from "strong volume performance, including record refining volumes, rigorous cost control, and higher natural gas realizations." Exxon also increased profits by pinning its hopes on future fossil fuel use by spending $5.7 billion on new oil and gas projects over the past quarter, according to The Guardian.
Oil companies have been facing demand from the Biden administration to increase production, however, they tend to be slow to comply opting to take the windfall profits, which come from an event or occurrence outside the company's control, CNN explains.
"The investments we've made, even through the pandemic, enabled us to increase production to address the needs of consumers," said Darren Woods, Exxon's chief executive.