An investigation into the relationship of retail gas prices on oil company profitability
In this article, we present several empirical procedures using publicly available data from the US Department of Energy (DOE), and the Securities and Exchange Commission (SEC) to examine the relationship of oil company gross profit margins to retail gas prices. This descriptive analysis indicates that the profit margins of the major integrated oil companies are lower, on average, during periods of extremely high gas and oil prices (and, in fact, are even lower than in times of extremely low gas and oil prices). Large oil companies are most profitable during periods of moderate gasoline prices. Smaller, vertically integrated oil companies and firms, primarily in the business of refining purchased crude oil, exhibit a consistently inverse relationship between profit margins and retail gas prices - as gas prices increase, these firms become less profitable. We find no evidence for the increase in the gross profit margins of oil companies during episodes of very high retail gasoline prices.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 43 (2011)
Issue (Month): 27 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4033-4041. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.