Skip to Main Content
Skip Nav Destination
GEOREF RECORD

The economic structure of the American petroleum industry

Joseph E. Pogue
The economic structure of the American petroleum industry
Bulletin of the American Association of Petroleum Geologists (February 1937) 21 (2): 149-196

Abstract

This paper presents an analysis of the economic forces that govern the functioning of the American petroleum industry, and outlines the changes that are taking place in their incidence. After a general introduction, the study deals with the five structural components of the industry-exploration, production, transportation, refining, and marketing-then takes up a number of special aspects of the business, and concludes with emphasis on the evolving aspects of the new structure introduced by the institutionalization of proration. The field of exploration is accorded rank as a separate economic function, coordinate in importance with production, and it is shown that sustained discovery is dependent upon multiple competitive effort despite revolutionary advances in the technique of search. Production, long dominated by the principle of capture, is described as undergoing fundamental modification under the impact of a control mechanism, itself in course of change. Proration is analyzed as a conservation measure and as a device for balancing supply and demand, tending to nullify the adverse effects of the rule of capture; with further developments to this end suggested. The specialized nature of transportation is described and its integrative aspects noted. The refining function is viewed with special regard to the powerful influence of changing technology. The field of distribution is examined as the terminal expression of economic pressures and an incipient schism of the retail function is noted. Throughout, the desideratum of equilibrium is emphasized and employed as a criterion in judging functional effectiveness. Finally it is pointed out that the oil business is the first great American industry to develop a new method of conducting its business. Its experiment with a new operating form has made some headway toward the practical solution of a complicated problem of unique character.


ISSN: 0883-9247
Serial Title: Bulletin of the American Association of Petroleum Geologists
Serial Volume: 21
Serial Issue: 2
Title: The economic structure of the American petroleum industry
Author(s): Pogue, Joseph E.
Pages: 149-196
Published: 193702
Text Language: English
Publisher: American Association of Petroleum Geologists, Tulsa, OK, United States
References: 19
Accession Number: 2020-011334
Categories: Economic geology, economics of energy sources
Document Type: Serial
Bibliographic Level: Analytic
Illustration Description: illus. incl. 4 tables, strat. cols.
Country of Publication: United States
Secondary Affiliation: GeoRef, Copyright 2020, American Geosciences Institute. Reference includes data from GeoScienceWorld, Alexandria, VA, United States. Reference includes data supplied by American Association of Petroleum Geologists, Tulsa, OK, United States
Update Code: 202009
Close Modal

or Create an Account

Close Modal
Close Modal