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The oil and natural gas industry is one of the world's largest industries. Its revenues are large, as are the costs of providing consumers with the energy they need. Among those costs are finding and producing oil and natural gas, refining, distributing and marketing those refined products. The energy Americans consume today is brought to us by investments made years or even decades ago. Today's oil and natural gas industry earnings are invested in new technology, new production and environment and product quality improvements to meet tomorrow's energy needs. The industry's earnings are very much in line with other industries, and often they are lower. See below for more information.
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It may surprise you to find out our industry’s earnings are typically in line with the average of other major U.S. manufacturing industries. From just who owns “big oil” to how we invest what we earn, we’ve prepared this short paper, based on well-documented data, to help you better understand the oil and natural gas industry’s earnings by putting them into perspective.
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Size: 820 KB | Date: September 18, 2009 | License: Free
Snapshot of Oil Industry Earnings: An API Fact Sheet
Oil and natural gas companies are not immune to the global recession and the first quarter financial results underscore that. During the first three months of 2009, oil and natural gas company earnings plunged nearly 70 percent as dramatically lower oil and natural gas prices, combined with low refinery margins, hammered the companies’ balance sheets. Demand for oil and natural gas is down and prices are sharply below year-ago levels. Despite the plunge in earnings, the industry is doing what it can to minimize laying off employees while striving to maintain the long-term investments needed to deliver American consumers the energy they need, vital to the nation’s economy and energy security.
Size: 1 M | Date: May 14, 2009 | License: Free
Investment and Other Uses of Cash Flow by the Oil Industry
Today's oil and natural gas industry earnings are invested in new technology, new production and environment and product quality improvements to meet tomorrow's energy needs. This new Ernst & Young study shows the five major oil companies had $765 billion of new investment between 1992 and 2006, compared to net income of $662 billion during the same period. The industry overall, which includes 57 of the largest U.S. oil and natural gas companies, had new investments of $1.25 trillion over the same period, compared to net income of $900 billion and cash flows of $1.77 trillion. High oil and gas prices in recent years increased oil and natural gas companies’ cash flows from operations and net income, which facilitated record levels of investment spending. Download the complete report below (Published May 2007) .
Size: 192 KB | Date: January 28, 2008 | License: Free
New study finds ownership of America’s oil and natural gas companies “broadly middle class”
WASHINGTON – Who owns ‘Big Oil?’ It’s not who you think. As Congress debates national energy policy, a new study finds that ownership of oil and natural gas company shares is made up of a broad cross section of Americans.
“This study disproves the popular misconception that ‘Big Oil’ is owned by a small group of industry insiders. In reality, across the oil and natural gas industry only 1.5 percent of shares of public companies are owned by company executives,” said study author Robert J. Shapiro, undersecretary of commerce for economic affairs under President Bill Clinton. “The data show that ownership of industry shares is broadly middle class, with the majority of industry shares held by institutional investors, often on behalf of millions of Americans through mutual funds, pension funds and individual retirement accounts.”
Size: 279 KB | Date: September 19, 2007 | License: Free
U.S. Oil and Gas Industry Investments in Emerging Energy Technologies
To help meet future U.S. energy demand growth and to diversify the U.S. energy portfolio, U.S. oil and gas companies invested an estimated $121.3 billion from 2000 through 2007 on emerging energy technologies in the North American market. This investment represents 65% of the estimated total of $188 billion spent by U.S. companies and the Federal government. View the Emerging Energy Technologies Research.