{"id":4211,"date":"2026-07-11T10:08:36","date_gmt":"2026-07-11T10:08:36","guid":{"rendered":"https:\/\/metrotransitreview.com\/?p=4211"},"modified":"2026-07-11T10:08:36","modified_gmt":"2026-07-11T10:08:36","slug":"oil-giants-to-gain-billions-from-iran-war-but-wont-ramp-up-drilling-despite-trumps-insistence","status":"publish","type":"post","link":"https:\/\/metrotransitreview.com\/?p=4211","title":{"rendered":"Oil giants to gain \u2018billions\u2019 from Iran war \u2014 but won\u2019t ramp up drilling despite Trump\u2019s insistence"},"content":{"rendered":"
\n

The US energy industry is bracing for a huge windfall from the Iran war, but oil majors aren\u2019t planning to ramp up drilling \u2013 even as the Trump administration pushes them to lower gasoline costs.<\/p>\n

Read more Jazz Chisholm Jr. blasts dramatic ninth-inning homer to lift Yankees past Nationals for another win<\/a><\/p>\n

President Trump has repeatedly pressured American energy giants to \u201cDrill, baby drill!\u201d and recently threatened to investigate the industry for price-gouging as Americans feel pain at the pump \u2013 a concern for Republicans ahead of the midterms.<\/p>\n

But oil majors are reluctant to build out more rigs and wells, resisting White House pressure as they claim their bumper profits are just a temporary boost.<\/p>\n

\u201cI think the industry is strong,\u201d Joe Adamski, managing director of ProcureAbility, a supply chain consultancy, told The Post. \u201cWe are sitting at a very good position compared to the rest of the world \u2026 [but] oil companies are looking at it and saying this is a blip on the radar.\u201d<\/p>\n

In a preview of its second-quarter earnings, Exxon Mobil said this week it could see a $5 billion jump in profits \u2013 pushing adjusted earnings to $15.7 billion, or triple the previous quarter.\u00a0<\/p>\n

Experts said Chevron and Shell are also expected to report blowout second-quarter earnings later this month, similar to their first-quarter results \u2013 which came in 45% and 37% higher than expected, respectively.<\/p>\n

\u201cIt\u2019s going to be extra billions of dollars, as we saw with Exxon Mobil,\u201d Jeff Krimmel, founder of Krimmel Strategy Group, told The Post. \u201cIt\u2019ll be a multibillion gain across the industry just based on all the disruptions that continue to exist that really peaked toward the end of the second quarter.\u201d<\/p>\n

Big markups<\/h2>\n

The huge windfall for US oil majors comes as attacks on vessels and airstrikes in the Middle East have largely choked off the Strait of Hormuz, a vital maritime route for 20% of the world\u2019s oil. That has sent demand skyrocketing for alternatives like US crude, which peaked above $110 a barrel in April.<\/p>\n

Markups on US crude jumped to an all-time high \u2013 as much as an extra $30 to $40 a barrel \u2013 as Asian and European refiners competed for the limited supply while scrambling to replace Middle Eastern oil stuck in the strait.<\/p>\n

As of Friday, US crude oil futures traded at $71.25 a barrel while Brent crude hit $75.61 \u2013 set to end the week higher after Trump said the ceasefire with Iran was \u201cover\u201d and military strikes near the Persian Gulf again derailed traffic through the strait.<\/p>\n

Trump has been pushing for more fossil fuel output, repeatedly urging companies to expand drilling operations and declaring a national energy emergency on the first day of his second term in January 2025.<\/p>\n

Last year, the Interior Department issued an aggressive proposal to expand offshore drilling near Florida and along the entire California coastline \u2013 fueling fierce pushback from local politicians fearful of oil spills.<\/p>\n

In March, the Trump administration exempted drilling in the Gulf of America from the Endangered Species Act, citing \u201cnational security\u201d concerns about oil supplies amid the war in Iran. Conservationists have decried the move, citing a risk to wildlife, particularly endangered whales.<\/p>\n

Despite the policy changes, oil majors have been reluctant to spend their profits on building out more rigs and wells, as they expect demand to normalize quickly once the war ends unless there is severe lasting damage.<\/p>\n

In a worst-case scenario for the oil industry, OPEC \u2013 the world\u2019s most powerful oil cartel \u2013 could fall apart, and dominant Saudi Arabia could ramp up its energy production too far for others to compete, potentially sending oil as low as $40 a barrel, according to a CNN report.<\/p>\n

Efficiencies, not new drilling<\/h2>\n

US giants\u2019 stance does not mean production has been slowing. US crude oil production hit a new record in 2025 of 13.6 million barrels per day according to the US Energy Information Administration. By comparison, the entirety of Europe, excluding Russia, reportedly produced about 4 million barrels per day \u2013 or less than 4% of the global share.<\/p>\n

Read more US demands Iran issue public statement proclaiming Strait of Hormuz open \u2014 or else<\/a><\/p>\n

However, it was efficiencies like better equipment and technology \u2013 not extra drilling \u2013 that helped boost production last year, according to Krimmel.\u00a0<\/p>\n

The number of active rigs and wells that were drilled in the US actually dipped, according to the EIA.<\/p>\n

\u201cWe saw oil prices get above $90, even $100 temporarily during this war, and there was no huge rush to add rigs, to add production,\u201d Krimmel said. \u201cWe already had a production surplus going into the war. A lot of analysts are expecting to reapproach that surplus as these flows normalize now.\u201d<\/p>\n

In May, Exxon Mobil and Chevron said that despite the Iran war, they did not intend to drill much more oil than initially planned.<\/p>\n

Adamski said fears of political blowback are also likely keeping oil majors from building out new rigs, an expensive process that can take years and face opposition from environmentalists.<\/p>\n

\u201cThey are sensitive to being in a political storm, that they would have a target on their back and Congress will start talking again about windfall profit taxes and things like that,\u201d Adamski said.<\/p>\n

\u201cSo they want to avoid putting in the appearance that they are taking advantage of this, so instead they\u2019re doing share buybacks, they are paying down debt. They\u2019re doing things like that.\u201d<\/p>\n

Pain at the pump<\/h2>\n

But oil majors\u2019 massive profits could draw scrutiny as the war in Iran eats into wallets, costing Americans roughly $1,000 per household in higher fuel, food and other expenses, according to economist Mark Zandi.\u00a0<\/p>\n

Trump has been eager to lower gasoline prices ahead of the November midterms, most recently heralding a new chain of gas stations on social media that are selling gas for $3.479 a gallon \u2013 well below market prices and wholesale costs.\u00a0<\/p>\n

The White House said these \u201cFreedom Fuel\u201d stations, which are mostly located near Philadelphia and in southern New Jersey, are run by a private company with no government support. It is unclear who is running the stations and for how long.<\/p>\n

Last week, the Department of Justice asked state attorneys general to investigate potential antitrust violations by energy giants \u2013 after Trump accused them of price-gouging.<\/p>\n

\n<\/div>\n

\u201cI have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I\u2019m seeing!\u201d the president wrote in a Truth Social post in June.<\/p>\n

Gas has been slower to come down than oil, hitting $3.88 a gallon Friday after peaking at $4.56 this spring, according to AAA \u2013 but experts said that is a normal reaction since there is typically a lag between gasoline and oil prices.<\/p>\n

\u201cIt really is just politics. The public gets angry when gas prices go up, and politicians need to be seen as being responsive to that anchor,\u201d Krimmel told The Post.<\/p>\n

\u201cThat\u2019s about the extent of the action that you\u2019ll see out of the federal government\u2026There is zero indication that anything nefarious is happening there.\u201d<\/p>\n

Read more Randolph Mantooth, \u2018Emergency!\u2019 star who played Johnny Gage, dead at 80<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The US energy industry is bracing for a huge windfall from the Iran war, but oil majors aren\u2019t planning to ramp up drilling \u2013 clashing with the Trump administration\u2019s energy agenda.<\/p>\n","protected":false},"author":1,"featured_media":4210,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-4211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nOil giants to gain \u2018billions\u2019 from Iran war \u2014 but won\u2019t ramp up drilling despite Trump\u2019s insistence - Metro Transit Review<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/metrotransitreview.com\/?p=4211\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Oil giants to gain \u2018billions\u2019 from Iran war \u2014 but won\u2019t ramp up drilling despite Trump\u2019s insistence - 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