Industry Analysis & Industry Trends
The Oil and Gas Extraction industry has been challenged in recent months by a decline in oil prices. Although new drilling techniques have opened up previously uneconomical oil and gas deposits, price volatility is expected to cause an overall decrease in revenue over the period. Future industry performance is expected to increasingly hinge on improvements to drilling techniques; as operators deplete their reserves, it will be more important for them to improve efficiency and minimize waste. Over the next five years, an expected recovery of oil prices will drive a rapid rebound in industry revenue... purchase to read more
Industry Report - Starting a New Business Chapter
There are substantial barriers to entry to the Oil Drilling and Gas Extraction industry. These include the high-risk nature of oil and gas exploration and development, the difficulty in locating economically viable deposits and the large amounts of capital companies require bringing fields into production. In addition, many of the major oil and gas producers are vertically integrated companies, with interests in downstream operations, such as petroleum refining and marketing. New entrants lacking such linkages may find it difficult to penetrate the market.
While the existence of large international oil companies in the industry is undoubtedly a significant deterrent to market entry, there are opportunities available for smaller companies to enter the market... purchase to read more