Surgutneftegas - Competitors

Surgutneftegas Competition

Now Viewing Surgutneftegas's competition in: Oil and Gas Exploration and Production

Recent Developments

Drilling Investment Rises in 2006 - Oil and gas exploration companies significantly increased investment in exploration and production in 2006, evidenced by a 44 percent increase in spending on wells compared to 2005. This latest information was released as part of the 2006 Joint Association Survey on Drilling Costs. Oil and gas exploration efforts included a 19 percent increase in spending on exploration wells, and a 47 percent increase for development wells.

North Pole Controversy Continues to Develop - Global warming-induced melting in the North Pole may eventually allow increased oil and gas exploration there, but multiple nations claim portions of the region as their own, creating an ongoing international controversy. Russia, adding to the tension, sent a marine expedition to claim the region by planting its flag. Both the US and Canada also claim portions. Oil and gas exploration companies will no doubt add significant weight to ownership claims as opportunities for exploration and development evolve.

Industry Watches 2008 Hurricane Season Closely - Hurricanes can significantly impact oil and gas exploration and production in the Gulf of Mexico, which, by industry estimates, produces 25 percent of US oil and nearly 12 percent of US natural gas. However, new data downplays the hurricane-related risk to Gulf production, indicating that, on average, only 1.4 percent of oil and 1.3 percent of gas production was impacted in the past 10 years due to hurricanes. Still, NOAA has given the 2008 hurricane season a 90 percent chance of producing more hurricanes than normal, which has many companies preparing for that eventuality.

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

Oil and Gas Exploration and Production Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US natural gas extraction and crude petroleum production is forecast to grow at an annual compounded rate of 1.5 percent between 2007 and 2012.

Oil & Gas Production Growth Volatile

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.