Oil companies reach record profits amid Russia's war on Ukraine


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.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
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.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Devika Rao has worked as a staff writer at The Week since 2022, covering science, the environment, climate and business. She previously worked as a policy associate for a nonprofit organization advocating for environmental action from a business perspective.
-
What to know before turning to AI for financial advice
the explainer It can help you crunch the numbers — but it might also pocket your data
-
Book reviews: 'The Headache: The Science of a Most Confounding Affliction—and a Search for Relief' and 'Tonight in Jungleland: The Making of Born to Run'
Feature The search for a headache cure and revisiting Springsteen's 'Born to Run' album on its 50th anniversary
-
Keith McNally' 6 favorite books that have ambitious characters
Feature The London-born restaurateur recommends works by Leo Tolstoy, John le Carré, and more
-
New York court tosses Trump's $500M fraud fine
Speed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
A potential railway megamerger raises monopoly questions
The Explainer Union Pacific and Norfolk Southern would create the country's largest railway operator
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits