Industry Analysis & Industry Trends
The Global Oil and Gas Exploration and Production industry is expected to generate revenue of $4.28 trillion in 2012. This is up from $3.03 trillion in 2007, yielding growth of 7.1% per annum. Revenue is expected to expand by 0.3% in 2012, but that modest growth follows extremely large gains over the previous two years, when prices surged. Most of the gain in revenue over the five years through 2012 is due to increases in oil and gas prices well in excess of the general inflation rate. However, industry performance has been highly volatile over this period. The industry's profit is expected to be $3.29 trillion in 2012 and it will contribute about 5.0% of global GDP... read more
Industry SWOT Analysis
Although industry performance has benefited from price movements in excess of inflation, production is expanding more slowly than economic activity. In particular, the growth in oil output is much slower than global GDP growth.
The only segment in industry still in a growth phase is LNG production, which is increasing its share of energy markets. Improvements in LNG production facilities and in the ships used to transport the product are playing a role in promoting the growth of the fuel. Considerable growth opportunities remain, given that most gas deposits are not sufficiently close to markets to make pipeline transmission viable.
The pace of technological change outside the LNG segment is only moderate... read more