Monday, May 16, 2011

Big Oil Ain't Really the Enemy

Oil Industry Profit Margin Ranks #114 out 215

The table below shows industry rankings for net profit margin (profits / sales) of the top 114 industries out of 215 total industries during the most recent quarter, from Yahoo!Finance.  

The top five oil companies (Chevron, Shell, BP, ExxonMobil and ConocoPhillips) are part of the "Major Integrated Oil and Gas" industry, and the CEOs of the "Big Five" are appearing today before the Senate Committee on Finance, to get grilled about the "taxpayer subsidies" and "tax breaks" they receive, explain why they deserve to earn record "windfall" profits, and explain the role they play in higher oil and gas prices.  

As the table below shows, the Integrated Oil and Gas industry made an average profit of 6.2 cents per dollar of sales, which ranks #114 out of 215 industries by profit margin, and puts oil companies right in the middle of industries by profitability.  

If the Senate Finance Committee wants to investigate "excessive" or "windfall" profits, they might consider going after some of the other industries that have benefited from higher commodity prices and achieved much higher profit margins than oil (at 6.2%), like silver (44.7%), copper (24%),  gold (21%), and industrial metals (21%) and lumber (17.7%).   

RankIndustryNet Profit Margin
1Closed-End Fund - Equity81%
2Publishing - Periodicals51.7
4Closed-End Fund - Foreign38.3
5REIT - Diversified36
7Internet Information Providers23.8
8Application Software22.7
9Foreign Utilities20.5
10Industrial Metals and Minerals20.1
13Semiconductor - Broad Line19.2
14REIT - Healthcare Facilities19.1
15Lumber, Wood Production17.7
16Semiconductor - Integrated Circuits17.6
17Diversified Investments17.5
18Healthcare Information Services16.6
19Beverages - Brewers16.5
20Regional - Southwest Banks16.4
21Semiconductor- Memory Chips16.1
22Publishing - Books16.1
23Networking and Communication Devices15.7
24Drug Manufacturers - Major15.4
25Long Distance Carriers15.2
27Beverages - Wineries and Distillers14.9
28Nonmetallic Mineral Mining14.6
29Beverages - Soft Drinks14.3
30Wireless Communications14.1
31Semiconductor Equipment and Materials14.1
32Personal Products13.9
33Personal Computers13.9
34Medical Instruments and Supplies13.9
35Drug Manufacturers - Other13.6
36Security Software and Services13.2
37Property and Casualty Insurance13.2
38Agricultural Chemicals13
39Specialty Chemicals12.7
40REIT - Residential12.7
42Medical Appliances & Equipment12.6
43Technical and System Software12.5
44Mortgage Investment12.5
45Entertainment - Diversified12.5
46Air Services, Other12.4
47Diversified Electronics11.9
48Processed and Packaged Goods11.5
49Foreign Regional Banks11.5
50Water Utilities10.9
51Semiconductor - Specialized10.5
52Money Center Banks10.5
53Consumer Services10.5
54Broadcasting - TV10.5
55Regional - Midwest Banks10.4
56Toys and Games10.1
57Textile - Apparel Footwear 10.1
59Investment Brokerage - National10
60Oil and Gas Drilling and Exploration9.9
61Paper and Paper Products9.8
62Foreign Money Center Banks9.8
63Regional - Northeast Banks9.7
64Business Software and Services9.7
66Scientific and Technical Instruments9.5
67Data Storage Devices9.5
68Internet Software and Services9.4
69CATV Systems9.3
70Specialty Eateries9.2
71Telecom Services - Domestic9.1
72Specialized Health Services9
73Diversified Computer Systems9
74Savings and Loans8.9
75Internet Service Providers8.9
77Research Services8.7
78Diversified Machinery8.7
79Education and Training Services8.4
80Independent Oil and Gas8.3
81Industrial Equipment and Components8.2
82General Entertainment8.2
83Diversified Utilities8.1
84Asset Management8.1
85Accident and Health Insurance8.1
86Information and Delivery Services8
87Gas Utilities8
88Business Services8
89Telecom Services - Foreign7.9
90Oil  and Gas Equipment and Services7.9
91Insurance Brokers7.8
92Cleaning Products7.8
93Steel and  Iron7.7
94Drug Related Products7.7
95Home Furnishing Stores7.6
96Diagnostic Substances7.6
97Auto Parts Stores7.3
98Industrial Electrical Equipment7.2
99Waste Management7
101Aerospace/Defense - Major Diversified7
102Publishing - Newspapers6.9
103Jewelry Stores6.9
104Home Health Care6.9
105Computer Based Systems6.9
106Pollution & Treatment Controls6.8
108Communication Equipment6.7
109Aerospace/Defense Products & Services6.6
110Sporting Activities6.5
111Packaging & Containers6.5
112Catalog & Mail Order Houses6.5
113Drugs - Generic6.3
114Major Integrated Oil and Gas6.2

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