Senator Martin Heinrich plans to introduce legislation that would eliminate preferential tax treatment for U.S. oil and gas companies on their overseas extraction income. The bill would treat those profits the same as other foreign business income, close loopholes allowing extra foreign tax credits from shale oil and tar sands activity, and revise rules to stop producers from classifying government payments as taxes instead of royalties to reduce their U.S. tax bills. The move comes as Chevron reported second-quarter earnings of $12 billion, roughly quadruple the $2.5 billion from a year earlier, and ExxonMobil posted $14.5 billion, more than double the $7.1 billion in the same period of 2025, amid soaring profits driven by the U.S.-Iran war. Heinrich, the top Democrat on the Senate Energy and Natural Resources Committee, said oil majors should not get a tax break for going overseas to produce energy and can afford to pay their fair share at a time of billions in quarterly profits.
Chevron CorpBill would eliminate overseas tax breaks for oil companies, increasing Chevron's tax burden.
Exxon Mobil CorpBill would eliminate overseas tax breaks for oil companies, increasing ExxonMobil's tax burden.
