Energy consumption slowed last year as the U.S. slipped into recession, mild weather cut demand for heating fuels and the Sept. 11 terrorist attacks discouraged travel. Exxon Mobil produced less oil and gas, and profits on fuel refining shrank.

Irving, TX-based Exxon Mobil's net income fell to $2.68 billion, or 39 cents a share, from a record $5.22 billion, or 75 cents, in the year-earlier quarter, spokesman Tom Cirigliano said. Revenue fell 26% to $47.3 billion from $64.1 billion.

Profit from oil and gas production declined 55% to $1.67 billion from the same period a year earlier, the company said. The average price of gas on the New York Mercantile Exchange plunged 59% last quarter, and oil dropped 36%.

Retail gasoline prices fell to a 2 1/2-year low last month, and continue to fall, according to the Dept. of Energy. The department's Energy Information Administration said the national average for a gallon of unleaded gasoline hit $1.105, while a gallon of diesel slipped to $1.14. Gasoline is down 36.6 cents from a year ago, and diesel 38.8 cents.

Exxon Mobil's refining profit fell 12% to $1.02 billion. The decline was less than an industry measure for refining profit margins, which fell 43% based on the cost of buying crude oil compared with the price of gasoline and heating oil.