U.S. oil giants raked in billions of dollars in profits in the third quarter as oil prices surged amid supply constraints caused by conflicts around the world, contributing to higher prices at the pump for consumers.
ExxonMobil, the largest U.S. oil producer by market capitalization, reported having more revenue from refining operations than from its exploration and drilling operations for the first time in at least six years.
Chevron’s third-quarter downstream earnings also reached their highest point over the same timeframe.
The surge in revenue for the oil giants comes as Americans are facing higher prices at the gasoline pump, as the war in Iran’s disruption of oil flows from the Middle East and the war between Russia and Ukraine has led to the targeting of energy infrastructure.
TRUCKING INDUSTRY HIT BY STRING OF BANKRUPTCY FILINGS AS DIESEL COSTS SURGE
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American consumers have faced a significant uptick in gas prices this year, with gas prices surging above $4 a gallon nationally at times, according to AAA data.
AAA data showed that the national average price of a gallon of regular gas was $4.20 a gallon on Friday, down slightly from $4.43 a month ago but well above the average of $3.03 a gallon a year ago.
Diesel prices also reached their highest recorded average price last month, when it reached $6.52 a gallon on Sept. 22, AAA found.
Diesel costs are particularly significant for the trucking industry, and those costs can affect the price paid by consumers for groceries and other goods that are transported to stores around the country.
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Recent data from the Labor Department also reflects the surge in gas prices that Americans have faced over the past year.
The September consumer price index (CPI) released by the Bureau of Labor Statistics found that gas prices surged 9.1% on a monthly basis, and were up 34.2% from a year ago.
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Gas prices have undergone significant shifts since the Iran war began in late February, with the BLS data showing monthly swings to the upside of 21.2% in March, 5.4% in April and 7% in May.
A cooldown in the conflict over the summer allowed gas prices to decline on a monthly basis by 9.7% in June and 2.9% in July.
However, concerns over the prospect of a resumption of hostilities and the impact on energy supplies caused prices to rise again in the last two months, with prices up 3.9% in August and 9.1% in September, per the BLS data.
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Reuters contributed to this report.
