Chevron Refining Margins Soar Amid Record Oil Production

Chevron's quarterly results show that high oil prices are just one side of its success. The company is also earning well from refining margins, which have risen sharply over the year.

In the US, data from the Energy Information Administration showed that oil production remains at a record level of 13.8 million barrels per day. However, refined product inventories have fallen by 1.5 million barrels to their lowest level in more than a month.

Chevron's revenue rose 50% to $67.2 billion in the quarter, with the company earning $12.1 billion or $6.11 per share. This is the highest quarterly profit in six years, with upstream oil production profits tripling and downstream net income increasing nearly sevenfold.

Zefiro Methane is another company to watch in the industry. It's plugging abandoned oil and gas wells that are leaking methane, a climate-damaging gas. The Canadian company is generating CO₂ credits from this work, which can be sold at a profit to large corporations like Chevron.