Record Oil Profits, No New Drilling Ahead

Oil companies are raking in record profits due to supply constraints caused by the war in the Middle East. Exxon Mobil, Chevron, and Shell have all announced massive quarterly earnings, with Exxon pulling in $14.5 billion and Chevron landing its highest profit on record at $12 billion.

The resulting supply shortages and higher transportation costs have driven up oil prices, delivering windfall profits for producers. However, these companies are not using their newfound wealth to drill more wells or explore untapped oil fields.

Instead, they're pocketing the cash and paying shareholders, according to experts. This shift towards 'capital discipline' has been a deliberate choice by investors, who have soured on aggressive production growth and now prioritize steadier returns.