Myth: "They" own the oil companies
To gain popular favor, many politicians, frequently joined by the media, assert that oil companies are vague and distant entities owned by "they" and it becomes "they" versus "you." The oil industry is a favorite whipping boy for politicians seeking to gain votes. Because the average citizen is not well informed on these matters, political rhetoric often reinforces prejudices against the oil industry rather than dealing in realities.
Reality:
Who does own the oil companies? During the 1979 oil crisis I was invited to address a luncheon meeting of a State Employees Association in the State Capitol. The topic was the oil crisis. The oil industry was being widely blamed. I asked who among the State employees owned any oil company stock. Not a hand was raised. However, just prior to the meeting I had been in the office of the Public Employees Retirement System which administered the pension plan for all State employees. I had examined the holdings of the fund and discovered that the largest single industry holding in terms of dollar value, was oil company securities. The fact was that everyone in the room owned oil company stock. The conventional myth is that large oil companies are owned by some vague group distinct from the general public, the "they." The reality is that "they" are us.
And this is very broadly true. Insurance and investment companies place the funds of their clients in a variety of investments among which traditionally have been oil companies. Through life insurance, and other insurance policies, annuities, and mutual funds, the major oil companies as well as the mining companies are owned by the general public.
A recent study of ownership of stocks in the six largest oil companies in the United States disclosed the following: nearly 200 mutual insurance companies hold close to 16 million shares. Ninety-one colleges own these stocks, and about 1,000 charities and educational foundations in the United States are holders of these oil company securities. In direct ownership more than 2.3 million Americans hold stock in these six companies.
Many other Americans own interests in smaller oil companies. As to who produces U.S. oil, it should be noted that currently in the United States, excepting the North Slope Alaskan oil which is a very high cost operation and requires a very large investment, more than half of the oil produced in the U.S. is produced by small independent producers. It is the oil produced abroad in such high cost areas as the North Sea, where major oil producers are dominant. This is inevitable as expense of operations in these areas runs into billions of dollars, and are much beyond the financial and risk taking abilities of small independent oilmen. And, as noted, these larger companies are owned directly, and through pension plans, annuities, and insurance policies, by millions of citizens.
Copyright 1997, Walter L. Youngquist -- Posted with permissionfrom GeoDestinies, by Walter Youngquist PhD & Chair Emeritus,Department of Geology, University of Oregon;National Book Company, 1997; ISBN 0894202995
Reality:
Who does own the oil companies? During the 1979 oil crisis I was invited to address a luncheon meeting of a State Employees Association in the State Capitol. The topic was the oil crisis. The oil industry was being widely blamed. I asked who among the State employees owned any oil company stock. Not a hand was raised. However, just prior to the meeting I had been in the office of the Public Employees Retirement System which administered the pension plan for all State employees. I had examined the holdings of the fund and discovered that the largest single industry holding in terms of dollar value, was oil company securities. The fact was that everyone in the room owned oil company stock. The conventional myth is that large oil companies are owned by some vague group distinct from the general public, the "they." The reality is that "they" are us.
And this is very broadly true. Insurance and investment companies place the funds of their clients in a variety of investments among which traditionally have been oil companies. Through life insurance, and other insurance policies, annuities, and mutual funds, the major oil companies as well as the mining companies are owned by the general public.
A recent study of ownership of stocks in the six largest oil companies in the United States disclosed the following: nearly 200 mutual insurance companies hold close to 16 million shares. Ninety-one colleges own these stocks, and about 1,000 charities and educational foundations in the United States are holders of these oil company securities. In direct ownership more than 2.3 million Americans hold stock in these six companies.
Many other Americans own interests in smaller oil companies. As to who produces U.S. oil, it should be noted that currently in the United States, excepting the North Slope Alaskan oil which is a very high cost operation and requires a very large investment, more than half of the oil produced in the U.S. is produced by small independent producers. It is the oil produced abroad in such high cost areas as the North Sea, where major oil producers are dominant. This is inevitable as expense of operations in these areas runs into billions of dollars, and are much beyond the financial and risk taking abilities of small independent oilmen. And, as noted, these larger companies are owned directly, and through pension plans, annuities, and insurance policies, by millions of citizens.
Copyright 1997, Walter L. Youngquist -- Posted with permissionfrom GeoDestinies, by Walter Youngquist PhD & Chair Emeritus,Department of Geology, University of Oregon;National Book Company, 1997; ISBN 0894202995
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