Exxon and Chevron Post USD 26.6 Billion Combined Quarterly Profit as Democrats Push 300,000-Barrel Tax Threshold

ExxonMobil and Chevron together reported USD 26.6 billion in quarterly profit, with Exxon's attributable net income up 105% year on year to USD 14,525 million and Chevron's up 385% to USD 12,072 million. Democratic lawmakers in the United States Congress have proposed an additional tax on companies producing or importing at least 300,000 barrels of oil per day, with the proceeds redistributed to consumers.

Exxon's quarterly revenue rose 42.3% to USD 116,017 million. The company said the profit doubling was supported in particular by record diesel output. Chevron's quarterly revenue climbed 56.3% to USD 70,055 million.

Chevron's refining division earned six times what it made in the same period a year earlier, even though the company processed less crude and sold lower volumes of petroleum products. The global refining market remains undersupplied, and reduced exports from Russia and China are widening the product deficit.

Darren Woods, chairman and chief executive of ExxonMobil, warned that new taxes could push the company to cut investment, recalling that Exxon previously abandoned projects in Europe after windfall profit levies were introduced.

"The second quarter was marked by interruptions but stood out for execution," Woods said. Excluding the Middle East interruptions, Exxon's production and exploration activity reached its highest level in more than two decades.

Chevron recorded record output in the United States and lifted global production by 20%. "Faced with geopolitical uncertainty and market volatility, the Chevron team remains focused on safely delivering the reliable energy the world needs," said Mike Wirth, chairman and chief executive officer of Chevron.

The half-year figures compound the quarter. Exxon booked attributable net income of USD 18,708 million for the first half, up 26.4%, on revenue of USD 201,155 million, an 18% increase. Chevron's first-half profit totalled USD 14,282 million, 138% above the prior-year period, with revenue through June of USD 118,662 million, up 27%.

The price backdrop is the war. The Middle East conflict between Iran and the United States has entered its sixth month and has severely disrupted oil and gas shipments through the Strait of Hormuz. Before the war, roughly one fifth of global oil and gas deliveries transited that route. Brent crude, the international benchmark, rose from about USD 70 per barrel to more than USD 100, touching USD 126 per barrel in March, April and May.

The earnings surge is not confined to the two US majors. Europe's six largest oil companies posted combined first-quarter profits of USD 22 billion, more than 40% above the same period a year earlier.

The physical shortage has reached retail and public services. Australia temporarily introduced fuel rationing measures, and in Nepal and Sri Lanka some public institutions curtailed operations because of petroleum product shortages.

That contrast, between refining margins six times higher on less crude processed and rationing in importing countries, is the ground on which the congressional tax proposal now sits. The 300,000-barrel-per-day threshold would capture producers and importers at scale, and the revenue would flow back to consumers rather than to the general budget.