NewsWPLG Local 10 – Main FeedJuly 31, 2026United States
Oil Companies Report Record Profits Amid Global Energy Price Hikes
Major U.S. oil companies have seen significant profit increases as conflict in the Middle East disrupts global shipping and drives up fuel prices. In response, some members of Congress are proposing a new tax on large oil producers to redistribute revenue to consumers.
Read the full story at WPLG Local 10 – Main FeedWhy It Matters
Rising global oil prices have increased costs for U.S. consumers at the gas pump and for air travel, while federal lawmakers are debating a potential windfall profits tax on large energy companies that could impact corporate tax liabilities starting in 2026.
Key Facts
- Exxon Mobil reported $14.53 billion in second-quarter profits, a 105% increase from the previous year.
- Chevron reported $12.07 billion in second-quarter profits, a 385% increase from the previous year.
- Proposed legislation would impose a 50% excise tax on companies producing or importing at least 300,000 barrels of oil per day.
- The proposed tax would apply to profits starting in 2026 based on the difference between current prices and the previous year's average.
- Brent crude oil prices fluctuated between $70 and $126 per barrel during the spring months.
- The average price of regular gasoline in the U.S. reached $4.11 per gallon as of the report date.
- Six major European oil companies reported a combined $22 billion in first-quarter profits.
- Refineries are experiencing high 'crack spreads,' with potential profits of $50-$60 per barrel compared to a historical average of $20-$25.
- Shipping through the Strait of Hormuz, which accounts for one-fifth of global oil and gas, has been largely halted due to conflict.
Who's Mentioned
personSheldon Whitehouse“U.S. Senator from Rhode Island who introduced legislation for a windfall profits”personTimothy Fitzgerald“Professor of business economics at the University of Tennessee.”organizationExxon Mobil“Reported $14.53 billion in second-quarter profits.”personTom Seng“Assistant professor of energy finance at Texas Christian University.”organizationChevron“Reported $12.07 billion in second-quarter profits.”personRo Khanna“U.S. Representative from California who introduced a companion bill for a windfa”organizationGlobal Witness“Nonprofit organization that tracks oil company profits.”