Page 6 - GULF OIL CORPORATION ANNUAL REPORT DECEMBER 31, 1946

Gross inveshaent in properties, plant, and equipment at the close of
the year was carried on the bocks at cost value of Sl,072,600,000. The net
value Of such invesinents (after allowing for depreciation and depletion
reserves) was $482,400,000 or 45% Of cost. The summarized plant in-
vestment, divided according to departments, along with current actual
additions to plant, i§ shown on page 25.
Additional related fixed assets, representing chiefly invesinents in
subsidiary and affiliated companies not consolidated, tngether with certain
security investments and intangible assets, totaled $44,600,000 (net).

TAXES
Taxes levied on the Company and its sales to customers last year
totaled S154,500,000. As summarized on page 22, this was equal to S17.02
a share on the capital stock outstanding.
Direct sales and other excise taxes included above were S120,loo,000.
These taxes were collected by Gulf for various governmantal taxing au-
thorities. They are, therefore, excluded from the income statement as in
former years.

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New crude oil production records were established for hath do-
mestic and foreign operations, with gross production of 149,600,OcO
barrels and net production Of 126,200,000 barrels, as detailed on page 19.
The increase in Venezuela crude oil production accounted for most Of the
gain. Production Of Kuwait crude oil is not included in the above figures
as the Company's 50% interest in Kuwait Oil Cc)mpany, Ltd., is not con-
solidated in this Report.
Ifomestic production last yeal., as in 1945, cane from fields in Arkansas,
California, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan,
Mississippi, New Mexico, Oklahoma and Texas.

DR]|L!NG
Gulf in 1947 plans substantial expansion Of both development and
exploration drilling to insure its full participation in the future development
of the industry.
Fewer wells were completed in 1946 than during 1945, as the result of
scarcity of needed equipment and material, and delays in transportation.

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