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

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The industry exhibited a volatile performance over the past five years, with revenue trending in line with large spikes and steep declines in oil prices over the period, largely driven by the global economic slowdown and subsequent recovery; although tensions in the middle east and increasing difficulty in the extraction process threaten to hinder growth over the next five years, greater economic activity in emerging companies will keep demand buoyant. For these reasons, industry research firm IBISWorld has added a report on the Global Oil & Gas Exploration & Production industry to its growing industry 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 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.

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 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 or call 1-800-330-3772.

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Gavin Smith
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