Exxon Clears More Than $100 Million Daily

The numbers are almost incomprehensible. ExxonMobil reported today that it made profits of morethan $36 billion for the year, $10.7 billion of that in the final 92 days of 2005.

That means that during the waning three months of 2005 Exxon was raking in more than $115million in profits a day. It's a pace that has never been realized by an American company at any timein history.

This astronomical daily take was due, in large part, to the high price of oil. A barrel of crudeaveraged more than $60 during the fourth quarter, 115 percent higher than the average price of abarrel during the past decade.

A couple of other stunning statistics put the company's record quarter into broader persepective:

Because integrated oil companies like ExxonMobil own everything from the wellhead to the retailpumps, higher crude prices mean higher profits.

Data from the American Petroleum Institute -- a lobbying group that represents the large oilcompanies -- show that ExxonMobil's profit margin (the amount of profit they earn for each dollar ofrevenue) was 10.7 percent during the last three months of 2005. They made a dime of profit forevery dollar they took in.

When compared with other industries, the profit margins seem almost paltry. Internet giant Yahoohad a 45.5 percent margin in the fourth quarter. Bank of America saw margins of 26.7 percent.

But that doesn't defray public outrage over the record profits at a time when they are paying highprices for everything from heating oil to gasoline. Several members of Congress renewed calls for awindfall profits tax on the industry after today's announcement from Exxon.

Analysts say that much of the record oil company profits will be rolled back into expandingexploration and production efforts. The firms are working to grab a bigger piece of the global oilmarket because prices are expected to remain high in the coming years.

Oil giants BP and Shell have yet to report their fourth-quarter earnings, but analysts expect both toreport record annual profits in the coming week.

Thomson Financial says that the oil industry will see earnings go up by around 45 percent overallduring the October to December timeframe when all is said and done.