Oil giants to gain billions from Iran war but wont ramp up drilling despite Trumps insistence

The US energy industry is bracing for a huge windfall from the Iran war, but oil majors aren’t planning to ramp up drilling – even as the Trump administration pushes them to lower gasoline costs.President Trump has repeatedly pressured American energy giants to “Drill, baby drill!” and recently threatened to investigate the industry for price-gouging as Americans feel pain at the pump – a concern for Republicans ahead of the midterms.But oil majors are reluctant to build out more rigs and wells, resisting White House pressure as they claim their bumper profits are just a temporary boost.“I think the industry is strong,” Joe Adamski, managing director of ProcureAbility, a supply chain consultancy, told The Post.“We are sitting at a very good position compared to the rest of the world … [but] oil companies are looking at it and saying this is a blip on the radar.”In a preview of its second-quarter earnings, Exxon Mobil said this week it could see a $5 billion jump in profits – pushing adjusted earnings to $15.7 billion, or triple the previous quarter. Experts said Chevron and Shell are also expected to report blowout second-quarter earnings later this month, similar to their first-quarter results – which came in 45% and 37% higher than expected, respectively.“It’s going to be extra billions of dollars, as we saw with Exxon Mobil,” Jeff Krimmel, founder of Krimmel Strategy Group, told The Post.

“It’ll be a multibillion gain across the industry just based on all the disruptions that continue to exist that really peaked toward the end of the second quarter.”The huge windfall for US oil majors comes as attacks on vessels and airstrikes in the Middle East have largely choked off the Strait of Hormuz, a vital maritime route for 20% of the world’s oil.That has sent demand skyrocketing for alternatives like US crude, which peaked above $110 a barrel in April.Markups on US crude jumped to an all-time high – as much as an extra $30 to ...