Global Oil & Gas Exploration & Production Industry Market Research Report from IBISWorld Has Been Updated

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The Global Oil and Gas Exploration and Production industry has experienced significant pitfalls due to increases in government regulation, price volatility regarding oil and gas prices and the global recession. For these reasons, industry research firm IBISWorld has updated a report on the Global Oil and Gas Exploration and Production industry to its growing report collection.

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Strong gains in recent years helped revenue increase overall for the five-year period.

The Global Oil and Gas Exploration and Production industry is expected to generate revenue of $4.5 trillion in 2013. This is up from $4.2 trillion in 2008, yielding an annualized growth rate of 1.3% in the five years to 2013. Revenue is expected to expand 3.0% in 2013 as oil and gas prices moderately contract, which represents a slowdown from extremely large gains during 2010 and 2011, when oil prices surged. Short-term spikes in the price of oil and gas have largely driven the industry's expansion over the period. However, industry performance did experience significant pitfalls, with an almost 40.0% drop in revenue during the global recession in 2009. Industry profit has also fluctuated according to oil and gas prices. Concentration in this industry is low. In 2013, the top-four companies are The Saudi Arabian Oil Company, the National Iranian Oil Company, PetroChina Company Limited, Exxon Mobil Corporation and Gazprom OAO. The industry is large and geographically diverse, making it difficult for even major oil companies to control more than a small proportion of global output each. Concentration is expected to increase in the five years to 2013.

According to IBISWorld Industry Analyst David Yang, “This is a highly regulated industry, with various tiers of government involved in all stages of production.” Governments determine which geographical areas of a country are open to oil exploration and extraction, issue exploration and production leases, and enforce environmental legislation. Environmental concerns associated with deep-sea oil and gas drilling came to the forefront in 2010 after the explosion of BP's Deepwater Horizon facility in the Gulf of Mexico. The US government's inquiry into the incident laid blame at the feet of both the industry and regulators in the United States. Consequently, regulation in the United States has been tightened, and firms involved in oil exploration and drilling also face more scrutiny in other jurisdictions, which raises operating costs through compliance monitoring and longer lead times.

Trade has become an increasingly important aspect of the industry over the past five years. About 57.0% of the oil produced in 2013 will be traded internationally, compared with nearly 32.0% of natural-gas output. Combined, the value of internationally traded oil and natural gas in 2013 is forecast to be $1.9 trillion. Output is dominated by Africa, the Middle East, Europe and North America. Over the next five years, “oil and gas consumption is expected to expand moderately as global economic growth continues,” says Yang. Although the Organization of the Petroleum Exporting Countries is expected to moderate production levels so that the world average oil price fluctuates around $100.0 per barrel, occasional shortfalls in output are expected to periodically cause prices to spike at higher levels.

For more information, visit IBISWorld’s Global Oil & Gas Exploration & Production industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry explore for, develop and operate oil and gas fields. This industry includes the production of crude petroleum, the mining and extraction of oil from oil shale and oil sands, the production of natural gas, sulfur recovery from natural gas and the recovery of hydrocarbon liquids. Transport, refining and marketing activities are excluded.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on nearly every US and Global industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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