On August 3, U.S. President Donald Trump publicly accused ExxonMobil and Chevron of making too much money from the energy shortages caused by the war in Iran. He demanded that these companies lower gasoline retail prices and return part of their profits to the public.
"Chevron made too much money, ExxonMobil also made too much money," Trump said. "When a company's profit reaches 12 times that of the same period last year, it should give back to the public."
These remarks are notable because Trump has always been one of the most staunch political allies of the U.S. oil industry.
During the 2024 campaign, “Drilling, Bubbles, Drilling” was one of Trump’s most iconic slogans. The oil and gas industry donated approximately $32.3 million to Trump and his associated political organizations that year, while donations from the renewable energy sector amounted to less than $460,000. After returning to the White House, Trump declared a “National Energy Emergency,” opening federal lands and coastal areas for drilling, accelerating approval processes for drilling operations, relaxing environmental regulations, and promoting American oil companies to return to Venezuela.
But when “energy prosperity” becomes just the numbers on the gas station price tags, cracks quickly appear in this alliance.
The Iran war and the disruption of transportation through the Strait of Hormuz have driven up international oil prices. The average price of regular gasoline in the United States has risen to about $4.10 per gallon, a increase of more than 30% compared to before the war started. Meanwhile, ExxonMobil's profits for the second quarter reached $14.5 billion, while Chevron's profits were approximately $12.1 billion. Together, these two companies generated over $26 billion in profits.
The oil company saw a beautiful financial report, but Trump saw an approaching electoral crisis.
Gas prices are the most direct indicator of inflation in the United States. Consumers may not be able to clearly define the core inflation rate, but they can see the prices at gas stations every day. As the midterm elections approach in November, high oil prices will not only increase the cost of commuting for households, but also spread through logistics, aviation, and food prices, directly impacting Trump’s main concern regarding "cost of living."
Even more embarrassing is that this energy crisis is closely related to the war against Iran participated in by the Trump administration. If the White House acknowledges that the war is the main cause of rising oil prices, it must take responsibility for its policies. By shifting the blame onto “greedy oil giants,” the problem can be rephrased as a business opportunism.
This also explains why Trump is particularly dissatisfied with Mike Woods, the CEO of Chevron. Trump believes that it was he who created the conditions for Chevron to return to Venezuela, but Woods did not give enough praise to the White House when announcing record-breaking performance. For Trump, this is not just a matter of price, but also an open challenge regarding 'who should receive the credit'.
However, there is a contradiction in requiring oil companies to expand drilling while simultaneously lowering prices and handing over profits. Oil and gasoline prices are primarily determined by global crude oil supply and demand, transportation risks, refining capacity, and inventory levels, and cannot be controlled solely by ExxonMobil or Chevron. The American Petroleum Institute also argued that the root cause of price increases is global supply constraints, rather than arbitrary pricing by companies.
Therefore, Trump is not truly breaking away from the oil industry this time. Unless the White House implements additional measures such as high-profit taxes, price controls, or formal sanctions, ‘returning profits to the public’ will be more of a political pressure tactic than a real shift in energy policy.
What has truly changed is the order of priorities in the relationship between the two parties: oil companies can be Trump's allies, but they cannot become a burden for the Republican Party in elections. When "drilling, oil, drilling" not only failed to bring cheap gasoline, but also resulted in record profits, what Trump needed was not an ally, but a target that could bear the anger of voters for the White House.
