US oil companies are investing to squeeze out more fuel from refineries and bringing shuttered plants back online in response to conflicts in Russia and Iran that have crimped supplies.
ExxonMobil Chief Executive Darren Woods said Friday the company had achieved "record fuels utilization" outside of the Middle East, pointing to 100 percent crude utilization at US Gulf Coast refineries.
The statements come as US gasoline prices remain above the politically sensitive $4 per gallon level and as diesel prices linger near all-time highs above $6 per gallon.
"In the third quarter, we continued to rise to the challenge of meeting global energy needs," Woods said in a press release.
But Woods told analysts on an earnings conference call that there were a "lot of variables" behind the crunch in supply of diesel and other key refined items. Besides lost capacity in the Middle East and Russia from Ukrainian drone strikes, Woods cited a decline in Chinese refined output.
"My guess would be it will take certainly well through to next year before we see things getting back closer to normal," he said. "But it could be longer than that."
US rival Chevron said it achieved record throughput at refineries during the quarter.
"We're reinvesting to bring more energy to a supply-constrained market," said Chief Executive Mike Wirth.
But about 10 percent of the world's refining capacity remains off line, said Chevron Vice Chairman Mark Nelson.
"I would expect margins to eventually moderate as refinery runs recover and export flows increase," Nelson said on a conference call. "But that will take some time."
Both companies reported a more than doubling of quarterly profits Friday as oil giants reap financial rewards from spiking commodity prices and refinery margins. Steep price increases and supply shortfalls in some cases have sparked protests in parts of Asia, Latin America and Europe.
- Russian refining hit -
Executives have pointed to a cutback in output from Asian plants as Iran's blockage of shipments through the Strait of Hormuz has taken key crude oil off the market.
Another factor has been attacks by Ukraine on Russian plants, which had accounted for 6.5 percent of global refining capacity in 2025, according to KPMG.
The International Energy Agency said in September that just five Russian refineries remain unaffected by a barrage of drone attacks launched by Ukraine since the Russian invasion in 2022.
Russia's normal volume of 6.5 million barrels a day at 32 refineries had fallen to just 3.8 million barrels per day, its lowest level in 20 years, according to the IEA.
An October 21 report from Rystad Energy warned that Russia could become a net importer of gasoline and diesel in 2027.
On Friday, Russia's deputy prime minister for energy issues, Alexander Novak, told a reporter from state TV that Ukraine had resumed attacks on Russian plants, hitting three oil refineries and one gas-chemical complex.
On Friday, ExxonMobil's profits for the third quarter came in at $15.4 billion, slightly more than double the $7.5 billion in the year-ago period, while Chevron's profits were $9.9 billion, compared with $3.5 billion in the year-ago quarter.
But surging prices of gasoline and diesel have become a political albatross for US President Donald Trump, whose administration has pressed oil companies to take actions to soften the blow on consumers.
The US oil companies pointed Friday to steps to boost capacity. ExxonMobil spent around $17 billion on refining to boost capacity, including expansions at a plant in Beaumont, Texas, with work ongoing at another plant in Baytown, Texas.
Such investments are expected to add 100,000 barrels per day of additional distillate capacity, Woods said.
US refiner Valero Energy announced Friday that it reached a deal to acquire a shuttered Houston refinery from LyondellBasell for $320.5 million. It plans an initial restart by the end of 2027.
"This acquisition is a unique opportunity to strategically expand Valero's US Gulf Coast footprint at a fraction of replacement value and enhance the long-term strength of our refining system," said Valero CEO Lane Riggs.
