Oil Majors Post $14.5 Billion Profits as War Windfall Fuels Payouts Over Drilling
Updated
Updated · Grist · Aug 11
Oil Majors Post $14.5 Billion Profits as War Windfall Fuels Payouts Over Drilling
3 articles · Updated · Grist · Aug 11
Summary
$14.5 billion at Exxon, $12 billion at Chevron and $9.8 billion at Shell capped a spring quarter in which oil majors booked record or near-record profits without materially expanding drilling.
The windfall came after the Middle East war and an effective Strait of Hormuz blockade squeezed supply, raised transport and refining costs, and pushed up crude and gasoline prices.
Executives said they largely stuck to existing production plans, reflecting a years-long shift toward “capital discipline” in which companies favor lower spending and bigger shareholder returns over rapid output growth.
That stance has undercut Trump administration efforts to “unleash” U.S. energy, with only modest rig growth and a lukewarm industry response to new federal lands and Venezuelan opportunities.
Analysts say the strategy could keep fuel prices higher for longer, support EVs and renewables, and eventually cede market share to state-owned producers if private majors lag demand.