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Exxon Mobil Breaks Profit Record on Oil Price Surge

The world's biggest oil company, Exxon Mobil, says its profits shot up 14 percent in the second-quarter of the year compared to a year ago, as oil prices soared.

The company Thursday reported earning nearly $11.7 billion, breaking its own record for the biggest quarterly profit ever reported by a U.S. company.

Exxon says it made $10 billion from oil production and sales, benefitting from the record high price of oil.

Profits were still less than analysts had expected. The company's stock price fell about three percent during trading today.

U.S. Senator Chuck Schumer, a Democrat from the northeastern state of New York, criticized American oil companies for misusing their profits.

He said Exxon spends more money on its chief executive officer than it does on energy research. He urged the company to use its earnings to expand domestic oil production, in a bid to bring down fuel prices.

U.S. President George Bush has also urged greater domestic oil exploration to lessen America's dependence on foreign sources. Speaking to a coal industry group Thursday in West Virginia, the president repeated his call for Congress to lift a ban on offshore oil exploration.

Europe's largest oil producer has also reported huge earnings. Royal Dutch Shell, says its profits rose 33 percent in the second quarter.

Some information for this report was provided by AP and Reuters.