Exxon and Chevron post $26.5 billion profit as US fuel prices remain high

Exxon Mobil and Chevron reported combined second-quarter profits of $26.5 billion on Tuesday, 4 August, triggering criticism from political leaders and consumers as US gasoline prices persist at elevated levels. Exxon Mobil posted a net income of $17.9 billion, while Chevron reported $8.6 billion, representing a significant year-on-year increase driven by global energy demand and refined product margins. Political and Public Backlash The record earnings have drawn sharp criticism from former US President Donald Trump and current administration officials, who argue that energy majors are prioritizing shareholder returns over increased production. Critics point to the disconnect between corporate windfalls and the financial pressure on American households, where the national average for gasoline remains above $3.80 per gallon. The surge in profits is largely attributed to the recovery in oil prices and tight refining capacity following geopolitical disruptions in Europe and the Middle East. Capital Allocation and Shareholder Returns Despite the high prices at the pump, both Exxon and Chevron have maintained disciplined capital expenditure programs. Instead of aggressive new drilling, the firms allocated a combined $15 billion toward stock buybacks and dividends during the three-month period ending in June. Executives from both companies stated that these returns are necessary to reward long-term investors after years of underperformance and market volatility during the…