Facing pressure from Trump, the two energy giants in the United States refuse to increase oil production.

In the face of the most serious energy crisis in decades, the two energy giants in the United States, Exxon Mobil Corporation (XOM.US) and Chevron Corporation (CVX.US), are resisting pressure from the White House to increase oil production, adhering to their pre-war strategy of prioritizing financial returns over production growth. According to the Financial Times of London, despite recent calls from President Trump to increase drilling in the oil industry, the financial heads of these two super giants have clearly stated that they will not change their core business plans due to recent oil market turmoil. The management of the companies emphasized that the current strategic focus remains on expanding free cash flow, rather than simply increasing production capacity. The Iran war has significantly reduced oil production in the Gulf region and impacted refinery operations in the Middle East and other regions, leading to energy shocks that could exacerbate global inflation. Currently, international oil prices have soared to their highest level since the start of the war at $126 per barrel, and domestic gasoline prices in the United States have risen to over $4 per gallon, directly undermining Trump's efforts during his election campaign to reduce oil prices to below $2 and lower the cost of living for the public. To alleviate supply shortages, the U.S. government has ordered the release of strategic oil reserves. At the same time, for investors, although oil companies have rejected calls for increased production in the upstream sector, they are maximizing capital returns by operating their refineries at record levels of utilization, taking advantage of high prices for diesel and other refined products in the market volatility. Adhering to established strategies, refusing to change plans for short-term crises In response to the government's calls, both giants have stated that their operational plans in major production areas will remain unchanged. Neil Hansen, Chief Financial Officer of Exxon Mobil Corporation, stated in an interview with the Financial Times that the company's strategic position in the dominant oil and gas production area of the Permian Basin in the United States "has not changed." He pointed out, "We do not need to shift gears to speed up, as we are already in high gear. This does not mean that we do not evaluate the potential for expansion, but there are objectively limitations." Eimear Bonner, Chief Financial Officer of Chevron Corporation, also emphasized to the Financial Times that "the crisis has not prompted us to change any plans." She clearly stated that Chevron Corporation has the ability to grow in the Permian Basin, but this is not the company's established strategy, as its core focus is on increasing free cash flow, not production. Bonner added, "We should not expect us to make significant changes to our plans just because of an eight-week supply interruption." Financial reports are hindered by hedging losses, companies emphasize resilience to shocks The financial data for the first quarter released on Friday shows that both companies' profits have been significantly affected by losses related to unrealized hedging of commodities. As of the end of March, Exxon Mobil Corporation reported a net profit of $4.2 billion, a 46% year-on-year decrease, primarily due to a $3.9 billion unrealized loss. The company expects this mismatch to naturally disappear as contracts are fulfilled in the coming months. Despite the decline in profits, Exxon Mobil Corporation announced that it will pay a second-quarter dividend of $1.03 per share. Chief Executive Officer Darren Woods attempted to reassure investors in a statement: "This quarter demonstrates that Exxon Mobil Corporation is a stronger company than a few years ago, aimed at coping with business disruptions and crossing various market cycles." In contrast, Chevron Corporation, with relatively smaller risk exposure, reported a first-quarter net profit of $2.2 billion, a 37% year-on-year decrease, including a $2.9 billion unrealized loss. Political shocks affect production, production consolidation and refining become focuses The GEO Group Inc political crisis has had a differentiated impact on the global supply chain of different oil companies. Exxon Mobil Corporation has the highest risk exposure to the Middle East crisis, with its operations in the UAE and Qatar accounting for 20% of the company's total oil production last year. The company warned in April that the Middle East conflict would result in a global production loss of around 6% in the first quarter. Chevron Corporation's production performance benefitted from previous mergers and consolidations. The financial report shows that with the completion of the integration of American oil and gas producer Hess, along with production growth in the Gulf of America and the Permian Basin, Chevron Corporation's daily production increased by 500,000 barrels compared to the first quarter of 2025. It is worth noting that Chevron Corporation CEO Mike Wirth met with President Trump this week along with several other executives. Despite facing direct pressure from Washington, the two energy giants did not make concessions at the upstream end of oil extraction, but chose to operate their refineries at full capacity in order to lock in high profits from refined products in the current energy shock. This article is translated from "Wall Street Insights", author: Ye Zhen, edited by GMTEight: Li Cheng.