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Chevron, Exxon join the list of energy companies reporting huge profits

Exxon Mobil and Chevron -- two of the biggest producers in North America -- joined the growing list of energy companies on Friday by reporting hefty profits for the third quarter of the year. Photo by Jim Ruymen/UPI
Exxon Mobil and Chevron -- two of the biggest producers in North America -- joined the growing list of energy companies on Friday by reporting hefty profits for the third quarter of the year. Photo by Jim Ruymen/UPI | License Photo

Oct. 28 (UPI) -- U.S. oil companies Chevron and Exxon Mobil on Friday joined the crowded field of energy companies reaping hefty quarterly profits, profits that are a concern for the White House.

Chevron turned in $11.2 billion in net profits during the third quarter, lower sequentially but nearly double the returns from third quarter 2021. Exxon Mobil reported its fourth straight quarter of strong returns, with its $19.7 billion in profits topping the second quarter by nearly $2 billion.

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Exxon said its total production for the quarter marked an increase of 50,000 oil-equivalent barrels per day from year-ago levels, its North American refinery input was the best ever and it made major advancements on environmental issues by way of agreements related to carbon capture and storage.

All told, this meant the company returned some $15 billion to shareholders in the form of dividends this year, much to the consternation of President Joe Biden.

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Some of Chevron's performance issues, meanwhile, could be welcome news for an administration fretting over the supply-side challenges gripping much of the energy sector.

The company reported that production from the Permian basin, the most lucrative shale reservoir in the country, was up 12% from year-ago levels.

"We're increasing investments and growing energy supplies, with our Permian production reaching another quarterly record," Chevron's Chairman and CEO Mike Wirth said.

Total net global production for Chevron was down 3% from year-ago levels, but U.S. production increased by 4% with the help of Permian and offshore output.

Returns from companies that provide support services to the likes of Chevron and Exxon reported positive activity as well, suggesting further momentum for U.S. producers. Olivier Le Peuch, the head of oilfield services company Schlumberger said this week that "energy industry fundamentals continue to be very constructive."

The U.S. Energy Department expects total domestic crude oil production will average 12.4 million barrels per day next year, which would beat the record set in 2019 if the forecast proves accurate.

Hefty profits for energy companies, meanwhile, are not isolated to U.S.-based companies. From London, Shell this week reported profits of around $9.5 billion for the three-month period ending in September. That's nearly double the profit from the same time last year.

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