Oil giants have resisted pressure from the Trump administration to boost production as the United States faces high energy costs caused by the war in Iran.
Exxon Mobil and Chevron indicated Friday they do not plan to adjust their production strategies, even though the White House has advocated increased oil production as a way to lower energy costs for households.
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Exxon’s chief financial officer, Neil Hansen, told the Financial Times on Friday that there’s “no change” to the company’s strategy in the Permian Basin, a region that accounts for a significant amount of U.S. oil and gas. Similarly, Chevron’s finance chief Eimear Bonner also told the publication that the war has not led to any changes in the company’s plans.
The comments from the petroleum companies come as oil and gas prices hit their highest levels since the start of the war in late February. The price of Brent crude, the international benchmark, rose to $126 a barrel on Thursday, the highest level in four years. Meanwhile, the national average price of gasoline rose to $4.18 per gallon on Wednesday, the highest since 2022.
Earlier this month, Interior Secretary Doug Burgum and Energy Secretary Chris Wright urged oil producers, including Exxon and Chevron, to boost output.
President Donald Trump vowed to bring gas prices down below $2. The administration has taken several actions to ease the high prices, including by reducing regulations, adjusting sanctions, and emphasizing domestic production.
Exxon’s Hansen told the Financial Times that there is no need to shift strategy because “we’re already in high gear.”
Meanwhile, Bonner of Chevron told the publication that the company’s strategy is to “grow free cash flow, not grow production.”
“You wouldn’t expect us to be changing our plans significantly on the back of eight weeks of disruption,” she said.
The companies also released their first-quarter earnings, showing major declines in profits. Exxon reported it earned $4.2 billion, compared to $7.7 billion for the same quarter last year, a decline the company said is partially due to hedging-related losses. Nearly 20% of Exxon’s oil and gas production is in the Middle East.
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Chevron reported it earned $2.2 billion in the first quarter, down $3.5 billion from last year at the same period.
Trump met with oil and gas executives earlier this week to discuss ways the administration could continue to maintain the U.S. blockade in the Strait of Hormuz.
