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Wise people say you can get rich the fastest during times of crisis and war, and oil companies prove this still stands. Just as auto companies enjoyed record profits despite selling fewer cars, the oil companies raked in tens of billions of dollars, helped by record gasoline prices.
The hot topic right now is whether America has entered a recession or not, considering that its economy has shrunk for the second quarter in a row. Despite the debate being superfluous, considering how it’s already affecting people’s lives, it’s interesting how the government still refuses to admit to the recession. But, while ordinary people already feel the recession and have to cut spending to make ends meet, big corporations enjoy record profits. And there are no bigger profits than in the oil industry right now, and there were never.
As ExxonMobil and Chevron reported their quarterly profits, it became clear that this was undoubtedly a time of crisis. There would be no other explanation as to why these companies made their biggest profits in history when all others consider laying off people and cutting spending. Looking at ExxonMobil, the oil company recorded a net income of $17.9 billion during the second quarter, according to CNN. This is up a whopping 273% from the same period a year ago and nearly double what it made in the already very profitable first quarter.
I admit big figures might be less relevant to regular folks like you and me. To put things into perspective, we should say that ExxonMobil made $2,246 every second of every day for all the 92 days in the quarter. Considering you spend around two minutes filling up your tank, ExxonMobil earned $270,000 from the moment you stopped at the pump until you paid for the gas. And that’s just one oil company.
Chevron, the other big oil company that released its financial results for the second quarter, was not far behind. Its net income reached $11.6 billion in the second quarter, again up 74% from the first quarter and 247% from a year ago. Not bad. That’s $1,462 per second, $175,000 earned while you filled up your tank. Despite those figures being absolute records for both companies, neither mentioned that in their statement.
This reminds us of a similar situation in the auto industry, which seemed on the brink of collapse because of supply chain issues and component shortages. But despite complaining of economic headwinds, most car companies enjoyed healthy profits. It is true they were making far fewer vehicles, but they are selling them for a much bigger gain. If this is indeed a recession, it certainly isn’t for the big corporations.
As ExxonMobil and Chevron reported their quarterly profits, it became clear that this was undoubtedly a time of crisis. There would be no other explanation as to why these companies made their biggest profits in history when all others consider laying off people and cutting spending. Looking at ExxonMobil, the oil company recorded a net income of $17.9 billion during the second quarter, according to CNN. This is up a whopping 273% from the same period a year ago and nearly double what it made in the already very profitable first quarter.
I admit big figures might be less relevant to regular folks like you and me. To put things into perspective, we should say that ExxonMobil made $2,246 every second of every day for all the 92 days in the quarter. Considering you spend around two minutes filling up your tank, ExxonMobil earned $270,000 from the moment you stopped at the pump until you paid for the gas. And that’s just one oil company.
Chevron, the other big oil company that released its financial results for the second quarter, was not far behind. Its net income reached $11.6 billion in the second quarter, again up 74% from the first quarter and 247% from a year ago. Not bad. That’s $1,462 per second, $175,000 earned while you filled up your tank. Despite those figures being absolute records for both companies, neither mentioned that in their statement.
This reminds us of a similar situation in the auto industry, which seemed on the brink of collapse because of supply chain issues and component shortages. But despite complaining of economic headwinds, most car companies enjoyed healthy profits. It is true they were making far fewer vehicles, but they are selling them for a much bigger gain. If this is indeed a recession, it certainly isn’t for the big corporations.
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