Are oil companies making too much money?

[mystery-ak]

Are oil companies making too much money?

Thanks partly to factors beyond their control -- e.g., the Iran war -- oil companies are raking in the dough.

Noel S. Williams | August 5, 2026

Thanks partly to factors beyond their control -- e.g., the Iran war -- oil companies are raking in the dough. Chevron and Shell, for example, just reported record and near-record quarterly profits, respectively. When some idiot reporter (looking to spark controversy and add to his C.V., no doubt) asked President Trump about this at a White House event, he expressed concern, saying they’re making “too much money,” and that, “I don’t like it.”

Actually, a free-market capitalist may indeed like it! While I admit it gives the Dem commies another talking point as gas prices remain elevated, one must be careful about imposing artificial constraints on the (mostly) free market -- there is no evidence that the major oil companies are currently gouging. In fact, market forces are determining the price of gas, diesel, and related products. These forces are time-asymmetric, meaning it takes time for reduced oil prices to translate into lower prices at the pump.

What is the alternative to allowing our companies to thrive in a boom cycle -- a windfall tax? That’s what Democrats are proposing, so common sense immediately requires suspending disbelief. Indeed, when the Euro-peons inflicted a windfall tax, it actually penalized businesses. The CEO of ExxonMobil, for example, stated that “We canceled investments that we had planned for Europe based on the last time they passed a windfall profits tax.”

A windfall oil tax was imposed on oil companies in the U.S. in 1980 -- it wasn’t successful, either.

This is not the time to penalize energy production. Instead, the Dems should reconsider their exorbitant clean energy taxes. The average price of gas and diesel in Democratic mismanaged jurisdictions is artificially high. If anyone is engaging in gouging, it is the discredited Greenies.

more
https://www.americanthinker.com/blog/2026/08/are-oil-companies-making-too-much-money/

[catfish1957]

I've already vented on another thread.  Trump is 100% FOS on this matter....

https://fullratio.com/profit-margin-by-industry



Integrated Oil?- 7.3%

Out of 125 ID'ed industry, (and this is on an up-cycle), Integrated oil ranked 43rd.  Also, consider the environmental and safety risks?  I'd say a gallon of gas is a pretty decent bargain, considering what it takes to take it from, crude out the ground, to a gallon of gas, all the way to a milk bottle.

Hell with Trump.

[DefiantMassRINO]

1.) There is no such thing as "too much money".

2.) The oil companies are not "making money", they are earning it from taking risk and benefitting from bad Government policies that constrain supply.

The oil companies want to drill; the Government won't let them.

The oil companies want to build pipelines to efficiently bring product to market; the Government won't let them.

The oil companies want to expand refinery capacity in the United States; the Government won't let them.

Oil companies did not start a Middle East war that has caused a supply shock; the Government did that.

The fault lay not in the Exxon and Chevron shareholders; it lay at the feet of (wrong) Government (policy).

Man, that Keystone XL pipeline is looking good now.  Canada will export that oil to Asia instead.  Another opportunity blown by Government.

Suck on those sour grapes, Obama, Biden, and Elizabeth Warren.

[IsailedawayfromFR]

1.) There is no such thing as "too much money".

2.) The oil companies are not "making money", they are earning it from taking risk and benefitting from bad Government policies that constrain supply.

The oil companies want to drill; the Government won't let them.

The oil companies want to build pipelines to efficiently bring product to market; the Government won't let them.

The oil companies want to expand refinery capacity in the United States; the Government won't let them.

Oil companies did not start a Middle East war that has caused a supply shock; the Government did that.

The fault lay not in the Exxon and Chevron shareholders; it lay at the feet of (wrong) Government (policy).

Man, that Keystone XL pipeline is looking good now.  Canada will export that oil to Asia instead.  Another opportunity blown by Government.

Suck on those sour grapes, Obama, Biden, and Elizabeth Warren.

I agree with you.

The US Oil industry has shrunk exponentially since i began working in it 53 years ago.

It is a risky business and primarily depends upon commodity pricing on its profitability.
Industry has been able to (here's the current buzzword being used everywhere) sustain itself even after most international assets (and some domestic) were confiscated and the abilities to seek our oil-rich provinces were severely diminished.

Industry did this by consolidation of companies, huge technological advances such as deep water drilling/production, horizontal drilling, multi-stage fraccing and extremely expensive LNG handling which added natural gas as a viable commodity in addition to oil.

All these project take years to get profits, sometime decades.

The fruits of their labors are not imminently known. 

I worked international and domestic exploration projects which typically proved commercial in only one out of ten drilling ventures that were made. 

In fact, government in this country was by and large embarking on a journey to do away with this key industry and forced upon it ridiculous requirements such as environmental that competing industries such as wind, solar and ethanol did not have to be subject to.

I lost my own job after 27 years due to the downsizing done after commodity lows.  No one came to my rescue when prices were down and profits shrunk.

Oil and Gas are critical to this country's wellbeing.  It is suicidal to start pounding on them.

[catfish1957]

I agree with you.

The US Oil industry has shrunk exponentially since i began working in it 53 years ago.

It is a risky business and primarily depends upon commodity pricing on its profitability.
Industry has been able to (here's the current buzzword being used everywhere) sustain itself even after most international assets (and some domestic) were confiscated and the abilities to seek our oil-rich provinces were severely diminished.

Industry did this by consolidation of companies, huge technological advances such as deep water drilling/production, horizontal drilling, multi-stage fraccing and extremely expensive LNG handling which added natural gas as a viable commodity in addition to oil.

All these project take years to get profits, sometime decades.

The fruits of their labors are not imminently known. 

I worked international and domestic exploration projects which typically proved commercial in only one out of ten drilling ventures that were made. 

In fact, government in this country was by and large embarking on a journey to do away with this key industry and forced upon it ridiculous requirements such as environmental that competing industries such as wind, solar and ethanol did not have to be subject to.

I lost my own job after 27 years due to the downsizing done after commodity lows.  No one came to my rescue when prices were down and profits shrunk.

Oil and Gas are critical to this country's wellbeing.  It is suicidal to start pounding on them.

You are taking this pretty rationally.  I am freakin' ticked. Piss on Trump

[Weird Tolkienish Figure]

I predicted Trump would "go schwartzeneggar" in his second term like Arnold did as the governator.