Thursday, June 24, 2010

First Quarter Producer Earnings Increase While Refining Remains Weak


clipped from www.eia.doe.gov

During the first quarter of 2010 (Q110), earnings of oil and natural gas producers increased significantly above the levels seen a year earlier, when oil prices were at their low point for the last several years. However, earnings of refiner/marketers and oil field companies (oil field companies provide drilling and other services to producers) fell sharply in Q110 compared to year earlier levels. These results are drawn from quarterly EIA reporting on the financial performance of energy companies (see the (see the Financial News for Major Energy Companies, First Quarter 2010 and the Financial News for Independent Energy Companies, First Quarter 2010) that together represent about half of U.S. oil and natural gas production and nearly two-thirds of U.S. refining capacity.

Figure 1: Producers' earnings rise while refiners' earnings are negative
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