Oil Company Profits
Recent Revenue and Income Growth
The increase in world oil prices that began in 2004 and continued into 2005 led to increasing revenues and net incomes for all sectors of the oil industry. In 2004 and continuing into 2005, increasing world demand, led by China, India, and the United States, created a tight market in both oil production and refining at a time where spare capacity was already at historically low levels. In addition, in 2004 and 2005, world political events, including the war in Iraq, political unrest in Nigeria, and the political climate in Venezuela, contributed to a market psychology that pushed up prices….
