Exxon’s profit, excluding special items, was $17.6 billion in the second quarter, nearly double what it made in its highly profitable first quarter, oil prices and gas that began to surge following Russia’s invasion of Ukraine. Second-quarter profit rose 273% from the same period a year ago.
Chevron earned $11.4 billion excluding special items, up 74% from the first quarter and 247% from a year ago.
Including one-time items, both brought in hundreds of millions more: ExxonMobil’s net income reached $17.9 billion, while Chevron brought in $11.6 billion.
ExxonMobil’s net income was $2,245.62 every second of every day in the 92-day long quarter. Based on this, Chevron was earning $1,462.11 per second.
Since it takes about two minutes to pump 20 gallons of gas, that means between them, the two oil giants made over $400,000 between them in the time it took you to fill up your tank.
Reuters reported that this was a record profit for both companies – although neither mentioned it in their statement, as companies usually do when their profits hit record highs.
Oil prices have started falling recently, and gasoline prices are falling with them. AAA puts Friday’s average gas price at $4.26 a gallon. That’s down 76 cents per gallon, or 15%, from the record high of $5.02 per gallon hit on June 14.
But one of the main reasons for the drop is the growing fear among investors trading oil and gasoline futures that the country is heading into recession. And if so, one of the main reasons is that the Federal Reserve is raising interest rates at a historically rapid pace in an effort to keep inflation under control. And high gasoline prices are a major driver of these price increases.
The US economy has shrunk in size in each of the past two quarters, which is a popular shorthand for a recession. Although economists debate whether the economy is already in a recession or if it is coming, many consumers feel that we are already in an economic recession. High gas prices are one of the reasons they feel this way.
Shares of ExxonMobil (XOM) and Chevron (CLC) both rose in premarket trading on better-than-expected earnings. Shares of ExxonMobil are up more than 50% this year through Thursday’s close, while shares of Chevron have gained more than 30%, making it one of the best performers in the industry average in the world. Dow Jones.