|SIC Codes:||1311 1321|
|NAICS Codes:||211111 211112|
Companies in this industry develop and operate fields to extract crude oil and natural gas. Major companies include Apache, ConocoPhillips, and Exxon Mobil (all based in the US), as well as BP (the UK), LUKOIL and Tatneft (Russia), National Iranian Oil Company, PETROBRAS (Brazil), Royal Dutch Shell (the Netherlands), and Saudi Aramco (Saudi Arabia).
Demand is driven by economic activity, population growth, and energy efficiency for residential, industrial, and transportation 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.
Major products of the oil and gas exploration and production industry are crude oil and natural gas; each accounts for about half of industry revenue. About 30 percent of US petroleum production comes from offshore wells and 70 percent from land-based wells. About 15 percent of US natural gas production comes from offshore wells.Buy Now