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 SWOT Analysis Chapter
The Oil and Mineral Exploration Drilling industry is in the declining stage of its economic life cycle. The industry has struggled following the peak of the mining investment boom in 2012-13. Since then, most mining companies have transitioned away from exploring for new resources and investing in greenfield mining sites, and have instead focused on increasing production at existing brownfield sites. This trend, coupled with falling commodity prices, has caused demand for the industry's exploratory drilling services to decline.
Industry value added (IVA) is used to measure an industry's contribution to the overall economy. IVA is forecast to decline at a compound annual rate of 4.8% over the 10 years through 2020-21... purchase to read more