What's going on?

America�s oil giants ExxonMobil and Chevron defied the odds to report some super-slick results on Friday.

What does this mean?

The first quarter of 2022 was something of an oil bonanza, with the war in Ukraine unleashing sky-high energy prices around the world. So you�d think it would have been tough for oil companies to keep the party going last quarter, especially with Brent crude � a key oil benchmark � down by an average of 16% versus the same time last year. But America�s oil giants refused to bow out, keeping a tight grip on spending to keep margins plump. Exxon, for instance, cranked up output from new offshore developments, hitting a record $11.4 billion in profit � its biggest first-quarter profit ever and more than double the year before. And Chevron dodged the bullet too, relying on its oil refining business to plug the gap left by slipping prices � ultimately netting a slick profit of $6.6 billion.

Why should I care?

For markets: Feeding frenzy.
Chevron sees oil markets bouncing back in the second half of the year, banking on China�s reopening to rev up demand. But even if global economies start sputtering, Exxon and Chevron have aces up their sleeves: massive cash reserves (we�re talking $33 billion and $16 billion, respectively). So even if things do go south, they can simply snap up smaller rivals, juicing growth and snagging sweet deals on struggling competitors.�

The bigger picture: Like oil and water.
Maintaining this stellar performance could be kind of tricky. See, oil prices have been on a slippery slope lately, thanks to fears a that downturn could hit demand. And it seems like trouble is indeed brewing in the West. US economic growth fell short of expectations last week, after all � and while the eurozone did manage to return to growth, it looks like the bloc is currently just about treading water.�