Exploration & Drilling Market Research Reports, Analysis & Trends
Exploration & drilling industry comprises companies that majorly operate by exploring the oil, petroleum and mineral mines and drill them to extract the necessary raw materials for refining, producing and manufacturing of valuable products. Typically, firms in this industry explore for crude petroleum and natural gas. Globally, these firms are oil and gas producers seeking to expand their reserves and also their operations across multiple demographics. The exploration and drilling industry's firms basically engage in test drilling, boring and core sampling for exploratory purposes in the mining, oil and gas operations wherever mines are discovered. The mining companies hire and contract exploration & drilling companies to carry out all the exploratory drilling for new projects. In exploration & drilling, main areas concentrated on are minerals, petroleum and natural gas.
The petroleum exploration is one of the most fast growing an most revenue generator amongst other exploration and drilling areas. Even though the revenue has had its ups and downs with revenue in the last few decades, but it has not suffered any losses or negative effects. The major reasons the fluctuated revenue is because of the massive swings in oil and gas prices, global economic activity and exchange rates. These interrelated drivers have offset the individual effects of drivers such as commodity prices and exchange rates. These factors were demonstrated by the industry's performance during 2008 and 2009, particularly when oil and gas prices came crashing down with the condition of economic crisis across many countries globally. There was a big impact on the petroleum exploration industry and the exploration activity was delayed as many projects were underway and revenue improved and grew for the year. Australia's petroleum exploration industry however is in a mature life cycle phase and demand for the industry's service is growing due to the end use demand for gas and advanced in gas extraction, therefore increasing its industry's revenue.
Current Trends in Exploration & Drilling Market
During the period of 2012 to 2013, the exploration and drilling industry has sort of declined in real terms as the start of the five-year period marked a peak in demand for new exploration projects and commodity prices were setting records and the build-up of capital investment in mining was gaining strong momentum, but during the global financial crisis, which is looming over many countries' head, the appetite for risky exploration projects decreased and at the same time the industry revenue dipped. The global oil and gas exploration and drilling industry is expected to generate revenue of $4.5 trillion by the end of 2013, and this growth rose from $4.2 trillion in 2008, which yielded an annualized growth rate of 1.3% in the five years by the end of 2013. It is a low concentrated industry with the top-four companies being The Saudi Arabian Oil Company, the National Iranian Oil Company, PetroChina Company Limited, Exxon Mobil Corporation and Gazprom OAO.
The international trade has become an increasingly important aspect of the exploration and drilling industry over the last decade, and particularly five years. Internationally, over 57.0% of the oil produced in 2013 is traded and nearly 32.0% natural gas. Both of them combined the value of international trade of oil and natural gas by the end of 2013 is forecast to be $1.9 trillion.
Major Exploration & Drilling Players
Major players in exploration and drilling industry include, British Petroleum, Bridas Corporation, Canadian Natural Resources, Husky Energy, Syncrude, Greka Energy, Murphy Oil, Shell Oil Company, Gujarat State Petroleum Corp, Essar Oil, Reliance Industries, and Qatar Petroleum.