It's a good life to be an oil man #1547911
In a typical consideration of unearned, surprise income (#1588944, #1565551, #1567799 #1594162), the OIL MAJORS have earned a boatload of profits now after/during the Iran war...
"The world’s largest international oil companies are facing a $32bn dilemma over what to do with the huge windfalls from the conflict in the Middle East."
ExxonMobil, Shell, Chevron, TotalEnergies and BP collectively earned more than $75bn in adjusted profits in the first half of the year, up 75 per cent from the $43bn they earned in the same period of 2025, while their free cash flow has nearly doubled.
Here's an interesting comparison:
The performance echoes the windfall the sector enjoyed in 2022, after Russia’s full-scale invasion of Ukraine triggered an energy crisis in Europe and the earnings of the five majors jumped 125 per cent. This time, however, they have so far escaped windfall taxes
Some pay down debt:
BP this week said it would use its windfall to cut its debts and other liabilities by $9bn-$10bn in the third quarter, putting it well ahead of its targets.
...other raise dividends/buy back shares:
TotalEnergies became the first major to outline its current thinking when it pledged last month to raise dividends every year until 2030 and buy back more shares. “There’s room for high returns to shareholders,” chief executive Patrick Pouyanné said at the group’s capital markets day presentation.
Chevron's Mike Wirth says the windfall "belongs to our shareholders" as if not everything a company has/earns does that.
Higher oil price hasn't led to much new exploration
Instead of exploring in new basins, companies have focused in recent years on seeking new oil around their existing platforms and pipelines. Such finds are cheaper and quicker to bring online.
“The idea that you find a big resource, appraise it, develop it and produce something in 2039 is not something stock markets are excited by,” [Russel Hardy, CEO of Vitol] said. “People are trying to bring projects to market much, much quicker.”
The bonanza may also revive dealmaking in an industry that has gone through cycles of consolidation, particularly in the US.
One unexpected destination for new investment could be refining, a sector that has been particularly unloved in Europe and the US, where many majors have significantly sold down their assets.
STRANGE that nobody wants to tax the shit out of them and/or create an American sovereign wealth fund with the proceeds. Oh, Den, don't give Elizabeth Warren any ideas! #1538321
have fun fighting the archivez: https://archive.md/YVpJA
Pivot to AI. It's what all the cool kids are doing.
In America it’s individual states that tax the shit out of oil companies.
I suspect the hope is that the benefits will be greater from letting them spend on new developments, now that they have a friendly federal government to deal with.