The five Western oil majors have reported combined third-quarter profits of $56.3 billion, the third-highest quarterly total on record, as surging oil and gas prices, record refining margins and strong trading results lifted earnings. ExxonMobil, Chevron, BP, Shell and TotalEnergies all beat analysts' expectations for the quarter.

Refining did the heavy lifting

Refining, not drilling, drove the results. War damage in the Middle East and Ukrainian strikes on Russian facilities have sidelined about 10% of the world's fuel-making capacity, widening the gap between crude and refined product prices. Exxon's refining division earned a record $9.05 billion, almost five times a year earlier, while Chevron's refineries earned a record $4.93 billion, four times the year-ago figure. BP said more than half of its $8.46 billion in adjusted net income came from the unit that includes refining and trading, and posted its highest quarterly profit ever at $8.5 billion on a net basis.

Windfall, but no spending spree

Despite the windfall, the majors have been cautious with new spending. Shell cut its 2026 capital spending guidance by $1 billion to $23–25 billion, and combined buybacks were $12.3 billion, little changed from the previous quarter. Brent crude has surged around 60% since the Iran conflict began in late February, but producers appear unconvinced that today's conditions mark a lasting improvement in the industry's long-term outlook.