Page 2 - GULF OIL CORPORATION ANNUAL REPORT DECEMBER 31, 1946

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GULF OIL CORPORATION

April 25, 1947

The Gulf Companies during 1946 had the most active year in their
history.

Record sales both in volume and dollars were handled. Moderate
price advances in the industry took place in the latter half of the year.
As a result Of the unusual demand for almost all petroleum products and
the higher prices for them, Gulf Oil Corporation had the largest net
earnings in its history, despite sharp incI'eases in labor and material costs.

How long present demand and price levels of petroleum products
will continue none can foretell. The immediate outlook, however, appears
favoral;le.
Increasingly large capital investments are needed in all branches
of the petroleum industry-in production, refining, transportation and
marketing. Substantial capital requirements mean heavy fixed overhead
charges. More people, more crude oil and products and more plants were
needed to handle the record business. All this cost more than in 1945.
At the year-end Gulf employees totaled 39,777, an increase of 5,896
over 1945. Meanwhile, total wages and salaries paid increased 24%.
To provide the jobs for these employees, there has been invested a total of
over one billion dollars in oil properties, pipe lines, refineries, vessels,
terminals, bulk and service stations and other facilities. During 1946 alone,
Gulf spent $97,000,000 for necessal`y additions to such plant and equipment.

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