US energy industry financial developments, 1993 first quarter

Net income for 259 energy companies-- including, 20 major US petroleum companies-- rose 38 percent between the first quarter of 1992 and the first quarter of 1993. An increased level of economic activity, along with colder weather, helped lift the demand for natural gas. crude oil, coal, and electricity. The sharp rise in the domestic price of natural gas at the wellhead relative to the year-ago quarter was the most significant development in US energy during the first quarter. As a consequence of higher natural gas prices, the upstream segment of the petroleum industry reported large gains in income, while downstream income rose due to higher refined product demand. Increased economic activity and higher weather-related natural gas demand also led to improvements in income for the rate-regulated energy segment. However, declining domestic oil production continued to restrain upstream petroleum industry earnings growth, despite a moderate rise in crude oil prices.