Oil and gas stocks perform well for pensions

According to a new study from Sonecon, returns on state pension funds from investments in oil and natural gas companies continue to provide strong earnings for public pension retirees, including America’s teachers, fire fighters and police officers. On average, US$1 invested in oil and natural gas stocks in 2005 was worth US$2.30 in 2013. In contrast, US$1 invested in all other assets over the same period was worth US$1.68.

API VP of Regulatory and Economic Policy Kyle Isakower said, “during good economic times, or challenging ones, oil and natural gas investments far outperformed other public pension holdings. We already know that a healthy domestic oil and natural gas industry is good news for jobs and government revenue, and we now know that it also provides stability to the nest eggs that millions of Americans are counting on for a secure retirement.”

Oil and natural gas stocks make up on average, 4% of holdings in the top public pension funds, but they accounted for, on average, 8% of the returns in these funds from 2005 – 2013. The owners of America’s oil and natural gas companies are largely retirees and middle class Americans saving for retirement, and this is according to a separate Sonecon study.

Isakower continued, “millions of Americans with a 401k, mutual fund, or pension also rely on the income and capital growth these companies provide for their retirement.” America’s oil and natural gas companies are owned by tens of millions of Americans.

The report

The report examines the top two public pension funds in 17 states, which collectively cover 55% of all workers in the US who participate in state and local government pension plans.

Edited from press release by Claira Lloyd

Published on 29/04/2015

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