Exxon Mobil profit slipped about 1 percent in the second quarter, disappointing analysts as higher exploration and production costs, and lower oil and gas production offset big earnings in the refining and marketing end of the business.

Though the $10.26 billion in profit was the fourth-largest quarterly profit for a public company in U.S. history, Exxon’s stock fell $4.56 a share, or 4.9 percent, to $88.23 a share. The company’s shares are still up 15 percent this year. Earnings per share were $1.83, up from $1.72, after $7 billion in share buybacks, but earnings fell short of analysts’ estimates.

Revenue was $98.35 billion, down from $99.03 billion.

“Exxon obviously was a big disappointment because they spoiled us” with consistent profit gains, said Fadel Gheit, an oil analyst at Oppenheimer & Sons. He compared the company to New York Yankees star third baseman Alex Rodriguez. “When A-Rod strikes out, people say, ‘My God’ in disappointment because he’s hitting a home run every other time,” Gheit said.

Exxon’s results capped a week of big profits reported by most of the world’s largest oil companies. Thanks to a series of refinery fires, breakdowns and maintenance shutdowns, combined with low industry inventories of refined products, profit margins in the refining and marketing end of the business soared. Though U.S. refining output at Exxon dropped by 128,000 barrels a day, compared with the second quarter of 2006, refining and marketing profit jumped 37 percent. Refining and marketing profit also rose 42 percent at Royal Dutch Shell Group and 38 percent at ConocoPhillips Co.

The quarterly reports also showed signs that the industry faces spiraling costs and political problems getting access to oil prospects as existing fields gradually decline.

ConocoPhillips said Wednesday that it took a $4.5 billion write-off in the second quarter for Venezuelan operations taken over by the Caracas government. Exxon said that its output in West Africa was trimmed 9 percent because of quotas from the Organization of the Petroleum Exporting Countries. And Royal Dutch Shell, which gave in to pressure to sell half its stake in a Sakhalin Island oil project to Russia’s Gazprom last quarter, said that 195,000 barrels a day of its Niger delta oil production has been curtailed because of insurgent attacks.

This comes amid gradual declines in output from aging fields. For example, Conoco’s production for the quarter averaged 1.9 million barrels of oil equivalent per day, down from 2.1 million. The company blamed the decrease on normal field declines, planned maintenance in the North Sea and its decision to leave Dubai. Its exit from Venezuela will cut production further in the third quarter, the company said.

Companies are turning to new ways to keep production up. Royal Dutch Shell said that it managed to limit its production decline to 2.3 percent thanks to unconventional projects such as oil sands in Canada and a gas-to-liquids venture in Qatar.

Exxon said that it would explore for oil in Madagascar and New Zealand, not usually considered among the world’s best prospects. It also said yesterday that it had drilled the longest well ever, more than seven miles, to reach a subsea oil field on Russia’s Pacific coast.

Royal Dutch Shell Chairman Jeroen van der Veer yesterday would not rule out a natural gas development project in Iran, despite pressure from the U.S. government for European firms to help isolate the Tehran regime. He said that the company would “take political considerations into account,” but that it was still studying how to follow up on a tentative agreement it reached with Iran last year.

Gheit said that the big oil companies would have trouble matching the second-quarter results. He noted that in the past four weeks, profit margins at refineries had plunged about 50 percent. But production earnings should remain high thanks to high oil prices. The price of crude oil on the New York Mercantile Exchange neared an 11-month high before dropping to $74.95 a barrel yesterday.

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