Net income for major U.S.-based energy-producing companies tumbled 32 percent in 2008 compared with 2007, according to the Energy Information Administration in their "Performance Profiles of Major Energy Producers 2008."

The EIA said net income for the 27 companies profiled was $87 billion in 2008 compared with $127 billion in 2007, with the companies earning a 16 percent return on stockholders’ equity in 2008 compared with a 25 percent average from 2004 to 2007.

For the refining, marketing segment net income sunk 55 percent in 2008 from 2007 for these companies, with return on investment in place for domestic refiners down 3 percent in 2008 while foreign ROI jumped 26 percent, which is the highest rate since 1980. In 2007, domestic and foreign ROI for the segment was nearly identical.

Capital expenditures in the domestic refining, marketing segment for the companies in the survey increased 24 percent from 2007 to $26 billion in 2008 while foreign refining and marketing capital expenditures increased 11 percent.

"Oil and natural gas production continued to be the most profitable business segment, contributing $72 billion in net income, but this was a decline of 19 percent from 2007," said the EIA. ROI fell to 13 percent in 2008 from 17 percent in 2007.

Cash flow from operations increased 13 percent from 2007 to $220 billion in 2008, despite the decline in net income.

"The largest use of cash was for capital expenditures, which increased 18 percent from 2007 to $199 billion in 2008, second only to 2006 as the highest ever reported in the...survey," said the EIA.

Expenditures for exploration, development, property acquisition, and production increased 31 percent from 2007 to $216 billion in 2008, which is the highest ever reported for the survey.

Worldwide production of crude oil and natural gas liquids combined by the profiled companies declined in 2008 although their global oil reserves increased 2 percent.

"Worldwide production of natural gas increased while worldwide natural gas reserve additions fell as the large decline in additions for the U.S. onshore by itself exceeded increases from five foreign regions," said the EIA.

Average worldwide finding costs for the companies jumped 26 percent from the previous period to $23.84 bbl of oil equivalent in the 2006 to 2008 period. Lifting or production costs increased 24 percent from 2007 to $12.59 per boe in 2008.

The annual report is legislatively mandated, with the EIA presenting the U.S. Congress a comprehensive financial review and analysis of the domestic and worldwide operations of the major U.S.-based energy-producing companies.

Those companies include: Alenco, which is owned by Encana and BP America, Anadarko Petroleum Corp., Apache Corp., BP America, Inc., Chesapeake Energy Corp., Chevron Corp., CITGO Petroleum Corp., which is owned by Petroleos de Venezuela, S.A, ConocoPhillips, Devon Energy Corp., El Paso Corp., EOG Resources, Inc., Equitable Resources, Inc., ExxonMobil Corp., Hess Corp., Hovensa, Lyondell Chemical Corp., Marathon Oil Corp., Motiva Enterprises, L.L.C., Occidental Petroleum Corp., Shell Oil Co., owned by Royal Dutch Shell plc., Sunoco, Inc., Tesoro Petroleum Corp., The Williams Cos., Inc., Total Holdings USA, Inc., owned by Total S.A., Valero Energy Corp., WRB Refining LLC and XTO Energy, Inc.