Industry Analysis & Industry Trends
Over the past five years, the performance of the Oil and Mineral Exploration Drilling industry has been volatile. Industry players provide services to mining companies that are engaged in greenfield oil and mineral exploration. This is the riskiest area of the Mining division as companies look for new economically viable resource deposits. Expenditure on greenfield exploration fluctuates significantly year on year, in line with small miners' ability to access capital. When commodity prices fall or sentiment in the Mining division declines, demand for greenfield exploration services (such as specialist drilling activities) tends to decline.
Over the past 10 years, industry operators have benefited from a prolonged boom in capital expenditure in the Mining division... purchase to read more
Industry Report - Industry Analysis Chapter
Industry participants provide services to companies that explore untapped areas in the hope of finding economically viable resources, such as oil, gas and minerals. The industry plays a cyclical role in the Mining division as operators search for new resources and complete greenfield exploration projects. Exploration is cash-intensive and independent exploration companies rely on strong sentiment to gather the necessary capital to purchase exploration rights and services.
Demand for these risky activities fluctuates strongly, with increases in global commodity prices and strong capital investment supporting industry revenue growth. However, the industry typically declines strongly when investment is scaled back and major commodity prices fall... purchase to read more