ExxonMobil, the No. 1 publicly traded oil company in the world, rode record crude oil prices to $10.9 billion in first-quarter earnings, despite lower production of oil.

ExxonMobil's 17 percent increase in quarterly earnings from a year ago continues a string of eye-popping earnings announcements from Big Oil companies in the United States and the United Kingdom this week, including BP, up 60 percent; Shell, 25 percent and Conoco, 17 percent.

"A rising tide lifted all ships," said Fadel Gheit, an oil industry analyst at Oppenheimer. "The gains from higher oil prices more than offset the lower production volume."

Still, Exxon's results fell short of Wall Street expectations, and its profits were $1 billion below the record it set in last year's fourth quarter. Exxon's net income rose to $2.03 a share, while analysts had expected $2.13 a share.

Exxon's share price fell 3.6 percent to close at $89.70 in trading yesterday on the New York Stock Exchange.

Analysts said Exxon's lower numbers were caused by everything from the weak U.S. dollar — which means the rest of the world is paying less per barrel of oil than U.S. oil companies are — to gas prices at the pump not rising as quickly as the cost of crude oil, which squeezes profit margins for U.S. refinery operations.

"It's not a pretty environment to be operating in," said Justin Perucki, an oil analyst at Morningstar, the investment research firm in Chicago. "The U.S. is feeling the brunt of the pain."

While Exxon's earnings may have disappointed Wall Street, record profits by oil companies and rising fuel prices have ignited a backlash from some politicians and consumer activists. They're calling for a windfall profits tax and other measures to rein in what they believe to be excessive profits.

Last year, ExxonMobil's record $41 billion in earnings was the highest ever for a U.S. corporation. At the same time, oil prices this year have nearly doubled from 2007, at times rising well above $100. Drivers also are outraged over retail gas prices topping $4 around the country.

Consumer Watchdog, a non-profit consumer advocacy group in Santa Monica, Calif., said that record oil company profits are hurting the economy and consumers.

"With gasoline prices topping $4 a gallon in some cities and averaging $3.60 nationwide, nobody is surprised to see the latest string of outrageous profits posted by Big Oil," John Simpson, consumer advocate at Consumer Watchdog, said. "People are driving less, but for every trip they cancel, rising prices at the pump more than wipe out their savings."

Even with record profits, the U.S. oil industry faces steep challenges, according to Gheit — including competition from state-backed oil giants in Russia, China and India.

A long economic slump that could lead to higher prices for steel, energy and other refinery costs.