Industry Analysis & Industry Trends
Despite a dip during the recession, the industry has experienced overall growth in the past five years. Currently, industry firms are acquiring natural gas wells with the expectation that natural gas prices will rise to meet demand from electricity generators and other downstream customers. During the next five years, industry performance will gain ground in response to rising oil and gas prices and higher levels of output. Increases in oil and gas prices are projected to occur on the back of sustained global economic growth as emerging economies grow rapidly and developing countries expand... purchase to read more
Industry Report - Industry Investment Chapter
The Oil Drilling and Gas Extraction industry is highly capital intensive. In 2013, for every dollar spent on wages, the average industry firm will invest $7.58 in capital equipment. This ratio ranks this industry among the most capital intensive of all industries. Firms rely heavily on large-scale capital equipment, rather than labor, for output. In addition, the substantial capital cost of production facilities reflects the need for a high degree of reliability. Facilities operate constantly and must be resistant to corrosion. They must also be able to withstand extreme weather, both offshore and onshore... purchase to read more