A Note on Oil Company Earnings
U.S. oil and natural gas company earnings help keep America going strong. In 2010, the industry delivered $476 billion in revenue to the U.S. economy -- equal to roughly 60 percent of the 2009 federal stimulus. It's a stimulus that didn't need an act of Congress and which, with the right policies, can be repeated over and over—helping to drive broader economic recovery.
Like other industries, the oil and natural gas industry strives to maintain a healthy earnings capability. It does so to remain competitive in the global marketplace and to benefit its millions of shareholders across the country and in all walks of life.
A few facts on oil and gas industry earnings:
Industry earnings are in line with other manufacturing companies.
Over the last five years, average earnings for the oil and natural gas industry have been well in line with the rest of the U.S. manufacturing industry, averaging about 7 cents for every dollar of sales.
U.S. oil and natural gas companies pay their fair share of taxes.
U.S. oil and natural gas companies pay considerably more in taxes than the average manufacturing company. In 2011, the industry's income tax expenses (as a share of net income before income taxes) averaged 40.6 percent, compared to 25.1 percent for other S&P Industrial companies.
Strong U.S. oil and natural gas industry earnings result in innovative and economy-boosting investments.
Healthy earnings allow the industry to invest and reinvest in innovative technologies that improve our environment, increase production and help provide a more secure tomorrow. The oil and natural gas industry has enormous investment needs and U.S. energy companies must continually invest in new energy projects in order to keep pace with global energy demand.
The oil and natural gas industry contributes billions of dollars to the U.S. economy through federal and state revenues, jobs and capital projects. This is all done while ensuring a reliable supply of energy for United States’ consumers and businesses, and enhancing our nation’s energy security. In fact, the oil and natural gas industry’s impact on the U.S. economy is significant, supporting nearly 9.2 million American jobs and 7.7 percent of all U.S. GDP, and delivering more than $86 million a day to the federal treasury.