Houston’s oil giants reported massive profits in the third quarter of 2026, driven by high fuel prices due to the ongoing wars in Iran and Ukraine. Chevron’s profits surged nearly 300% compared to the same period in 2025, while Exxon Mobil’s net income doubled to $15.3 billion. Refining companies like Phillips66 and Valero saw unprecedented gains, with Phillips66’s refining income increasing fourteenfold and Valero earning more in the third quarter than in all of 2024 and 2025 combined.
The companies attributed their windfalls to the war in Iran, which has raised prices for diesel, jet fuel, gasoline, and crude oil. Darren Woods, Exxon’s chief executive, acknowledged the impact of high prices on people’s lives but emphasized the company’s focus on efficient production to keep markets supplied.
Unlike previous oil booms, industry analysts note that companies are taking a more disciplined approach this time. Instead of making expensive acquisitions, they are using their profits to pay down debts and reward shareholders. Phillips66 met its 2027 debt reduction goals a year early and is investing in projects like the Western Gateway pipeline. Valero plans to buy and reopen Houston’s oldest refinery for $320 million, reflecting a trend of rebuilding existing assets rather than constructing new ones.
Exxon and Chevron reported profits not seen since the Russian invasion of Ukraine in 2022. Exxon earned $55 billion in 2022 compared to almost $34 billion so far in 2026, while Chevron reported $35 billion in 2022 compared to $27 billion through the third quarter this year. Exxon plans to buy back $20 billion worth of stock in 2027, emphasizing a cautious approach to temporary market disruptions. Both companies are also focusing on expanding their oil and gas resources in regions like Kazakhstan, Iraq, Venezuela, Guyana, Suriname, and Africa.