U.S. oil companies reported massive profits in the third quarter of 2026, driven by record crude production and high oil prices. ConocoPhillips, for example, posted a $4 billion profit, benefiting from geopolitical disruptions that have sent global oil markets into turmoil. Andy O’Conor at Morningstar DBRS noted that these companies are capitalizing on elevated prices due to the ongoing conflict in the Middle East, which has disrupted crude oil supplies.
The refining sector has been particularly strong, with multinational oil companies reaping high margins. Stephen Cunningham of Argus Media attributed this to skyrocketing refining margins caused by global disruptions, including attacks on Russian refineries. U.S. crude production hit a record 14 million barrels per day last week, according to the U.S. Energy Information Administration, marking a significant milestone despite concerns about shale production plateauing.
The Permian Basin in West Texas has been a key driver of this growth. Karr Ingham with the Texas Alliance of Energy Producers explained that higher oil prices in 2026 have incentivized companies to increase production by adding rigs and other measures. However, many companies remain cautious about spending in 2027, given the volatility in crude oil prices, which could easily spike or drop depending on geopolitical developments.
Garrett Golding with the Dallas Federal Reserve noted that oil companies are carefully considering their budgets, with scenarios ranging from $100 per barrel to $60 per barrel. Most major companies are not committing to large investments in new oil rigs, reflecting the uncertainty in the market.