OGJ group earnings show big gain for 1993

Earnings for Oil and Gas Journal's group of 22 large US oil companies advanced sharply last year, increasing 70.9% from 1992. Group profits totaled $16.1 billion, with the gain stemming largely from lack of one time charges that depressed earnings in 1992. Adoption of new accounting rules associated with future postretirement costs caused the 1992 charges. US exploration and production earnings were mixed, tied in part to oil and gas production volumes. Higher gas prices and production helped boost earnings for a number of companies. But the earnings improvement from gas was offset by reduced oil production and prices. Results from non-U.S. E and P also were mixed. Average worldwide crude oil export prices were down from year earlier levels. However, for some companies this was offset by higher production levels and lower exploration costs. Earnings from refining and marketing were improved from 1992 levels, particularly for non-US operations. Lower feedstock costs, especially in the fourth quarter, helped boost earnings in this sector. Refining earnings gains also flowed from lower costs due to restructuring and an accompanying improvement in operating efficiency. The paper discusses world trends, operations and prices, US exploration and production, non-US E and P, US and non-US refining and marketing, petrochemicals, and the forecast for future demand