US energy industry financial developments, 1993 third quarter

Technical Report · Wed Dec 01 04:00:00 EST 1993

DOI:https://doi.org/10.2172/10112342· OSTI ID:10112342

Based on information provided in 1993 third quarter financial disclosures, the average net income for 112 petroleum companies -- including 18 majors -- rose 13 percent between the third quarter of 1992 and the third quarter of 1993. The gain in overall petroleum income was derived from increases in refined product consumption and margins, which improved the profitability of downstream petroleum (refining, marketing and transport) operations. A 17-percent decline in crude oil prices led to reduced income for upstream (oil and gas exploration, development and production) operations. A 16-percent rise in natural gas wellhead prices only partially offset the negative effects of low crude oil prices. Electric utilities also reported improved financial results for the third quarter of 1993 as hotter summer temperatures relative to the year-earlier quarter helped boost air conditioning demand and overall electricity usage. The following points highlight third-quarter energy industry financial developments: (1) Refined product demand and margins lift downstream earnings. Petroleum product consumption rose 2 percent between the third quarter of 1992 and the third quarter of 1993. Although petroleum product prices declined in the most recent reporting period, they did not decline as much as crude oil input prices. As a consequence, refined product margins widened. (2) Lower crude oil prices reduce upstream earnings. Crude oil prices fell 17 percent between the third quarter of 1992 and the third quarter of 1993 leading to a substantial reduction in income for the major petroleum companies` upstream operations. (3) Drilling income rises with increased North American exploratory activity.

• Research Organization: USDOE Energy Information Administration, Washington, DC (United States). Office of Energy Markets and End Use
• Sponsoring Organization: USDOE, Washington, DC (United States)
• OSTI ID: 10112342
• Report Number(s): DOE/EIA--0543(93/3Q); ON: DE94004816
• Country of Publication: United States
• Language: English

Related Subjects

01 COAL, LIGNITE, AND PEAT
015000
02 PETROLEUM
020700
03 NATURAL GAS
030600
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200
294000
296000
298000
COAL INDUSTRY
CONSUMPTION AND UTILIZATION
ECONOMIC DEVELOPMENT
ECONOMIC, INDUSTRIAL, AND BUSINESS ASPECTS
ECONOMICS AND SOCIOLOGY
ELECTRIC POWER
ELECTRIC UTILITIES
ENERGY CONSUMPTION
FINANCIAL DATA
FOSSIL FUELS
GROSS DOMESTIC PRODUCT
NATURAL GAS INDUSTRY
PERFORMANCE
PETROLEUM INDUSTRY
PRICES
RESOURCE DEVELOPMENT