Oil companies in the US have reported significant increases in their profits in the last quarter surprising even optimistic Wall Street analysts.
While ExxonMobil has reported a profit of $10.4 billion, Royal Dutch Shell has increased its net income by 40 percent from the previous year. BP and ConocoPhillips also reported similar boosts in profit and income.
Considering the demand for oil and the uncertainties regarding supply from the Middle East, the industry is expecting to continue its record breaking performance.
With gas prices as high as $3 a gallon, consumers and politicians have expressed iore over Exxon's profit.
The criticism is rather muted as compared to the public outrage following the rise in gas prices after hurricanes Katrina and Rita.
Exxon claimed a simple formula for success: Produce more fuel and command more prices for it.
As is the norm, subsequent investigations have found no evidence of illegal profiteering.
While Exxon Vice-President of investor relations stated that the company is investing in projects to bring in more fuel to help reduce prices, this has found little favor with a group called Exxpose Exxon who are instead demanding a cut in gasoline prices and offers of renewable fuel.
Though the company is increasing its capital spending, one-third of that increase is tied to rising costs of labor and equipment.
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