American oil giants ExxonMobil and Chevron have reported decreased profits as declining commodity prices and reduced refining margins counterbalance their record-breaking oil production levels.

Exxon’s net income for the third quarter dropped 5.1 percent year-on-year to $8.6 billion, while Chevron saw a more significant decline, with net income falling 31 percent to $4.5 billion.

Despite these drops in profits, both companies exceeded forecasts and surpassed European competitors, bolstered by increased oil output that softened the impact of lower fuel margins. In New York, Exxon’s stock dipped by $1.80, or 1.5 percent, closing at $114.98, while Chevron’s shares rose by $4.22, or 2.8 percent, reaching $153.04.

Exxon and Chevron have concentrated on boosting their oil and gas production, in contrast to rivals BP and Shell, which have heavily invested in renewable energy projects that have not yet delivered substantial returns. Additionally, both US firms have profited from acquiring smaller oil companies.

In the third quarter, Exxon achieved record production of 4.6 million barrels of oil equivalent per day, reflecting more than a 24 percent increase from the previous year. This growth was driven by its $60 billion acquisition of Pioneer Natural Resources and the purchase of Denbury, a Texas firm focused on using carbon dioxide to enhance oil extraction from depleting wells.

Chevron also reported a 14 percent rise in third-quarter output to a record of 1.61 million barrels of oil equivalent per day, largely due to advancements in its US shale operations. The company added a drilling rig in the Permian Basin in the last quarter and plans to expand production in Kazakhstan in the upcoming quarter. Chevron is also involved in a $53 billion acquisition of Hess, an American energy company.

Both Exxon and Chevron recorded unprecedented levels of output from the Permian Basin, the premier shale region in the US. Exxon’s production in this area reached a historic 1.4 million barrels per day.

Kathryn Mikells, Exxon’s chief financial officer, emphasized the company’s focus on growth, stating: “We see tremendous opportunities to invest in profitable growth in both our existing and new businesses.”

Chevron reported a 22 percent increase in its Permian Basin production to a record 950,000 barrels per day, aided by last year’s acquisition of PDC Energy, and aims to hit one million barrels per day in this field by next year.

However, the robust production levels are threatened by uncertain demand, particularly from China, a key oil importer, along with the possibility that OPEC may soon lift production restrictions. The oil-producing intergovernmental group is anticipated to postpone a plan that would add 180,000 barrels per day, in light of concerns regarding weak demand and an oversupply situation.

As part of a strategy to divest $10 billion to $15 billion in assets by 2028, Chevron is expected to finalize asset sales in Canada, Congo, and Alaska by the fourth quarter of 2024. The company is also targeting between $2 billion and $3 billion in structural cost reductions from 2024 through the end of 2026.