economy
Trump says oil supermajors are making too much money. What will they do with it?
The windfall is fueling fresh political and environmental backlash, with Trump accusing Exxon Mobil and Chevron of making “too much money.”
TL;DR
- Five oil supermajors (Exxon Mobil, Chevron, BP, Shell, TotalEnergies) reported a combined profit of $48 billion in Q2.
- This profit was fueled by high fossil fuel prices, exacerbated by geopolitical tensions.
- The companies generated nearly $90 billion in cash, an all-time high, leading to political and environmental backlash.
- U.S. President Trump criticized oil majors for making excessive profits.
- Instead of increasing investment or shareholder payouts, companies are primarily using the profits to stockpile cash and pay down debt.
- Analysts suggest oil companies view price spikes, often due to global crises, as essential for financial stability.
- Executives are focusing on controllable areas like operational performance and refining to meet consumer demand.
- Investment in new oil and gas fields is being approached with caution due to market uncertainty and pressure.
- Campaigners are advocating for higher taxes on energy majors to fund climate-resilient infrastructure.
- Portugal has approved a windfall tax on extraordinary profits for 2026.
- The American Petroleum Institute argues that windfall taxes discourage necessary long-term investment in energy supply and infrastructure.