Note: Total U.S. mileage operated: Crude oil, 61,887; product, 56,096. Percentages may not add to 100.0 because of rounding.

Source: Interstate Commerce Commission, Bureau of Accounts, "Transport Statistics in the United States," Dec. 31, 1969, U.S. Government Printing Office, Washington, D.C. (1970), p. 6.

DISTRICTS 1 AND 3, AND DISTRICT 2

CRUDE OIL

Crude oil production statistics by company are not presently available for District 2; however, such statistics are available for the state of Texas, in District 3, which in 1971 accounted for 51.4 percent of crude oil production in the combined 1 and 3 districts. As can be seen in Table 7, the Top 4 and Top 8 firms accounted for an estimated 35.1 and 51.3 percent of crude oil production in Texas in 1971.

TABLE 7.-Market shares of leading firms in crude production, State of Texas (in barrels), 1971

Source: Firm data from: "Oil Directory and Production Survey, 1973," R. W. Byrams & Co., Austin, Tex. (Actual data given are September 1971 data multiplied by 12.) Total Texas crude production data from 'Mineral Industry Surveys, Crude Petroleum, Petroleum Products, and Natural Gas Liquids," December 1972, table 3, p. 7.

REFINING

As shown in Table 8, Top 4 concentration for 1970 in crude refining capacity in Districts 1 and 3 is 39.5 percent while Top 8 concentration is 64.5 percent. In gasoline sales, the top 4 firms control 41.2 percent of the market and the top 8 control 65.4 percent of the market. Independent refineries possess only 8.7 percent of crude oil capacity in District 1 and 18.7 percent of capacity in District 3. Market shares of independent gasoline retailers are also small: 15.5 percent in District 1 and 32.4 percent in District 3. Moreover, the market shares of the major oil companies have increased in both refining and gasoline sales during the past 20 years; and new entry into refining has been virtually non-existent.

In District 2, on the other hand, the Top 4 firms in 1970 accounted for 37.1 and 38.8 percent of crude and gasoline refinery capacity respectively, while the Top 8 firms accounted for 58.9 and 60.6 percent respectively (Table 9). Thus, concentration at the refinery level appears to be significantly lower in District 2

than in the combined 1 and 3 District. Moreover, in District 2, two companies, Ashland Oil and Marathon, both considered "independent", rank within the Top 8 firms and hence, are significant factors in the market.

TABLE 8.-Crude and gasoline refining capacity, districts 1 and 3, 1970

NOTE: Percentages may not add to 100.0 because of rounding.

Source: U.S. Department of Interior, Bureau of Mines, Mineral Industry Surveys, "Petroleum Refineries.... ,"table 2, pp. 4-12, Jan. 11, 1971.

TABLE 9.-Crude and gasoline refining capacity, district 2, 1970

Note: Percentages may not add to 100.0 because of rounding.

Source: U.S. Department of Interior, Bureau of Mines, Mineral Industry Surveys, "Petroleum Refin eries...," table 2, pp. 4-12, Jan. 11, 1971.

GASOLINE RETAILING

As indicated in Table 10, the Top 4 and 8 firms accounted for approximately 36.7 and 58.0 percent of gasoline barrel sales in 1971 and the combined 1 and 3 districts. In District 2, for 1970, the Top 4 and 8 firms accounted for 37.0 and 60.3 percent respectively (Table 11).

TABLE 10.—Market share of leading firms in retailing: 1971

Source: National Petroleum News Factbook Issue, 1972, pp. 118–131.

Firm:

TABLE 11.—Market share of leading firms in gasoline retailing: 1970

American

Shell

Gulf

Mobil

Техасо

Sun

Phillips

ARCO

Top 4...

Top 8-

Source: National Petroleum News Factbook Issue, 1971, pp. 128–133.

PIPELINES

15. 1

8.4

6.8

6.7

6.6

6. 1

5.3

5.3

37.0

60.3

Estimated concentration in crude oil pipelines for the combined 1 and 3 district for 1969 is provided in Table 12. The Top 4 and 8 firms accounted for an estimated 57.2 and 59.7 percent of barrel miles respectively. In terms of product pipelines in the combined 1 and 3 district (Table 13), the Top 4 and 8 firms accounted for an estimated 40.6 and 72.4 percent respectively.

TABLE 12.-Estimated concentration in crude oil pipelines in the combined 1 and 3 district 1969 (after percent of ownership)

Source: Oil and Gas Journal Crude Oil Pipeline Atlas, 1971 and Interstate Commerce Commission, Transport Statistics in the United States, pt 6, "Oil Pipe Lines," 1970.

TABLE 13. Estimated concentration in product pipelines in the combined 1 and 3 district, 1969 (after percent of ownership)

Source: Oil and Gas Journal Products Pipeline Atlas, 1970 and Interstate Commerce Commission, Transport Statistics in the United States, pt. 6, "Oil Pipe Lines," 1970.

DISTRICT 4 AND DISTRICT 5

CRUDE OIL

Crude oil statistics are not currently available on a company basis for District 4. However, such statistics are available for California, which, in 1970 accounted for over 80 percent of crude oil production in District 5. Together with other information available for District 5, it is possible to construct some rough estimates of concentration at the crude level.

As shown in Table 14, the Top 4 and Top 7 crude oil producers in 1970 accounted for 39.3 and 53.7 percent of California crude oil production. By including District 5 imports and receipts from other districts (Table 15), estimated Top 4 and Top 7 concentration increases to 41.9 and 59.1 percent respectively, (Table 16).

1 No information is available for companies ranked below the seven largest. Source: "Annual Review of California Oil and Gas Production," table 8, p. 3.

TABLE 15.-District 5 imports and receipts from other districts, 1970

Source: Annual Review of California Oil and Gas Production... table 15, p. 7 and table 16, p. 9.

TABLE 16.-District 5 crude oil production, 1970 1

1 Estimated by summing data contained in tables 14 and 15. Approximately 232,000 barrels of crude per day are produced in the other district 5 States. These barrels are not included in the market share figures. Thus, to the extent that these companies have approximated the same share of the other 232,000 barrels per day, these concentration figures would be reasonably accurate for the district as a whole.

REFINING

Gasoline and crude oil capacity data have been available for both District 4 and District 5 for 1960, 1964, 1967, and 1970. Total gasoline output for each District consists of the gasoline capacity of the refineries, foreign inputs, and receipts from other Districts.

Gasoline and crude oil capacity data are shown in Tables 17-21.

As shown in Tables 20-24, District 5 crude and gasoline capacity has consistently been higher than District 4 from 1960 through 1970. Although the capacity of refineries has steadily increased in both Districts, Top 4 and Top 8 concentration ratios have remained relatively stable.

District 5 has been dominated by the same seven majors since 1960. Their stable market share during the rapid expansion of the industry demonstrates their substantial degree of market power. Within this group of seven majors, Standard Oil of California has consistently owned a market share of 20 percent or more of industry output. District 4 has also been dominated by a few companies. Standard Oil (Ind.), Standard Oil (N.J.) and Continental Oil Company have had at least 30 percent of the market.