Industry Analysis & Industry Trends
In the five years through 2014-15, 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 rapidly adjusts. In 2011-12 and 2012-13, drops in demand have resulted in contractions in industry revenue... purchase to read more
Industry Report - Industry Key Buyers Chapter
Industry concentration is low, with the four largest firms estimated to account for less than 40.0% of industry revenue in 2014-15. Over the five years through 2014-15, industry concentration has increased as the larger exploration drilling firms gained market share at the expense of smaller companies. As the industry has shrunk and demand has declined, the largest companies have reduced prices charged to mining companies to ensure optimal use of equipment and to attempt to maintain revenue levels and profit margins.
With weaker demand for exploration drilling services expected in the five years through 2019-20, industry concentration is expected to continue to increase, as the industry's major players are able to exert market power through more competitive pricing... purchase to read more