Oil & Gas Exploration & Production
Competitive Landscape
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. The industry is capital-intensive: average annual revenue per employee is nearly $2 million.
Opportunities
Long-Term Natural Gas Leases - Many users, such as power companies, are willing to execute long-term contracts for natural gas to assure a long-term supply at a stable price. From...
Business Challenges
Volatility of Oil, Gas Prices - About 40 percent of the world oil supply comes from OPEC, which includes member states subject to political instabilities (nations in the Persian Gulf, Venezuela,...