Top 3 oil firms report $36 billion in quarterly profits

Three of the world's largest oil companies reported combined earnings of just over $36 billion for the third quarter, driven by soaring global prices.

ExxonMobil posted $15.4 billion in profit, more than doubling its results from the same period last year. Shell reported earnings of $10.8 billion, nearly doubling its prior year figure, while Chevron saw its earnings rise 180% to reach $9.9 billion.

The spike in profits correlates with a jump in crude oil costs. Brent crude now trades near $113 per barrel, up from approximately $70 before the war in Iran disrupted supply routes. Less oil moving through the Middle East has increased the value of barrels produced in the U.S., Latin America, and Europe.

Executives told investors that a large portion of these gains is being returned to shareholders through dividends and stock buybacks. Exxon announced its highest quarterly dividend in company history, and Shell executed one of its largest buybacks on record. However, industry analyst Dan Pickering noted that the companies are currently holding back on major new drilling projects.

Pickering, founder of Pickering Energy Partners, said the firms are adopting a wait-and-see approach because current prices are driven by geopolitical events rather than long-term demand shifts. "You put the money in the bank and watch to see what happens as we move into 2027," Pickering said. He added that holding cash allows companies to insulate themselves during future price drops.

The supply shock has raised costs for consumers, with AAA data showing gasoline prices up $1.20 per gallon compared to a year ago. Diesel prices hit a record high in September. Exxon CEO Darren Woods acknowledged the impact on consumers but said the company is maximizing production to help mitigate price increases. Shell CEO Wael Sawan noted that global oil reserves are at low levels, which he believes will sustain higher prices for the near term.

Democratic lawmakers in Congress have introduced bills to impose a windfall tax on excess profits, aiming to return money to Americans through tax rebates. Senator Sheldon Whitehouse (D-R.I.) argued that such a tax would also highlight the growing cost-competitiveness of renewable energy. While Exxon CEO Woods previously called windfall taxes a "misguided policy," the Trump administration has taken steps like loosening rules for dyed diesel and lifting some sanctions on Russia to lower fuel prices before the upcoming midterms.