The energy company concept is a relatively recent development in the primary fuels sector of the economy. An energy company can be defined as a firm with substantial reserve and/or production positions in the various primary fuels areas. Generally, energy companies have resulted from the expansion of oil firms into other fuels. Entry has been accomplished by a variety of ways, including: (1) acquiring fuel reserves; (2) acquiring production facilities; (3) de novo entry into production and/or reserve ownership; and (4) the use of joint venture arrangements.

As a result of this type of expansion, most of the large oil companies in the United States have been transformed into energy companies. The extent of this development is indicated by the evidence presented below in Table 1-1. The evidence indicates the fuels in which each of the 25 largest oil firms have established a position. In addition to coal and uranium, Table 1-1 also indicates the companies with interests in oil shale and tar sands. With current crude oil prices in the $9-10 per barrel range, shale and tar sand production appears to be profitable. The Colony Development group was ready to begin production from shale when mid-continent oil was priced at $3.50-4.00 per barrel. In addition, during January, February, and March 1974, three different groups bid very large sums of money to begin oil production from shale. Oil company activity in other fuels is indicated in Table 1-1. Among the 25 largest oil companies, 18 are involved in oil shale, 11 in coal, 18 in uranium, and 7 in tar sands. These findings, based on a search of trade journals, annual reports, and Moody's Industrials, are subject to some error. However, they are substantiated by the results of a survey conducted by Continental Oil. The results are summarized in Table 1-2.