Is it reasonable for an American administration to cause an increase in inflation within the United States and exacerbate the burden of living on its citizens, which threatens internal stability, while American companies and the ruling family reap huge profits?
Afrasianet - Yahya Al Sadeq - As inflationary pressures sweep global markets, threatening the livelihoods and food security of millions of people, major oil companies are busy accumulating more profits as oil prices continue to rise, which a few days ago exceeded the $110 per barrel threshold before falling to around $108 following Trump's exemption from some sanctions, allowing it to export diesel to the US and global markets.
Therefore, many believe that the rise in global oil prices is not only due to the repercussions of the war and supply shortages, but also to direct and indirect political interventions. Otherwise, why is the US so cold about the high levels of oil prices, even as the midterm congressional elections approach? Are there certain deals with US oil and gas companies? Or is the stalled efforts to cut prices ahead of the election pushing the US administration to resort to another option, which is to compensate for potential electoral losses with gains elsewhere, especially in light of the wide network of cronyism and interests associated with the Trump administration and his family?
Some may ask: Is it reasonable for an American administration to cause an increase in inflation within the United States and exacerbate the burden of living on its citizens, which threatens internal stability?
When the US administration decided to wage war on Iran, the calculations of the American citizen and the repercussions of the war on his life, livelihood and future were not the only considerations, but other interests took precedence over them, foremost of which was helping Israel complete its project in the region, and Trump's quest to control Iranian oil, similar to what happened in Venezuela and elsewhere. This is reminiscent of what happened during the invasion of Iraq, the destruction of Libya, the intervention in Syria, and other files.
Variable profits
The financial reports published by international oil companies for the first half of this year show significant profits, as a result of the overlap of a set of factors that vary from one company to another, depending on the nature of their activities and the location of their operations. This means that the rise in crude oil prices in the global markets was not the only factor behind the increase in the profits of oil companies, as refining, trading, distribution, and production activities also contributed to boosting financial results, and some of them may have had a greater impact than the impact of the rise in crude prices itself.
The financial statements indicate that the performance of large companies is uneven in terms of the size of profits achieved and their sources of growth. Some companies benefited from higher prices, while others made additional gains from refining and trading activities and higher profit margins on oil derivatives.
Saudi Aramco recorded an increase in its net profit during the second quarter of this year compared to the same period last year, driven by higher revenues related to sales of oil, refined products and chemicals, despite a decline in sales of some products.
As for U.S. companies, ExxonMobil recorded an increase in its adjusted profits during the first half of this year, from about $14.56 billion in 2025 to about $23.45 billion, an increase of about $8.90 billion. Chevron's net profit during the same period also increased from $6 billion to $14.3 billion, an increase of about $8.3 billion. The company noted that improved profits from refining activities contributed to this increase, along with higher prices and increased sales volumes.
In Britain, Shell benefited from oil and liquefied natural gas (LNG) trading activities and higher refining margins. According to its financial statements, its adjusted profit for the first half of this year increased by $6.91 billion compared to the same period last year, benefiting from improved prices, trading performance, and higher refining and chemical margins.
France's TotalEnergies reported adjusted net income of $11.4 billion in the first half of this year, while Norwegian company Equinor nearly doubled its adjusted net profit from $3.46 billion to $6.92 billion. The company attributed these results to higher oil and natural gas prices in Europe, as well as the performance of trading and refining activities.
In Italy, Eni's adjusted net income increased to around €3.6 billion in the first half of this year. In its financial statements, the company noted that production growth, an improved price environment and the performance of some energy and refining activities played a role in achieving these results.
In summary, three key findings can be drawn from the financial statements of oil and gas companies:
Higher oil prices do not raise the profits of all companies to the same extent. The volume of production, its geographical location, the ability to export, and the nature of the company's activities are all crucial factors in determining the size of the gains.
-Refining and derivatives trading gains may exceed crude oil production gains in some periods. The results of companies such as Shell, BP and TotalEnergies indicate the importance of refining margins and trading activities in boosting profits.
Quarterly profits are not a sufficient measure to determine the additional gains resulting from the war, as accurately measuring these gains requires comparing actual profits with hypothetical profits that would have been achieved in the absence of the war, taking into account the costs of disruption of production, transportation, and insurance, and losses resulting from damage to facilities or the inability to export.
And in the Gulf
Oil and gas companies in a number of Gulf countries, with the exception of Saudi Arabia, have faced pressure on their operations and financial results due to the disruption of oil and gas exports and the damage to some facilities due to the war on Iran. However, the extent of the damage varies from country to country, depending on the nature of production, the location of the facilities, the export routes, and the ability to use available alternatives.
Product loading and shipping through the Strait of Hormuz were affected, while facilities in some countries in the region were directly attacked. It is important to distinguish between losses from reduced production or export disruptions, and lower accounting profits due to higher costs or price changes. Assessing the financial impact of the war requires separate data for each company and country, rather than generalizing the results to the entire Gulf oil sector.
Just as global arms producers, especially Western ones, are interested in the persistence and geographic expansion of wars and conflicts, oil and gas companies are not immune from crises. As long as their operating costs do not drain their revenues and profits, and do not threaten the continuity of their business and plans, higher prices may turn into an opportunity to increase revenues, even when its causes are related to wars and supply disruptions.
Exploitation of opportunities may seem familiar in economic activity, from the smallest to the largest. But it is different when business interests overlap with government decisions and political and personal calculations, and the cost is at the expense of the livelihoods of millions of people.
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