It’s a good time to be an oil company.
asserted
It → ’ → ?
The two largest U.S. oil companies, ExxonMobil and Chevron, on Friday reported blowout profits that easily beat expectations as oil prices remain sharply elevated because of the U.S. war with Iran.
asserted
prices → report → Iran
ExxonMobil reported a profit that doubled from the same period last year, while Chevron’s earnings surged more than 180% from a year earlier.
asserted
earnings → report → period
As part of the bumper returns, Exxon said it was increasing the dividend it pays to investors.
asserted
it → say → investors
The returns at both companies came as the price of oil surged beyond $100 per barrel and has remained there for months.
asserted
price → come → months
On Friday, prices accelerated again, with Brent oil trading just under $118 per barrel.
asserted
prices → accelerate → barrel
The highest level that Brent reached since the United States and Israel launched the Iran war in late February was $126, which it is now approaching again.
asserted
it → reach → which
Since the start of the year, Exxon shares have risen 52%, and Chevron shares have returned 50%.
asserted
shares → rise → %
Overnight, another major oil company, BP, reported that its profit skyrocketed to an 18-year high.
asserted
profit → report → high
The average price of regular gasoline has soared 40% for consumers since the war broke out.
asserted
war → soar → consumers
Soaring prices continue to pressure consumers ahead of the midterm elections, where voters have repeatedly said that prices and inflation are primary concerns.
asserted
prices → soar → elections
In 2024, Donald Trump repeatedly pledged to drive energy costs down.
asserted
Trump → pledge → costs
“My plan will cut energy prices in half or more than that within 12 months of taking office,” the then-candidate said in September 2024, while adding that it would mean “gasoline below $2 a gallon.”
asserted
it → cut → 2
In recent rallies on the campaign trail, the president has celebrated the higher oil and gas profits.
asserted
president → celebrate → profits
“I wonder if I should say this,” Trump mused aloud during a rally Oct. 24, before saying “our country is making hundreds of billions of dollars because of what’s happened in the Middle East.”
asserted
what → wonder → East
Trump touts U.S. oil business making ‘hundreds of billions’
asserted
business → tout → billions
“My people said, ‘Please don’t mention that, sir,’ because people are paying a little higher,” Trump continued.
asserted
Trump → say → higher
“But what we’ve done for this country, we’re making money like this country has never made before.”
asserted
country → do → money
“I don’t give a damn: I’m going to say it.
asserted
I → give → it
We’re making a freaking fortune.”
asserted
We → make → fortune
The higher prices are also a result of the war between Ukraine and Russia following President Vladimir Putin’s full-scale invasion of his neighbor in 2022.
“There’s a lot of disruption happening in the world,” ExxonMobil CEO Darren Woods told CNBC on Friday morning.
asserted
Woods → follow → morning
“What you’re finding is because of the closure” in the Strait of Hormuz, “shipping has to find new routes around to continue to deliver the products that society desperately needs.”
asserted
society → find → that
“About half of Russia’s refinery capacity has been taken out from the Ukraine bombing,” he added.
asserted
he → take → bombing
“That shortage of refining capacity and availability to the world is what’s driving product prices as high as it is, and frankly, diesel is the key crunch point here because it is so critical to economic growth,” Woods continued.
asserted
Woods → drive → growth
Since the start of the year, the average nationwide price for diesel fuel has risen 78%.
asserted
price → rise → fuel
New York-traded diesel futures have soared 130% since the start of the year, likely indicating more price rises could still come at the pump.
uncertain
rises → trade → pump
Both Exxon and Chevron said that they were running their refineries at maximum output to continue making as much diesel as possible.
asserted
they → say → diesel
Trump has taken specific note of the impact that diesel could have on the economy.
uncertain
diesel → take → economy
The administration has quickly issued multiple orders and policies in an attempt to bring prices down.
asserted
administration → issue → prices
The president signed an order allowing more widespread use of an off-road dyed variety of diesel, has pressured European allies to release more of the diesel reserves into the global market, and has announced a deal with Putin for some of that country’s diesel supplies.
asserted
president → sign → supplies
Trump’s latest move came last week, when he announced $150 million in Defense Production Act funding to “expand petroleum production, storage, and logistics at refineries across.”
asserted
he → come → refineries
The moves have not meaningfully brought prices down.
asserted
moves → bring → prices
On Friday, Woods said his refineries were already being pushed to the limit.
asserted
refineries → say → limit
“We are at record levels of utilization for our refineries,” he said on CNBC.
asserted
he → say → CNBC
“If you look at North America, we produce record volumes of diesel.
asserted
we → look → diesel
That’s all been a function of trying to drive more product into the marketplace to meet that demand and to drive costs down.”
asserted
That → try → costs
The Aporia
