Exclusive extracts from this 112-page-long report:
- What is the business?
Oil and gas companies' key activities include exploration, production, transportation, processing, and distribution. The upstream sector includes the exploration and production of crude oil and natural gas. The downstream sector comprises the transportation, refining, marketing and distribution of oil and gas, as well as the production of petroleum-derived products. […]
- What are the main markets?
Asia Pacific accounted for nearly 35% of global oil consumption in 2016, although its share remains inferior to that of North America and Europe & Eurasia on a per capita basis. More generally, average oil demand growth trends over the past decade highlight the market centre's rapid shift towards emerging markets. Demand in the Middle East, Africa, Asia Pacific, and South and Central America increased by an average of 2-3% per year over 2006-2016, while decreasing at an average annual rate of about 1% in North America and Europe & Eurasia during the same period. [...]
- Who are the key players?
A distinction can be made between National Oil Companies (NOCs) and International Oil Companies (IOCs). NOCs are typically established in major oil producing, developing nations (Russia, Mexico, OPEC) and play a significant role in their domestic economies and public finances, whereas IOCs compete with each other in international markets following more market and profit-oriented strategies. More recently, a third category of players has emerged: mixed NOCs, i.e. companies that aim to secure their home country's energy security while balancing government objectives with commercial profitability. [...]
- How intense is competition?
Intense competition exists in the oil and gas industry for access to upstream resources and downstream markets. Oil and gas companies compete on various fronts to tie up deals with owners of proved reserves, win customers, obtain technology and engineering resources, and raise cash. Furthermore, OPEC's traditional role in maintaining market stability has been weakened of late, changing the competitive environment and leaving prices more at the mercy of supply and demand dynamics. [...]