Re: Oil profits: rent?


Dan in Philly wrote:
> I almost hate to ask this in this group - could lead to a lot of
> monologues - but maybe someone knows the answer:

> Oil companies have made big profits lately. How much of that is due to their
> owning oil wells? (as opposed to profits from refining, transporting, etc).

> Citations would be appreciated; I googled but couldn't find anything. TIA.

The Yahoo Industry Browser has the following information on return on
equity

Independent Oil & Gas - 23.80
Oil & Gas Drilling & Exploration - 18.30
Oil & Gas Equipment & Services - 16.40
Oil & Gas Pipelines - 11.70
Oil & Gas Refining & Marketing - 30.90

Looking at Valero with a 30% ROE, I think that refining is the most
profitable part of the energy business now.

--
Ron

.

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