Just to remind you folks, who's reeling in the big fat bucks ... straight out of your pocket


Record oil boosts profits for BP, Royal Dutch Shell

By JANE WARDELL

The Associated Press




Europe’s two biggest oil producers, BP and Royal Dutch Shell, posted combined profits of $17 billion for the first quarter as oil prices surged to a record. Britain’s prime minister said some of those profits should be reinvested.


LONDON | BP PLC and Royal Dutch Shell PLC, Europe’s two biggest oil producers, posted forecast-busting first-quarter earnings on Tuesday, thanks to record crude oil prices.
The combined profits of $17 billion reignited calls for a windfall tax on oil profits as consumers struggle to pay for food and fuel.
British Prime Minister Gordon Brown suggested that some of those profits should be reinvested in costly exploration for new oil reserves in the North Sea.
BP posted a 63 percent surge in first-quarter net profit to $7.6 billion (4.9 billion euros), while Shell reported a 25 percent rise, to a record $9.08 billion (5.81 billion euros).
Revenue at BP jumped 44 percent to $89.2 billion (57.1 billion euros), while sales at Shell soared 55 percent to $114 billion (72.95 billion euros).
Last week, ConocoPhillips reported a 16 percent rise in net income to $4.14 billion. Like BP and Shell, the third-biggest U.S. producer far outpaced industry expectations.
More big profits are expected from the biggest two U.S. companies, Exxon Mobil Corp. and Chevron Corp., when they report first-quarter earnings later this week.
But because crude prices grew more quickly than prices for gasoline and other refined products, first-quarter profits tumbled 77 percent at Valero Energy Corp., North America’s largest refiner.
The San Antonio-based company said it earned $261 million, or 48 cents per share, in the quarter ended March 31, compared with $1.14 billion, or $1.86 per share, for the same quarter in 2007. Last year’s first-quarter profit was a record for the company.
Revenue rose to $27.9 billion in the recent quarter from $18.7 billion a year ago.
Major oil companies such as ConocoPhillips, Royal Dutch Shell and BP also have struggled with refining margins, but they were able to reap massive profits from their exploration and production arms — which Valero doesn’t have.
Valero chairman and chief executive Bill Klesse said the fundamentals for gasoline are improving, including demand.
“We still expect a good summer driving season,” Klesse said.

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