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 - Industry SWOT Analysis Chapter
Industry value added (IVA), which measures the industry's contribution to the overall economy, is forecast to decline at a compound annual rate of 5.8% over the 10 years through 2017-18. This is in contrast to generally steady GDP growth in Australia over the same period, which is projected to rise at a compound annual rate of 2.4%. The industry is expected to have a smaller share of the overall economy in 2017-18 than it did in 2007-08.
The industry's IVA growth has been suppressed by limited growth in greenfield exploration over the past decade. Although the industry is expected to re-allocate assets through consolidation in the next five years, margins are not expected to improve. The industry's existing services are well accepted by the market... purchase to read more