The rising price of oil and gas boosted BP's profits in the second quarter, though the benefits were partially offset by lower production as a result of the oil spill in the Gulf of Mexico.The oil giant saw underlying profits of £3.2bn for the three month period, against a loss of £10.3bn for the same period last year. Benefits of the soaring oil price were tempered by BP's ignominious exit from the Gulf of Mexico following the oil rig disaster and subsequent leak there. Production of 3.43m barrels of oil equivalent a day was down by 11% from the same period the previous year "primarily reflecting the ongoing impacts to Gulf of Mexico production as a result of the suspension of drilling, and the continuing divestment programme."BP said it expects future cash flows generated by its operations around the world to grow faster than output, in both its production and refining businesses. "In February we said we expected 2011 to be a year of consolidation as we reset the focus of the company," chief executive Bob Dudley said. "This is going well, while it is having the expected near-term impact on our volumes and costs." BP, which earlier this month announced a series of measures to improve the safety and environmental performance of its operations in the Gulf of Mexico, said it expects its return to drilling in the area to contribute to future growth."We expect the momentum of our recovery to build into 2012 and 2013 as new projects come on stream, particularly in higher-margin areas; as we complete current turnaround activity; as we return to work in the Gulf of Mexico; and as uncertainties reduce," the company said.---RG