Oil companies see steady flow.

By Bonnie Pfister, San Antonio Express-News Knight Ridder/Tribune Business News

Feb. 13--Oil company executives are expecting handsome profits to continue into 2005, as crude oil fluctuates above $45 per barrel and demand for gasoline is expected to increase.

Energy stocks on the S&P 500 posted a 29 percent gain in 2004, outperforming all other sectors on the index.

Leading the pack was San Antonio's own Valero Energy Corp., which doubled its share price over the year. CEO Bill Greehey said he expects this year to be excellent.

"Where we're going to hit the home run this year is in the sour crude discounts," Greehey said.

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