IC 8472 Changing Investment Patterns Of The U.S. Petroleum Industry, 1950-68

Domestic expenditures by the U.S. petroleum industry have exhibited distinctive shifts in emphasis over the past 20 years. From the end of World War II to 1955, expenditures for all phases of the industry expanded. Although over one-half of all expenditures were for production, the relative emphasis was changed after 1956-58 from production toward processing and marketing. The period 1967-69 marked the beginning of a return to emphasis on exploration and production. These trends in expenditure patterns are logical and rational when related to domestic and international economic conditions and to the widespread application of improved production technology. As the immense job of developing the oil resources of Alaska and other regions begins, the petroleum industry will continue to turn to external sources for working capital. Long-term debt will probably be the principal method of external financing through 1970, but a definite shift toward new common and preferred stocks will be made. Higher product prices may be sought by the petroleum industry, but the economics of crude-oil production, changes in the tax structure, and possible changes in the oil imports control program make the price structure of crude oil and crude-oil products unpredictable at the present time.