Apache Competition
Now Viewing Apache's competition in: Oil and Gas Exploration and Production (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who are the company's main customers? - Crude oil is sold to either major oil companies or to crude oil gathering companies that then sell it in bulk to refiners. Aggregators and utilities buy most of the processed gas.
Does the company sell products at wellhead or delivered prices? - Crude may be sold at the wellhead or at the refinery with the seller responsible for transportation.
How might competition from renewable fuels affect the company? - The US government and a number of state governments are passing legislation requiring the use of renewable fuels.
Competitive Landscape
Demand is driven by economic activity, population growth, and energy efficiency for residential, industrial, and transportational uses of oil and gas. Profitability of individual companies is driven by the success rate of new wells drilled and the ability to increase production from existing wells. Large companies are advantaged by access to capital, including the ability to buy or merge smaller companies. Small companies compete by focusing on, and developing expertise in, a few geographic areas. The industry is capital intensive: average annual revenue per employee is about $5 million.
Full Industry Overview For Oil and Gas Exploration and Production
Business Challenges
CRITICAL ISSUES
Volatility of Oil, Gas Prices - About 35 percent of the world oil supply of 85 million barrels of oil per day comes from areas with political instabilities (the Persian Gulf, Venezuela, and Nigeria). Given the fragile balance of supply and demand, perceived threats to the supply can cause large price disturbances. Capital availability and investment decisions are driven by estimates of future prices and probable production levels.
Environmental Concerns - Petroleum and natural gas well blowouts in the past have caused oil and natural gas well drilling to be associated with toxic spills and site contamination. High-visibility accidents have occurred despite requirements for well safeguards and restrictions on drilling in populated and environmentally sensitive areas. Environmental restrictions and regulations limit exploration opportunities for companies and add cost to drilling operations.
Industries Where Apache Competes
- Energy & Utilities
- Oil & Gas Exploration & Production(primary)
