In recent years, much media and political attention has focused on high oil and natural gas industry earnings. But the oil and natural gas industry, like other commodity businesses, is highly cyclical, and the industry’s earnings make possible the huge investments that help ensure America’s energy security.

Typically, oil and natural gas earnings are in line with the average of other major U.S. manufacturing industries. This fact is not well-understood, however, in part because reports usually focus on only half the story—the profits earned.

Like other industries, the oil and natural gas industry strives to maintain a healthy earnings capability. It does so to remain competitive and to benefit its millions of shareholders, across the country and in all walks of life. Healthy earnings also allow the industry to invest in innovative technologies that improve our environment and increase production to keep America going strong—even as it leads the search for newer technologies, and new sources of energy that will provide a more secure tomorrow.

API has assembled a primer that addresses these issues. View the full primer to learn more about industry earnings.