Los Angeles, CA (PRWEB) March 25, 2013
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 annualized growth of about 1.3%. Although revenue is expected to expand another 3.0% in 2013, this represents a slowdown from extremely large gains during 2010 and 2011, when oil prices surged. According to IBISWorld industry analyst Josh McBee, “Large spikes in the price of oil and gas have largely been behind the industry's expansion over the period.” Howeve, the the industry was not without its pitfalls; revenue dropped almost 40.0% during the global recession in 2009 due to plummeting oil prices.
The Global Oil and Gas Exporation and Production industry is highly regulated, with various tiers of government involved in all stages of production. Typically, 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 oil facility in the Gulf of Mexico and the resulting oil spill. The US government's inquiry into the incident laid blame at the feet of both the industry and regulators in the United States. “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,” says McBee. Although the industry’s geographical diversity makes it difficult for any one player to control a significant share of the global market, industry giants like Exxon Mobile and PetroChina have been increasing their market share through acquisition activity to better cope with unpredictable operating costs and conditions.
Trade has become an increasingly important aspect of the industry over the past five years. More than half of the oil produced in 2013 will be traded internationally, along with nearly one-third of natural-gas output. 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. 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 cause prices to spike at higher levels from time to time. In this climate, the industry's revenue is forecast to grow steadily through 2018. 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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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 every US 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 http://www.ibisworld.com or call 1-800-330-3772.