Oil company profits boom as Americans reel from high fuel prices

The record profits came after similarly outsized gains in the first quarter when the largest oil companies made close to $100bn in profits.

High energy prices are one of the leading factors driving inflation to a four-decade high in the US. Gas prices have fallen slightly in recent weeks but are now averaging $4.25 a gallon across the US, more than $1 a gallon higher than a year ago.

Consumers are facing high fuel prices not just at the pump. Soaring energy prices are being baked into delivery costs, which is driving up the cost of everything from apples to toilet paper.

One reason gasoline prices have been so high is that fewer refineries are operating in the US than before the pandemic, so there is a limit to how much gasoline can be produced.

Biden has called for the companies to increase production and refining capacities in an attempt to bring down prices. On Friday Exxon said it was expanding refinery and production in Texas and New Mexico.

Exxon, based in Irving, Texas, increased its oil and gas production as crude prices hovered above $100 a barrel. Revenue at Exxon soared to $115.68bn, up from $67.74bn during the same quarter last year.

In addition to oil company executives, shareholders also reaped the benefits of high energy prices during the quarter. Since the start of 2022, Exxon and Chevron shares have risen close to 46% and 26%, respectively.

Associated Press contributed to this story