ExxonMobil Has Achieved Record Profits Despite Political Expectations

(CTN News) – It’s been a conservative industry for a long time. Meanwhile, ExxonMobil’s delegates have been hostile to it.

Democratic administrations have made oil companies some of their biggest profits. Obama and Biden didn’t like the oil industry, but they both made money from it.

Profits at oil companies are mostly driven by oil prices. Oil company profits should go up if a president drives up oil prices.

There are two kinds of policies. Production of oil is encouraged. This would increase oil supplies and lower prices. The other policy restricts drilling, which drives up prices. Oil companies profit from which policy?

In practice, it’s a little more complicated. Oil is a global market, so there’s also demand. As a result, whatever the U.S. president does can be offset by OPEC’s actions.

I thought it might be interesting to look at how ExxonMobil’s profits have changed over the last four administrations. As the biggest publicly traded oil and gas company, ExxonMobil is a good indicator of industry profitability.

January 20, 2001, was George W. Bush’s inauguration. Oil was important to him, but he also passed a comprehensive energy policy. He overtook 20 million BPD in oil consumption for the first time. He cut domestic oil production every year.

Bush’s eight years in office saw oil prices climb steadily. Exxon Mobil’s net income peaked in 2008 at $45.2 billion just before the 2008-2009 recession caused oil prices to crash, according to the FactSet database. earned $233.9 billion during President Bush’s eight years.

As of January 20, 2009, Barack Obama is the 44th president. Hydraulic fracturing started to impact the economy in Obama’s first year. During Obama’s first term, crude oil production rose all four years, reversing a long decline that began in 1970. As global demand rose, oil prices soared.

In the first year of President Obama’s administration, Exxon Mobil’s profits fell to $19.3 billion. By 2012, they were $44.9 billion. During Obama’s second term, Saudi Arabia and OPEC declared a price war on shale oil. In 2016, the last year Obama was in office,

Since 2001, ExxonMobil’s net income. I’m Robert Rapier

In Obama’s eight years, earned $224.8 billion. ExxonMobil’s profits under Obama would have topped those under Bush if not for two things – the recession and OPEC’s price war.

Prices rebounded in 2017, President Trump’s first year. In that year, earned $19.7 billion. Over the next two years, profits would stay there. ExxonMobil lost $22.4 billion in 2020 due to the Covid-19 epidemic. ExxonMobil made $32.5 billion while Trump was president.

President Biden was inaugurated in 2021 when oil prices were high. Oil production was lagging after the pandemic crash. The Biden Administration cut off Russian imports after Russia’s invasion of Ukraine in 2022, which sent oil prices soaring again.

ExxonMobil still made a record $55.7 billion profit in 2022, despite Biden releasing oil from the Strategic Petroleum Reserve. ExxonMobil made $114.8 billion during the Biden Administration.

During the past four presidential administrations, ExxonMobil’s highest profits have been under Democrats (Biden) and their biggest losses under Republicans (Trump). Both cases, though, had mitigating factors that went beyond the president’s policies.

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