Industry Analysis & Industry Trends
In the five years through 2012-13, the Oil and Mineral Exploration Drilling industry has followed a volatile growth path. The industry provides services for mining companies engaged in greenfield oil and mineral exploration. This is the riskiest area of the Mining division, where companies are engaged in looking for new and economically viable deposits of resources. Expenditure on greenfield exploration fluctuates significantly year on year in line with small miners' ability to access capital. When commodity prices fall, or sentiment around the Mining division declines, demand for greenfield exploration services can dry up suddenly. In 2008-09 and 2012-13, drops in demand have resulted in contractions in industry revenue... purchase to read more
Industry Report - Starting a New Business Chapter
Entry barriers to the industry for new firms are at a moderate level. The industry faces high regulation level and extensive capital requirements and requires highly skilled workers. These barriers are offset by the ability for small firms to operate successfully and minimise management and operational costs. Many businesses in the industry are sole operators, or only employ one or two workers, which reduces management and training requirements for a large number of small exploration drilling companies in the industry.
Regulations are relatively heavy for the industry, which increases entry barriers due to additional costs and requirements that exploration drilling companies need to pay and meet compared with other sectors of the economy... purchase to read more