Profit margins provide one useful way to compare financial performance among industries of all sizes.
Oil and natural gas earnings are typically in line with the
average of other major U.S. manufacturing industries,
but not recently.
Published data for 2011 to 2015
shows the oil and natural gas industry lost on average
3.9 cent for every dollar of sales in comparison with all
manufacturing which earned on average 8.7 cents for
every dollar of sales.
Growth in the world’s supply of crude oil has outpaced
the growth in global demand, which has led to sharply
lower prices, and lower earnings.