Earnings in Perspective
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In recent years, much media and political attention has focused on oil and natural gas industry earnings. But the oil and natural gas industry, like other commodity businesses, is highly cyclical, and the industry’s earnings make possible the huge investments that help ensure America’s energy security.

Typically, oil and natural gas earnings are in line with the average of other major U.S. manufacturing industries. This fact is not well-understood, however, in part because reports usually focus on only half the story—the profits earned.

Additionally, U.S. oil and natural gas companies actually pay considerably more in income taxes than other firms. In 2009, for example, the oil and natural gas industry’s effective tax rate averaged 48.4 percent, as compared to 28.1 percent for other S&P Industrials.

The oil and natural gas industry needs healthy earnings to remain competitive and to benefit its shareholders, most of whom are Americans who own industry stocks in their 401K plans, pensions, IRAs and mutual funds. Healthy earnings also allow the industry to invest in energy development and production as well as innovative technologies that protect the environment. 

API has assembled a primer that addresses these issues. View the full primer to learn more about industry earnings.

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Access to Oil and Gas: Jobs, Revenues, More Energy

Domestic oil and natural gas resources help ensure our energy and economic security by providing affordable, reliable energy to Americans nationwide. Access to these resources supports more than 9.2 million jobs nationwide, provides billions in government revenues and creates less reliance on foreign imports. Public policy supporting the jobs and energy sources provided by the oil and natural gas industry is essential to protecting our nation’s future energy security.  

Oil Spill Prevention and Response

The oil and natural gas industry has pledged to work day and night to aid in recovery efforts for the Gulf of Mexico oil spill, and to ensure lasting solutions are put into place.

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