• U.S.

Business: Record Year

1 minute read
TIME

For the U.S. oil industry, 1956 was a record year. Oil production and consumption climbed to new levels, yet fresh discoveries boosted the nation’s oil and gas known reserves to their highest point in history. Last week a flood of annual reports from the nation’s major oil producers showed that company earnings, too, reached record levels in 1956. Among top

U.S. oil firms reporting record earnings: ¶ Shell Oil Co.: $135,847,693 v. $125,531,950 in 1955.

¶51nclair Oil Corp.: $91,070,812 v. $80, 709,954.

¶Cities Service Co.: $62,151,985 v. $49,306,516.

¶5tandard Oil of California: $267,890,801 v. $231,138,655.

¶Gulf Oil Corp.: $282,658,087 v. $218,063,510.

Are such earnings higher than they should be? Said W. Alton Jones, chairman of Cities Service Co.: “Any fair appraisal will show that these earnings have been reasonable and, in fact, have been lower than those of many other major industries, including iron and steel, motor vehicles and equipment, and chemicals. Fair and reasonable industry earnings are necessary if the petroleum industry is to meet its large capital requirements.”

More Must-Reads from TIME

Contact us at letters@time.com