Despite record profits, oil companies find little comfort in high prices

PARIS: As crude oil prices topped $100 a barrel in January, some of the world’s major oil companies rang up annual profits that beat the bottom lines of any other company, in any other line of business. Yet, despite appearances, industry analysts are not rushing to pat the majors on the back.

Exxon Mobile, the largest oil company, reported at the start of this month a record 2007 profit of $40.6 billion, earnings that trounced any other company. Royal Dutch Shell reported the largest earnings of any company in Britain, at about $31 billion.


But amid rising consumer resistance to high prices of gasoline and other refined products, analysts and even some oil company executives have a hard time putting a positive spin on the future.

“As far as the outlook, it is pretty horrible,” said Peter Hitchens, an oil analyst at Seymour Pierce in London.

IHT