American oil and gas giants raked in massive spring profits while fighting between Iran and the U.S. impeded petroleum shipments and consumers around the world paid more for fuel and confronted shortages.
The conflict, now in its sixth month, halted most shipping through the Strait of Hormuz, a narrow waterway that previously served as a delivery route for a fifth of the world’s oil and natural gas. With global supplies constrained, prices for Brent crude, the international standard, soared from about $70 to above $100 a barrel for much of March, April and May, and at one point reached $126.
The money that oil companies accrued between the beginning of April and the end of June could receive extra scrutiny this year. Gasoline, diesel and jet fuel prices climbed during that period, increasing costs for drivers and airline passengers. Supplies ran low in some countries, leading to sporadic fuel rationing in Australia and government office closures in Nepal and Sri Lanka.
The attacks between the U.S. and Iran resulted in huge profits for some of the biggest publicly traded oil companies as they sold their goods for higher prices. Exxon Mobil on Friday reported doubling its second-quarter profits to $14.53 billion, up 105% from the same time a year ago. The oil giant, based in Spring, Texas, brought in $116.02 billion in revenue, up 42% from the same time last year.
Chevron, based in Houston, nearly quadrupled its profits to $12.07 billion, up 385% from the same quarter last year, and reported $70.06 billion in revenue, up 56% from the same time last year.
“There are constituencies around the world who are having a very good crisis, and the oil producers are one of them,” said Patrick Galey, fossil fuels lead at Global Witness.
