Oil companies are earning record profits this year and analysts do not foresee this trend tapering off, as oil prices are expected to remain high given the world's rising demand for fuel and supply threats in the Middle East and Africa.  As long as the global economy continues to grow, analysts say the industry can expect more record-breaking profits throughout the remainder of the year. 

Exxon Mobil announced second quarter profits of $10.4 billion last Thursday.  This was the second-best quarterly performance ever for a publicly traded company.  Royal Dutch Shell accelerated its second-quarter earnings even faster, posting net income of $7.3 billion after an increase of 40 percent from the year before.  BP said its quarterly profit rose 30 percent to $7.3 billion.  ConocoPhillips said its earnings rose 65 percent to $5.18 billion.   Including Chevron, these five oil giants are expected to earn an estimated $33.6 billion, or a 32 percent boost, according to analysts surveyed by Thomson Financial. 

Exxon Mobil executives said their success was based on a pretty simple formula: Produce more fuel and command higher prices for it.  "We continue to see demand growth year over year," Henry Hubble, Exxon's vice president of investor relations, told analysts. "We're selling everything we can make."  The company last year became the first in U.S. history to top $100 billion in revenue in a single quarter, representing a benchmark set in the third quarter.

Meanwhile, Exxon Mobil's performance was roundly booed by consumers smarting from high gasoline prices and politicians eager to curry their favor.  "Americans are paying near-record gas prices, oil companies are reaping billions in profit, but the response from the oil men in the White House and the Republicans in Congress has been billions for big oil and a backhand to the American people," Sen. Harry Reid, D-Nev., said in a statement.

The criticism was relatively muted, however, compared to the public outrage last fall following the huge spike in gas prices after hurricanes Katrina and Rita. The combination of soaring prices at the pump and record profit by the industry prompted Congress to summon the heads of the biggest oil companies to Washington to explain their runaway profit.  As has been the case every time gasoline prices skyrocket, a subsequent congressional investigation of the industry found no evidence of illegal profiteering.  "Although our company benefits from these conditions, we do recognize the impact today's high energy prices have on consumers and family budgets," Hubble said.  He said Exxon is investing in projects to bring more fuel supply to market to relieve high prices.