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 – more than three times the amount it earned. To put that in perspective, that is almost enough money to fund the U.S. Department of Education for the next 10 years. 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. That average fell to 6.2 cents on the dollar for the oil and natural gas industry but rose to 8.3 cents on the dollar for all U.S. manufacturing by the fourth quarter of 2011 as the U.S. economy continued to recover.
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, 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 taxes, royalties, jobs and capital projects. This is all done while helping ensure continued supply of energy for United States’ consumers and businesses, and increased energy security. In fact, the oil and natural gas industry is one of the largest employers in the country, supporting nearly 9.2 million jobs, contributing 7.7 percent to GDP, and already contributing almost $86 million a day to the federal treasury.
To learn more about oil and gas company earnings, visit WhoOwnsBigOil.org.