Oil Majors Face Price-Gouging Scrutiny as Profits Double

President Donald Trump called for a Department of Justice review of the oil sector last week, accusing the largest producers of price gouging while American motorists pay more at the pump. The request followed a surge in earnings at Shell (NYSE: SHEL), Chevron (NYSE: CVX), and ExxonMobil (NYSE: XOM) in the first half of 2026.

Shell's earnings rose to $2.94 per share from $1.40 a year earlier, a gain of more than 100%. Chevron posted $7.23 per share, up from $3.46. ExxonMobil reported $5.60 per share, an increase of about 66%. Revenue at each company climbed 22% to 28% over the same span.

The profit jump tracks a rally in crude oil that began late last year and accelerated after the escalation of conflict in the Middle East. Brent crude averaged about $82 a barrel in the first half of 2025. That average climbed above $95 in the first half of 2026, according to data from the U.S. Energy Information Administration.

Gasoline prices follow crude closely. The national average for regular unleaded stood at $3.89 a gallon on Tuesday, up from $3.18 a year earlier, AAA data show. That shift has drawn attention from politicians in an election year.

Trump's request followed similar calls from several Democratic lawmakers. Senator Elizabeth Warren of Massachusetts sent letters to the CEOs of Shell, Chevron, and ExxonMobil in July, asking whether the companies had coordinated pricing decisions.

Oil and gasoline are global commodities traded in open markets. The prices that Shell, Chevron, and Exxon receive for their products are set by supply and demand, not by the companies themselves. When oil prices fall, the same companies often post steep losses. Shell lost $2.3 billion in the first half of 2020 when Brent crude averaged $40 a barrel. Chevron lost $3.3 billion in the same period. No politician proposed subsidies then.

TotalEnergies, the French major, has tried to address the political pressure directly. The company limited fuel prices at its French stations to 1.99 euros per liter, even as it publicly rejected the label of “superprofits.”

For investors, the profit surge has been a mixed blessing. Shares of Shell are up about 18% year to date, Chevron is up 14%, and ExxonMobil is up 12%. All three trail the S&P 500’s gain of about 22% over the same period.

The political risk may be contained. Previous accusations of price gouging under Presidents George W. Bush, Barack Obama, and Joe Biden did not lead to sustained regulatory action. No federal price-control legislation has been introduced in the current Congress.

AlphaScala’s proprietary model rates Shell at 53 out of 100, a “Mixed” label that reflects neutral momentum and valuation signals. Chevron scores 65, “Moderate,” with stronger earnings momentum offset by a price-to-earnings multiple that has expanded to 14 times trailing earnings from 11 times a year ago.

Each of the three majors offers a dividend that has grown for years. Chevron yields 3.5%, Shell 3.4%, and ExxonMobil 2.5%. The payouts provide a return even when the stocks are not rising, though they also mean the companies are returning cash to shareholders rather than reinvesting all of it into production.

The price-gouging accusation is unlikely to fade as long as oil stays above $90 a barrel. The mechanism that produces the profits – a global commodity market – is the same one that produces losses when prices fall. The companies do not control it.