IRVING, Texas — Exxon Mobil’s third-quarter income jumped 55 percent thanks to higher oil prices and increased production.
The world’s largest publicly traded oil company Thursday reported earnings of $7.35 billion, or $1.44 per share. That compares with $4.73 billion, or 98 cents per share, in the year-ago period. Revenue increased 15.8 percent to $95.3 billion.
Oil companies have seen profits jump as crude prices increased 12 percent year over year, and prices should continue to rise. The International Energy Agency forecasts that world oil consumption will grow next year to 88.2 million barrels a day.
Earlier Thursday, Royal Dutch Shell said quarterly profits climbed by 6.5 percent to $3.46 billion with higher oil prices mitigating charges in its refining business.
Selling crude for more money has helped offset unexpected drilling expenses and a drop in Gulf of Mexico production after BP’s giant oil spill.
The U.S. shut down deep-water exploration for several months after the April explosion on the Deepwater Horizon rig, and regulators set tough new rules that nearly halted drilling activity in the gulf.
David Rosenthal, Exxon Mobil vice president of investor relations, said the company continues to review the new regulations, though it plans to move forward with a project in the gulf.
“We plan to submit in the near term our next permit application to get that drill underway,” Rosenthal told analysts in a conference call.
In July, Exxon took the lead in organizing a $1 billion containment network that will eventually be used to respond to future spills in the gulf.
While companies like ConocoPhillips have said they plan to idle some natural gas wells and wait for prices to bounce back, Exxon said it hasn’t changed its plans. The acquisition of XTO Energy earlier this year made Exxon the largest natural-gas company in the U.S. with rights to numerous underground shale deposits.
Argus Research analyst Phil Weiss said it costs less to drill for natural gas in shale than elsewhere, so Exxon can still turn a profit from its wells, although it might be a small one.
