WASHINGTON, May 5 (Xinhua) -- U.S. oil companies are seeing stellar profits this year. But record-high gas prices are walloping consumers' wallets, and it remains uncertain when they will get relief.
OIL COMPANIES SEE RECORD PROFITS
U.S. oil giant Chevron more than quadrupled its profits in the year's first quarter, the company announced Friday.
The oil behemoth reported 6.3 billion U.S. dollars in earnings -- a sharp rise from 1.37 billion dollars in the same quarter last year.
The company's revenue skyrocketed to 54.37 billion dollars in the quarter, up from 32.03 billion dollars a year ago.
Perhaps in a sign of confidence in the oil industry, Berkshire Hathaway, of which legendary investor Warren Buffett is CEO, added a large chunk of Chevron's stock to its portfolio in the first quarter. That made Chevron the fourth largest equity holding of Berkshire Hathaway.
The investment was valued at 25.9 billion dollars at the end of March, according to the firm's filing on Saturday.
Oil giant Exxon Mobil saw earnings of 5.5 billion dollars in the first quarter, the company announced Friday.
That's around double the earnings from the same period last year, although down from 8.87 billion dollars earned during last year's fourth quarter.
Many oil companies are reluctant to raise production levels, as they are not willing to increase investment and then get left holding the bag when oil prices decline.
From their perspective, it makes sense. But for many consumers, gas prices have made life much more difficult.
LOW INCOME AMERICANS FEEL THE STING
A recent ABC News/Ipsos poll found that half of Americans are experiencing financial hardship due to high gas prices, with one in five reporting "serious" difficulties.
Individuals with a high school diploma or less, or 29 percent, and minority Americans, or 28 percent, are most likely to see serious hardship, according to the poll.
Surging gas prices will cost the typical household an extra 2,000 dollars a year, according to a March research note from Yardeni Research.
That is on top of the higher food costs that Americans are seeing due to the highest inflation in 40 years.
One in three adults said they cut back on using their cars last month, with most citing high gas prices, according to a poll from Morning Consult.
Oil prices have skyrocketed to their highest level in well over a decade, after the start of the conflict in Ukraine, which has led to turbulence in global oil markets. Soaring post-COVID demand and not enough output have also contributed to the price spike.
As of Tuesday, the national gas prices averaged 4.204 dollars per gallon, up sharply from 2.904 dollars per gallon this time last year, according to the American Automobile Association (AAA).
"We don't know," when gas prices will go back down, AAA Spokesperson Andrew Gross told Xinhua.
"We don't see any reason why they're going to fall," he said, noting that oil, a main ingredient of gasoline, is putting much upward pressure on gas prices.
"We're going to continue to increase our production throughout the rest of this year and into next year," said Andrew Lipow, president of Lipow Oil Associates, a consulting firm.
But it remains unknown whether increased U.S. production will calm volatile global oil markets and push prices back down.
Meanwhile, U.S. drivers on fixed budgets, as well as those dependent on cars to cart their kids off to school, go grocery shopping and commute to work, are expected to continue to feel the pain at the pump.
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