Oil Firms Reap Billions as Iran Conflict Drives Crude Prices Sky High
Oil companies such as Chevron, Shell, and Exxon are reporting record-breaking profits due to the ongoing conflict in Iran. The war has limited oil production, leading to higher prices for crude oil on global markets.
According to Camila Domonoske of NPR, these three major oil companies made $404 million in profit every day on average during the last quarter. Shell reported its second-highest quarterly earnings ever, while Exxon doubled its profits compared to this time last year.
Despite operations being damaged or paused due to the war, the high price of crude has more than compensated for these losses. European leaders have called for windfall taxes on oil companies, but they are opposed by major oil firms such as Exxon.
Chevron's CEO noted that oil from the Middle East is too essential to global trade to remain off the market forever, but companies do not want to invest in new wells until the situation stabilizes. Most of the profits are going towards debt repayment rather than new projects or increased shareholder dividends.