Is the oil business profitable?
Is the oil business profitable? Strong international results pushed Chevron's operating profit from oil and gas production to $5.1 billion, from just $235 million a year ago. Profits in U.S. refining and chemicals jumped more than six times from a year-ago on higher demand for chemicals and motor fuels. How does an oil company make money? If oil producers pump more oil than the market needs, it can cause crude prices to plunge, which eats into the profitability of E&Ps. Oil-field service companies, on the other hand, make money by providing services and equipment to E&P companies. How much does...