Exxon Mobil, the multi-national American corporation and direct descendant of John D. Rockefeller's Standard Oil company, reported its biggest net profit last year on surging oil prices, the company announced on Friday.

Exxon Mobil had earnings of about $40.6 billion, which is 3 per cent higher than the amount earned a year before. The figure was higher than Exxon’s 2006 profit record which had set a record for an American corporation.

The fourth-quarter was Exxon’s most profitable quarter ever with a net income rising 14 percent, to $11.7 billion, or $2.13 a share, from $10.25 billion, or $1.76 a share, in 2006.

The corporation recorded annual sales of $404.5 billion, up 7 percent from 2006.

This great performance for Exxon comes on the background of tough time for top Western oil companies. The reserves and harder to find and expanding the production as access to resources has tightened in recent years in countries such as Russia and Venezuela. The oil industry is also facing difficulties because of the rising costs and shortages of workers, rigs and engineering capacity.
 
"They performed across the board, upstream, downstream, U.S. and foreign," said James Halloran, who helps manage about $35 billion at National City Private Client Group, Reuters wrote.

The oil price average was higher than $90 a barrel during the fourth quarter and nearly reached the $100 milestone due to tight supplies, geopolitical risks and the weak dollar.
In the fourth quarter of 2006, the oil price average was a bit over $60 a barrel

"The only negative thing I see going forward is production, they just can't grow production," said Chris MacDonald, a portfolio manager with WHG Funds in Dallas.