Gas prices have been sky-high this year and are likely going higher. And though that's meant big profits for Canada's biggest oil companies, most Canadians have been reaping rewards too.

Shell Canada earned record profits in the first quarter, with earnings hitting $368 million. That's up 73 per cent from a year ago. Another petroleum giant, Imperial Oil, posted quarterly profits of more than $509 million.

"It was a record year on several fronts, including financial performance," says the CEO of Imperial Oil, Tim Hearn.

As the oil companies rake in the revenue, drivers have had to dip ever deeper into their wallets, as gas prices reach record highs. The national average for gas prices at the beginning of the year was 69 cents a litre. It's been on a steady trend upwards, with the national average now at about 77 cents.

High crude oil prices are being blamed for the rise. Crude prices, which accounts for at least one-third of gasoline's cost, have risen in recent weeks due to tight global supplies of crude oil.

But it's not just the fat cats in corporate boardrooms who have benefited. Millions of Canadian investors have benefited too, with those who chose to hold oil and gas shares in their portfolios enjoying great returns on their investments.

"Definitely, it's done very well. It's been a very positive thing for us," says Husky Energy shareholder Frank Wong

And it's not even just savvy shareholders taking a share of the earnings. Most company pension plans invest in the sector, as does the Canada Pension Plan, and hundreds of Canadian mutual funds.

"Most Canadians who have any sort of investment will have an oil exposure in there. They just don't realize it," says Altamira fund manager Craig Porter, whose resources fund is up 58 per cent this year.

"It's been a great sector to be in, not only for the producers, but the service companies as well, the companies doing the drilling."

There's also a social benefit to high pump prices. Higher energy prices force consumers to conserve and make investments in alternative and environmentally friendly energy sources.

Oil prices are expected to go higher still later this year and remain high through 2005. And that means more pain for consumers at the pump, more profits for oil companies, and some healthy returns on investment and pension portfolios for millions of Canadians.

Based on a report by CTV's David Akin