[COMMITTEE PRINT] ENERGY TAXATION: STATISTICAL DATA Study No. 2 Prepared for the Use of the COMMITTEE ON WAYS AND MEANS BY THE STAFF OF THE JOINT COMMITTEE ON INTERNAL REVENUE TAXATION FEBRUARY 19, 1974 U.S. GOVERNMENT PRINTING OFFICE 28-619 WASHINGTON : 1974 JCS-3-74 TABLE OF CONTENTS List of Tables a. petroleum statistics on demand, production and reserves Table number Page 1. World demand for commercial energy 3 2. World crude oil reserves 3 3. AVorld crude oil production 4 4. Supply and demand for all oils in the United States 5 5. Estimated consumption and imports of petroleum by major area, 1973_ 6 6. Significance of U.S. petroleum imports I 7 B. STATISTICS ON PETROLEUM INDUSTRY INVESTMENTS 7. Petroleum industrj^ investments as of December 31, 1971 11 8. Capital expenditures by American companies in 1971 12 9. Gross investment of American companies as of j^earend 1971 12 10. Net investment of American companies as of yearend 1971 13 11. Oil wells drilled 14 12. Drilling operations, by type of well 14 13. Producing oil wells in the United States 14 14. New field discoveries 14 15. Volumetric statistics, 1971 15 16. Tanker facilities, world—as of }'earend 1971 15 17. Exploration and development expenditures in the United States, 1971- 15 18. Investment plans of major petroleum companies: increase in 1974 over estimated 1973 expenditures 16 C. INCOME AND FOREIGN TAX CREDIT STATISTICS 19. Net income after tax and the rate of return on equity of selected oil companies (1963-73) 19 20. Capital expenditures, net income, and rates of return 21 21. Net income as percent of net worth: Petroleum and other selected industry groups, 1963-72 21 22. Net income after taxes: Petroleum versus total manufacturing, 19()3- 72 22 23. After-tax profits of leading corporations for the 4th quarter, 1973 22 24. Rank in profitability of oil companies among 843 leading corporations surveyed by Forbes magazine 23 25. Estimated profit increases in 1974 that would result from price in- creases "^ 20. Petroleum industry income subject to tax, U.S. tax liability before credits, foreign tax credit claimed and U.S. tax liability after credits, 1963-71 tax years 24 D. REVENUE ESTIMATES AND SUPPORTING DATA 27. Revenue gains from alternative proposals to tax excess profits from oil . 27 28. Estimated prices and output of crude oil, 1973-78 28 List of Charts expenditures, Chart 1. U.S. petroleum exploration and development 1959_71 29 companies Chart 2. Percent of U.S. production by medium and small m 1971 «»" Chart 3. Exploration-development expenditures 30 vs. combmed Chart 4. U.S. exploration and development expenditures price of oil and gas 1-4, fi, 7 and U-U: Injernational Eoononiic Source of laWes- Standard & Poor's Industrial Survey-Tables Prontability, data eompi led by the statT of he Pena e R.port of he Preside 1974-Table o: Oil Compaay Capital Invesinients of the AVorld FiiaucVcommttT Tables 17-19, 21-24; the Chase Manhattan Bank, Joint Coraniitlee on Internal Revenue Taxation, PetrolounVlZJstry 1971, Tables 8-10, and 15-17; Staff, Tal)les 2o-28. (ra) PRODUCTION, k. PETROLEUM STATISTICS ON DEMAND, AND RESERVES (1) I ( I I TABLE 1.- TABLE 3.—WORLD CRUDE OIL PRODUCTION [In thousands of barrels per day] North America 11,324 ii,212 United States! 9, 537 9 463 Canada 1 200 1,323 Mexico 487 '427 South America .._ _... 4500 4 486 Argentina '393 '423 Pi^a^i'v.-- -— 164 172 Columbia .. 200 204 Venezuela 3 708 3549 Western Europe 325 '296 West Germany 151 148 Africa 1.[^\[\" 6,050 5,788 Algeria . 1_022 794 Egypt 327 294 Gabon. 109 115 Libya > 001 o 7(-i Middle East :.:::::::::::::::::::::::::::::::::::::::: lioi) leisse ,3f tast... g37 Oceania 1 220 1,394 Total world 37,856 40,483 1 Including Alaska and Hawaii. Source: World Oil. 1-:> 00 I c;, r,.... -I it -;) TABLE 4.- SUPPLY AND DEMAND FOR ALL OILS (In thousands of barrels) Natural Domestic gasoline Ref;ned Changes Domestic Domestic Domestic All other crude oil and benzol Crude oil products in all crude di reet gasoline demand, all domestic Crude oil All other Total Year production production imports imports stocks dem and demand fuel oils 1 demand exports exports 2 consumption 197L ______ _ 3,459,052 632,879 811,135 924,121 -84,968 10,907 2,350,405 1, 991,696 1,643,512 187 81 , 281 6, 071,722 197L _______ 3,453,914 617,815 613,417 319,463 +26,086 10,551 2,213,163 1,809,361 1,530,031 503 81,342 5,638,853 ~., 197L ___ ~ ___ 3,517,450 605,916 483,293 764,769 + 37,738 9,388 2,131 , 252 1,731,499 1, 501,722 4, 991 89,467 5,463,259 1969 _________ 3,37 t, 751 580,241 514, 114 641,437 -17, 449 9, 229 2,042, 546 1,622,186 1,495, 198 1,436 83,449 5,249,056 1908 _____ ____ 3,329,042 553,688 472,323 557,046 +55,451 9,118 1,956, 000 1,542,778 1,393, 027 1,802 82,742 4, 990,467 1967 _________ 3,215,742 514,455 411,649 514,342 +63,006 7,677 1,842,686 1,470,035 1, 160,812 326,541 85,519 4,593,270 196L ______ _ 3,027,763 468,635 447,120 492, 042 + 38,121 8,111 1,793,381 1,423,810 1,099,767 1,477 70,923 4,397,469 196L _____ __ 2,848,514 441,556 452,040 448,732 -2,891 8, 383 1,750, 028 1,362,825 1,004,222 1,097 67,191 . 4,193,746 19j4 _________ 2,786,822 422,500 438,643 388, 093 +3, 676 8,077 1,685,457 1,305,005 959, %4 1,363 72,516 4,032,382 1963 _________ 2,752,723 400,966 412,660 362,053 + 1,2ti3 7,683 1,632, 103 1,280, 178 925,261 1,698 74,216 3,927,139 1 I ncludin g fuel oil laden on vessels in foreign trade. 3 Reflects Middle East crisis. 2 I ncluding exports of benzol as such. Sources: Bureau of Mines, AmNica n Petroleum Institute. TABLE 5.-ESTIMATED CONSUMPTION AND IMPORTS OF PETROLEUM BY MAJOR AREA 1- 1973 [I n thousand barrels per day and percent of consumption) Origin of imports Arab countries Total con- Total Total Saudi Abu Other Vene- Indo- sum ption imports Arab Arabia Kuwait Libya Iraq Dhabi Algeria Arab Iran zuela nesia Canada Nigeria Other s TotaL __________ 58, 000 33,000 17,850 7, 500 3,000 2,100 1,800 1, 300 1,000 1,150 5,600 3,100 1,200 1,100 1,900 2,250 PercenL ___ 100 56.9 30.8 12.9 5.2 3.6 3.1 2.2 1.7 2.0 9.7 5.3 2.1 1.9 3.3 3.9 United StateL _______ _ 17,300 6,200 1,590 590 160 350 50 160 140 140 420 1,840 250 1,100 550 450 Percen L.________ _· 100 35.8 9.2 3.4 0.9 3.0 0.3 0.9 0.8 0.8 2.4 10.6 1.4 6.4 3.2 2.6 ~ Western Europe ______ _ 15,400 15, 200 10,600 4,000 1,750 1, 590 1,220 600 670 770 1,900 440 (2) __________ 1,130 1,130 PercenL _________ 100 98.7 68.8 26.0 11.4 10.3 7.9 3.9 4.4 5.0 12.3 2.9 (2) ---------- 7.3 7.3 J a pa n ________________ 5,400 5, 400 2,390 1,240 540 20 (2) 430 __________ 160 1,730 10 840 _____ _____ 100 330 PercenL _________ 100 100 44.3 23.0 10.0 0.4 (2) 8.0 ____ ______ 3.0 32.0 0.2 15.6 _______ ___ 1.9 6.1 Canada ___________ ____ 1,800 1,000 220 80 (2) 40 20 60 _________ _ 20 180 470 (2) _______ ___ 80 50 PercenL ___ ______ 100 55.6 12.2 4.4 (2) 2.2 1.1 3.3 __________ 1.1 10.0 26.1 (2) _________ _ 4.4 2.8 Communist areL _____ 9,100 500 400 __________________ __ 100 200 (2) 50 50 100 __________________________________________________ PercenL _______ __ 100 5.5 4.4 ___________________ _ 1.1 2.2 (2) 0.5 0.5 1. 1 __________________________________________________ OtherL ____________ _ 9, 000 4,700 2,650 1,590 550 ( 2) 310 50 140 10 1,270 340 110 __________ 40 290 PercenL ________ _ 100 52.2 29.4 17.7 6.1 (2) 3.4 0.6 1.6 0.1 14.1 3.8 1. 2 ____ ____ __ 0.4 3.2 I This table allocates imports on a direct and indirect basis-Le., refined products from export Source: International Economic Report of the President, transmitted to the Congress February 1974, refineries are traced to the source of the crude oil. p. 107. 2 Negligible. TABLE 6—SIGNIFICANCE OF U.S. IMPORTS [In thousands of barrels per day] Imports of Imports refined Total Domestic products imports product Refined as percent of as percent of demand Crude products Total demand demand Year: 1972. 16, 354 1971, 1970. 1969- 1968. 1967. 1966. 1965. 1964. 1963. B. STATISTICS ON PETKOLEUM INDUSTEY INVESTMENTS CJ) TABLE 7.-PETR0LEUiVl INDUSTRY INVESTIVIENTS [In properties, plant and equipment.