By Vikas Bajaj The New York Times
FRIDAY, OCTOBER 28, 2005
NEW YORK Exxon Mobil and other energy companies have reported record profit for the third quarter on surging prices of oil and gasoline before and after the hurricanes struck the United States.
Exxon Mobil, the world's largest publicly traded oil company, reported on Thursday that profit rose 75 percent from a earlier, to $9.92 billion. Revenue rose 31.9 percent, to $100.7 billion.
Royal Dutch Shell said third-quarter profit rose 68 percent, to $9.03 billion. Revenue rose 6 percent, to $94.7 billion.
Marathon Oil reported third-quarter net income of $770 million, up from $222 million. Revenue jumped 40 percent, to $17.2 billion.
Some of the increase in profit was attributable to rising oil prices this summer even before Hurricanes Katrina and Rita struck the Gulf Coast. After the hurricanes, though, the price of gasoline, diesel, jet fuel and other refined oil products soared because of shutdowns at U.S. refineries.
Exxon said the hurricanes reduced oil production by 50,000 barrels a day and raised the company's costs by $45 million before taxes.
Daily natural gas production fell 9 percent, to 7.7 million cubic feet, or 218,000 cubic meters.
Exxon said it invested $4.4 billion on capital and exploration projects in the third quarter and $12.4 billion for the first nine months of the year.
The company's chief executive, Lee Raymond, appeared to address and deflect the public backlash that followed Katrina, when gasoline prices soared past $3 a gallon in many cities across the United States.
"Following the hurricanes, Exxon Mobil maximized gasoline production from all of our refineries which were operating in the U.S. and increased imports from overseas affiliates to meet U.S. demand," Raymond said.
But the news of the record profit by oil companies is sure to draw criticism from politicians and energy industry critics, who say the industry has not done enough to invest in increasing oil and gasoline supplies even as they earn billions of dollars.
This year is shaping up to be exceptionally lucrative for the oil industry. Chevron, the second-largest American oil company, was expected to post a quarterly profit of $4 billion on Friday.
NEW YORK Exxon Mobil and other energy companies have reported record profit for the third quarter on surging prices of oil and gasoline before and after the hurricanes struck the United States.
Exxon Mobil, the world's largest publicly traded oil company, reported on Thursday that profit rose 75 percent from a earlier, to $9.92 billion. Revenue rose 31.9 percent, to $100.7 billion.
Royal Dutch Shell said third-quarter profit rose 68 percent, to $9.03 billion. Revenue rose 6 percent, to $94.7 billion.
Marathon Oil reported third-quarter net income of $770 million, up from $222 million. Revenue jumped 40 percent, to $17.2 billion.
Some of the increase in profit was attributable to rising oil prices this summer even before Hurricanes Katrina and Rita struck the Gulf Coast. After the hurricanes, though, the price of gasoline, diesel, jet fuel and other refined oil products soared because of shutdowns at U.S. refineries.
Exxon said the hurricanes reduced oil production by 50,000 barrels a day and raised the company's costs by $45 million before taxes.
Daily natural gas production fell 9 percent, to 7.7 million cubic feet, or 218,000 cubic meters.
Exxon said it invested $4.4 billion on capital and exploration projects in the third quarter and $12.4 billion for the first nine months of the year.
The company's chief executive, Lee Raymond, appeared to address and deflect the public backlash that followed Katrina, when gasoline prices soared past $3 a gallon in many cities across the United States.
"Following the hurricanes, Exxon Mobil maximized gasoline production from all of our refineries which were operating in the U.S. and increased imports from overseas affiliates to meet U.S. demand," Raymond said.
But the news of the record profit by oil companies is sure to draw criticism from politicians and energy industry critics, who say the industry has not done enough to invest in increasing oil and gasoline supplies even as they earn billions of dollars.
This year is shaping up to be exceptionally lucrative for the oil industry. Chevron, the second-largest American oil company, was expected to post a quarterly profit of $4 billion on Friday.
