Recovery seen in energy markets?

WASHINGTON, Aug. 3 (UPI) -- Declining demand during the economic recession dragged on profits for energy majors from French giant Total to U.S.-based Chevron, but optimism lingers.

Chevron, the second-largest oil company in the United States, posted a 71 percent drop in net income for the second quarter of 2009 on Friday, bringing an end to a rough week for energy companies, the Financial Times reports.

The earnings report for Chevron was worse than expected, though the company had some reason for optimism with a 5 percent increase in oil and gas production.

French supermajor Total followed suit Friday with a reported decline of 54 percent in second-quarter profits to $2.4 billion. Total, however, witnessed a 7 percent decline in oil production, though a portion of that was due to quota reductions from the Organization of Petroleum Exporting Countries.

U.S.-based ConocoPhillips, meanwhile, said its exploration portfolio for natural gas may usher in a rebound as prices recover along with the global economy while consumers move to cleaner fuel sources.

The announcement follows a 76 percent decline in second-quarter profits for ConocoPhillips, the worst of the so-called big three U.S. oil companies that includes Exxon Mobil and Chevron.

Despite the dismal reports, however, analysts expect energy prices to recover along with the global economy, creating some optimism for the second half of the year.