WATCH: Biden issues statement on oil company profits amid high gas prices at the pump

President Joe Biden makes a statement Monday on oil company profits in the face of high gasoline prices at the pump.

The event is scheduled to begin at 4:30 p.m. ET. Look in the player above.

Oil companies have once again made eye-popping profits as people around the world grapple with high gas and energy prices.

READ MORE: OPEC+ cuts production sharply to drive up prices; gasoline prices could rise

Exxon Mobil broke third-quarter earnings records, raking in $19.66 billion in net profit. The Irving, Texas-based company said Friday it posted quarterly revenue of $112.07 billion, more than double the revenue it earned during the same period last year.

Chevron made $11.23 billion in profit, nearly hitting the record profits it achieved last quarter, and the San Ramon, Calif., company generated $66.64 billion in revenue.

The high cost of energy has affected consumers in multiple ways. Americans, especially low-income workers, have struggled with painfully high gas prices in recent months, paying more than $4.80 on average for a gallon of regular fuel in early July, according to AAA. High energy prices have also hit manufacturers and retailers, who pass these costs on to customers in the form of high prices for food, clothing and other goods.

Gasoline declined somewhat towards the end of the quarter, but customers were still paying more than $3.79 per gallon for regular gasoline, on average, at the end of September.

Exxon increased its production of gasoline and oil during the quarter to meet growing demand. It had its best-ever refinery output in North America and its highest globally since 2008, the company said. And it produced 3.7 million barrels of oil or oil equivalent per day, and saw record production in the Permian Basin, the most productive oilfield in the United States.

Investments made by Exxon, even during the pandemic, have allowed the company to ramp up production to meet customer needs, CEO Darren Woods said on a conference call with investors.

“Where others have retreated in the face of uncertainty and a historic downturn, retreating and retreating, this company is moving forward, continuing to invest and build to help meet the demand we see today. today and position the company for long-term success in each of our businesses,” Woods said.

Natural gas prices were also strong, especially as demand for liquefied natural gas remained strong globally. The United States is increasingly exporting liquefied natural gas to Asia and Europe, especially as Russian natural gas supplies have dwindled following Russia’s invasion of Ukraine and prices skyrocketed. Woods cited inventory issues as one of the reasons U.S. natural gas prices rose 15% in the quarter.

Oil prices were initially high during the quarter, but gradually declined. A barrel of benchmark U.S. crude was selling for over $100 at the start of the quarter in July, but was selling closer to $80 by the end of September. Even so, diesel prices remain high, according to AAA, which affects delivery costs and raises the prices of all kinds of consumer goods.

To help meet growing demand, Exxon is expanding its oil refinery in Beaumont, Texas, and expects the additional refined product to be available in early 2023.

Exxon’s refining business was the best performer in the quarter, Peter McNally, global sector head at Third Bridge, said in a note to investors. “While some of the political rhetoric cooled in the quarter, investment in the company’s fuel manufacturing segment grew along with earnings,” McNally said.

US oil companies aren’t the only ones profiting from high energy prices. European energy giants Shell and TotalEnergies reported huge profits on Thursday. It fueled calls to tax the profits of energy producers who benefited from high oil and natural gas prices after Russia invaded Ukraine, even as Europe heads into winter during an energy crisis.

Shares of Exxon Mobil added about 2% in midday trading, while Chevron added less than 1%.


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