$26.5 Billion Windfall Sparks Political Scrutiny for ExxonMobil and Chevron
Oil giants ExxonMobil and Chevron reported combined profits of $26.5 billion for the quarter ending last month, sparking political scrutiny from lawmakers.
The windfalls, which amount to a staggering $425 billion annual windfall if crude prices average $90 per barrel, have been fueled by the ongoing conflict in Iran and the resulting surge in oil prices.
Chevron's CEO Mike Wirth attributed his company's record profits to 'disciplined investment and strong execution,' while ExxonMobil's Darren Woods said the quarter was 'shaped by disruption, but defined by execution.'
Oil companies are reluctant to reinvest their profits in expanded drilling, fearing an abrupt end to the conflict could push prices down significantly before they can recoup costs.